Finance

Michelle had four matching end tables in her home. A fire damaged the

Michelle had four matching end tables in her home. A fire damaged the home, destroying two of the end tables. Michelle’s home was covered by an unendorsed Homeowners 3 policy. Which of the following is true with regard to the settlement for the end tables in this case? A) Loss to a pair or set […]

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Date: September 19th, 2020

Dunweiler Inc, is developing a pro forma income statement for the comi

Dunweiler Inc, is developing a pro forma income statement for the coming year. The chief financial officer estimates that sales will be $150,000,000. If selling, general, and administrative expenses (SGA) are historically 18% of sales, what are the expected SGA expenses (in dollars)? A) $18,000,000 B) $27,000,000 C) $30,000,000 D) $41,000,000     ANSWER B […]

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Date: September 19th, 2020

Jones, Inc. has a current ratio equal to 1.40. Which of the following

Jones, Inc. has a current ratio equal to 1.40. Which of the following transactions will increase the company’s current ratio? A) The company pays back $50,000 of its long-term debt. B) The company collects $500,000 of its accounts receivable. C) The company sells $1 million of inventory on credit. D) The company writes a $30,000 […]

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Date: September 19th, 2020

All of the following statements about conditions under a Homeowners 3

All of the following statements about conditions under a Homeowners 3 policy are true EXCEPT A) If an insurer broadens coverage without an additional premium during the policy period, the broadened coverage applies immediately to the present policy. B) A waiver or change in any policy provision must be approved in writing by the insurer […]

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Date: September 19th, 2020

Baker Corp is required by a debt agreement to maintain a current ratio

Baker Corp is required by a debt agreement to maintain a current ratio of at least 2.5, and Baker’s current ratio now is 3. Baker wants to purchase additional inventory for its upcoming Christmas season, and will pay for the inventory with short-term debt. How much inventory can Baker purchase without violating its debt agreement […]

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Date: September 19th, 2020