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
Which of the following statements about the federal flood insurance program is true? A) Under the write-your-own program, each insurer services the policies it writes. B) The regular portion of the program does not allow the purchase of higher amounts of coverage than are available under the emergency portion of the program. C) No coverage […]
Date: September 19th, 2020
Which of the following statements about title insurance is true? A) A premium must be paid annually to keep the policy in force. B) The policy term runs for 30 years or the length of the insured’s mortgage loan, whichever is shorter. C) The policy guarantees that the owner will keep possession of the property […]
Date: September 19th, 2020
A firm’s ending equity equals the firms beginning equity plus any change in retained earnings. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The basic purpose of FAIR plans is to provide A) property insurance to persons who cannot obtain it in normal markets. B) automobile insurance to persons who cannot obtain it in normal markets. C) health insurance to persons who cannot afford it in normal markets. D) workers compensation insurance to employers who do business in […]
Date: September 19th, 2020
