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Question - You wish to invest in a franchise for either one of two national chains. Each franchise has as expected annual net income after interest and taxes of $100,000. Net income for the first franchise includes a regular fixed interest charge of $200,000. The fixed interest charge for the second franchise is $40,000.
1. Which franchise is riskier to you if sales forecasts are not met?
2. Does your decision change if the first franchise has more variability in its income stream?
Christy General Hospital, a not-for-profit organization, accounts for its activities using a General Fund (GF), and three restricted fund groups-Specific.
Using the FIFO assumption, calculate the amount charged to cost of goods sold for March. (Show computations), Using the LIFO assumption, calculate the value of ending inventory for March
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Should the asbestos companies be held morally responsible in the sense of being capable of making a moral decision about the ill effects of asbestos exposure?
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