Flashbinder Guitars, Inc is considering a lockbox system that will increase its check processing cost
by $.15 per check. The company estimates an average check size of $1,700 and expects the lockbox
to reduce check collection time by 3 days.
What annual before-tax yield must Flashbinder Guitars,
Inc earn on its marketable securities for the lockbox system to be beneficial?
A) 0.735% B) 1.118% C) 1.825% D) 1.074%
D
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Francis was just learning to drive. She forgot to put the car into park and it rolled down the driveway and into the neighbor's automobile. What part of her automobile insurance policy will cover the damage to her neighbor's automobile?
A) Part A: liability coverage B) Part B: medical expense coverage C) Part C: uninsured motorists coverage D) Part D: damage to your automobile coverage
Presented below are the comparative December 31 financial statements for Martin Industries, Inc. (in $ Millions). Prepare a statement of cash flows for December 31, Year 2 using the indirect method
Martin Industries, Inc Balance Sheets At December 31, Year 2 and Year 1 Year 2 Year 1 Cash $96,719 $28,694 Accounts Receivable 100,000 85,313 Inventory 206,250 181,250 Prepaid Insurance 1,875 2,500 Land, Buildings, and Equipment 1,562,500 1,406,250 Accumulated Depreciation (762,500) (715,000) Investments 19,375 106,250 Total Assets $1,224,219 $1,095,256 Accounts Payable $95,425 $185,838 Salaries Payable 25,000 30,625 Notes Payable 31,250 93,750 Bonds Payable 250,000 - Common Stock 375,000 375,000 Retained Earnings 447,544 410,044 $1,224,219 $1,095,256 Additional information for Year 2 (1) Sold available for sale securities costing $86,875 for $92,500. (2) Equipment costing $25,000 with a book value of $6,250 was sold for $7,500. (3) Issued 8% bonds at face value for $250,000. (4) Purchased new equipment for $181,250 and paid cash. (5) Paid cash dividends of $25,000. (6) Net income was $62,500. What will be an ideal response?