Ken, a research chemist, has been promised a fellowship with a stipend of $10,000 to do research on synthetic fuel oil. Under the terms of the fellowship, Ken is free to use the money as he sees fit. Ken decides to build his own laboratory, so he will
not have to rent one. He hires a carpenter who begins working on shelving and cabinets in the laboratory. Then Ken receives a telegram saying the fellowship has been canceled. No reason is given for the cancellation. If Ken sues, will he be able to collect the money from the foundation which promised the fellowship? Explain your answer using legal terminology.
It might be argued that since no work product is required, there was no consideration for the fellowship. Therefore it may be revoked. However, Ken has detrimentally relied on the promise of the fellowship, and under the doctrine of promissory estoppel, the courts would in all likelihood stop the grantors from rescinding the fellowship.
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The accounts receivable turnover ratio measures a company's ability to ________
A) make credit sales B) collect the cash owed from its credit customers C) increase its credit customer base D) convert accounts receivable to notes receivable
Luke Corporation is a manufacturer of home furnishings. Selected financial information about Luke is listed below: • Borrowed $850,000 from a bank. Purchased equipment for $210,000 in cash. • Purchase investments for $285,000. • Received dividends of $51,000 from an investment in Davis Corp • Paid dividends of $55,000. • Issued shares of preferred stock for $500,000. Repurchased
outstanding common shares using $100,000 in cash. • Purchased land for $100,000 cash. • Paid $36,000 interest expense on a bank loan. • Increased Inventories by $320,000 • Increased accounts receivable by $217,000. • Increased accounts payable $85,000. Use the above information to calculate Luke's: a. cash used or provided by investing activities b. cash used or provided by financing activities