Universal Financial, Inc. has total current assets of $1,200,000; long-term debt of $600,000; total
current liabilities of $500,000; and long-term assets of $800,000. How much is the firm's net
working capital?
A) $900,000 B) $600,000 C) $700,000 D) $1,000,000
C
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The cost of a patent should be amortized over its ______________ life or its________________ life, whichever is shorter.
Fill in the blank(s) with the appropriate word(s).
Michael's Hats, Inc has two product lines—batting helmets and football helmets
The income statement data for the most recent year is as follows: Total Batting Helmets Football Helmets Sales revenue $900,000 $500,000 $400,000 Variable costs (480,000 ) (200,000 ) (280,000 ) Contribution margin $420,000 $300,000 $120,000 Fixed costs (230,000 ) (80,000 ) (150,000 ) Operating income (loss) $190,000 $220,000 $(30,000 ) If $90,000 of fixed costs will be eliminated by dropping the football helmets line, how will dropping football helmets affect operating income of the company? A) Operating income will increase by $90,000. B) Operating income will increase by $120,000. C) Operating income will decrease by $150,000. D) Operating income will decrease by $30,000.