Which of the following is true of the sales budget?
A) It provides sales data that is used to prepare financial statements for external reporting purposes.
B) It captures the variable and fixed expenses of the business.
C) It is used in the production budget.
D) It shows the cost of expected production in a period.
C
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In investors’ minds, Wilson’s share buyback could be a signal that the company:
Janet Wu is treasurer of Wilson Paper Company, a manufacturer of paper products for the office and school markets. Wilson Paper is selling one of its divisions for $70 million cash. Wu is considering whether to recommend a special dividend of $70 million or a repurchase of 2 million shares of Wilson common stock in the open market. She is reviewing some possible effects of the buyback with the company’s financial analyst. Wilson has a longterm record of gradually increasing earnings and dividends. Wilson’s board has also approved capital spending of $15 million to be entirely funded out of this year’s earnings. Book value of equity $750 million ($30 a share) Shares outstanding 25 million 12-month trading range $25–$35 Current share price $35 After-tax cost of borrowing 7% 60 Learning Outcomes, Summary Overview, and Problems part-i-07 13 January 2012; 10:21:1 Estimated full year earnings $25 million Last year’s dividends $9 million Target debt/equity (market value) 35/65 A. is decreasing its financial leverage. B. views its shares as undervalued in the marketplace. C. has more investment opportunities than it could fund internally.
Hellmut Schütte has proposed a modified equivalent of Maslow's hierarchy of needs theory to explain the needs and wants of African consumers
Indicate whether the statement is true or false