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Practice
1. Below are three line items from a corporation's Income Statement (note: this is NOT the entire Income Statement!). Select the correct line to use and compute the federal tax.
Sales: $335,000
Cost of Goods Sold: $225,000
Net Profit Before Tax: $ 97,000
2. Can you think of a reason financial managers could be tempted to manage earnings?
Is it unethical for managers to manage earnings if they disclose their activities to investors?
Find at least one reference from your book or another source to support each answer.
3. What are the potential risks to a company of unethical behaviors by employees?
What are potential risks to the public and to stakeholders?
Zoe operates Wood Rail Center Sports, an athletic equipment shop, as a sole proprietorship. Which of the following would be the best advice for Zoe?
The restaurant you are working at makes one massive batch of ravioli each day. If you run out before the end of the day, the last few customers are less than satisfied, but if you make too much, it can be sold to the local hog farmer for feed. Every ..
What are the common software/solutions for Vendor Managed Inventory in SMEs?
Calculate the? firm's tax on its operating earnings only. Find the tax and after-tax amount attributable to the interest income from Zig Manufacturing bonds.
Dubois Inc. has completed the purchase of new Dell computers. The fair value of the equipment is $824,400. The purchase agreement specifies an immediate down payment of $227,800 and semiannual payments of $69,940 beginning at the end of 6 months for ..
Explain why a business may decide to seek capital from a foreign investor indicating the risk and rewards for such a decision. Provide support for rationale.
What aspect of strategy formulation do you think requires the most time? Why?
What are the total annual costs of holding and ordering (managing) this inventory? How many orders should Discount-Lighting place with the suppliers each year?
If the contribution margin is $10, the selling price per unit is $25 and the fixed costs are $45,000, what is the number of units that must be sold to break-even?
You are at a seminar with other attendees representing various types of healthcare organizations. After dinner you are chatting with several of your new fellow attendees and you are discussing who has it easier for raising capital, the not-for-profit..
Gillepsie furniture buys two products for resale: big shelves (B) and medium shelves (M).
Discuss the use of the problem solutions matrix in helping you select the solution you believe will best address the organizational problem you have identified.
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