Paul has a personal auto policy with a per-person liability limit of $300,000. He also has a personal umbrella policy with a limit of $2,000,000 and a self-insured retention of $1,000. How much will be paid by each policy if a person wins a judgment of $500,000 against Paul as a result of bodily injury […]
Date: September 19th, 2020
An alternative method of projecting a firm’s future financial needs (such as bank loans ) involves creation of a pro forma cash budget. Would you consider a cash budget to be more appropriate for short-term or long-term projections? Why? How do monthly cash budgets aid in the development of an annual cash budget? Is a […]
Date: September 19th, 2020
Based on the information in Table 4-1, the average collection period is A) 29.85 days. B) 36.50 days. C) 46.34 days. D) 32.85 days. ANSWER D
Date: September 19th, 2020
Jan showed the following financial items in 2007 and 2008: 2007 2008 Salary 22,000 20,000 Payroll taxes 4,000 3,500 Other inflexible expenses 11,000 11,000 Flexible expenses 6,000 5,300 In relation to 2007’s savings, Jan’s savings in 2008 A) decreased by $800. B) decreased by $200. C) increased by $200. D) increased by $800. […]
Date: September 19th, 2020
Siskiyou, Inc. has total current assets of $1,200,000; total current liabilities of $500,000; long-term assets of $800,000; and long-term debt of $600,000. How much is the firm’s total equity? A) $1,200,000 B) $900,000 C) $800,000 D) $2,000,000 ANSWER B
Date: September 19th, 2020
Two sisters each open IRAs in 2011 and plan to invest $3,000 per year for the next 30 years. Mary makes her first deposit on January 1, 2011, and will make all future deposits on the first day of the year. Jane makes her first deposit on December 31, 2011, and will continue to make […]
Date: September 19th, 2020
Use the information provided in Table 6.1 to complete the pro forma income statement and balance sheet for J. W. Bracken Inc. What will be an ideal response? ANSWER Table 6.1 Answers Assumptions: ($000’s) Current Sales $136.36 Growth Rate in Sales 10.0% Gross Profit (% of Sales) 36.0% SGA Expenses (% of Sales) […]
Date: September 19th, 2020
Which of the following statements about a typical personal umbrella policy is (are) true? I. Losses covered under an underlying policy and the umbrella policy are settled on a pro rata basis. II. Losses not covered by the basic underlying contracts are subject to a self-insured retention which typically is at least $25,000. A) I […]
Date: September 19th, 2020
Which of the following statements about coverage under the federal flood insurance program is (are) true? I. Subsidized coverage is available for contents, but not for dwellings. II. A $10,000 deductible applies to each loss. A) I only B) II only C) both I and II D) neither I nor II ANSWER Answer: […]
Date: September 19th, 2020
A “Dutch auction” was used by Google to raise money in 2004. A Dutch auction involves A) hiring a Dutch firm to sell a company’s securities at auction. B) allowing investment banking firms to submit bids on how many shares they are willing to sell and at what price. C) allowing investors to submit bids […]
Date: September 19th, 2020
