If sprinkle industries has a margin of safety ratio of. 60, it could sustain a 60 percent decline in sales before it would be operating at a loss.

a. True

b. False

Luis is the sole shareholder of a corporation, and Eduardo owns a sole proprietorship. Both businesses were started in year 2015, and both make a profit of $80,000 in year 2015.

4. Suppose an acquiring firm pays $100 million for a target firm and the target's assets have a book value of $70 million and an estimated replacement value of $80 million. What amount would be allocated to the acquiring firm's goodwill account?

One of the ways in which affirmative action differs from workplace diversity is that: A. the purpose of affirmative action is to create a positive work environment, whereas the purpose of diversity is to compensate for past discrimination. B.

Elon Musk built an all-electric car in an effort to do what? What perpetuated him to try and take on the auto-industry as he has?

Armstrong Valley Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 40,000 parts is $138,000, which includes fixed costs of $68,000 and variable costs of $70,000.

Assume that a $1,000,000 par value, semiannual coupon US Treasury note with five years to maturity has a coupon rate of 6%. The yield to maturity (YTM) of the bond is 11.00%.

Oftentimes, the socially optimal quantity for a product that imposes external costs on the society is not zero, but something greater than zero. This is because completely eliminating the externality would involve:A.

When the Wright brothers designed their aircraft, they built a wind tunnel to model the aerodynamics of different wing designs. Identify each of the factors below as endogenous or exogenous to the Wright brothers' model.

Which of the following debit and credit rules is correct? A. Decreases in assets and liabilities are credited. B. Increases in liabilities and stockholders' equity are credited. C. Increases in liabilities and stockholders' equity are debited. D.

Consider Walmart, a large retailer. Classify the following items as an Asset (A), a Liability (L), or Stockholders' Equity (S) for Walmart Accounts receivable Long-term debt Merchandise inventory Prepaid expenses Accrued expenses payable Equipment