Connect Questions Flashcards
(208 cards)
1
Q
Strategic planning and financial planning process involves the following steps:
A
Decisions, Performance, Planning, and Thinking
2
Q
The purpose of short term financial forecasting is to ensure what?
A
Sufficient cash balances are available to pay bills as they come due
3
Q
A company should be able to estimate which of the following on the basis of its projected financial statements?
A
accounts receivable, inventory, and payables
4
Q
According to the text, if there is one talent essential to the financial manager it is the ability to ___________________.
A
plan ahead and to make necessary adjustments before actual events occur.
5
Q
Computerized spreadsheets allow for _____ forecasts under different assumptions resulting in ______ levels of forecasted profits.
A
multiple; multiple
6
Q
Careful collection of data and analysis is part of which of the following strategic planning and financial planning process:
A
thinking
7
Q
Financial forecasting tend to focus on what time period?
A
Short-run
8
Q
The most comprehensive means of financial forecasting is to
A
develop a series of projected, or pro forma, financial statements.
9
Q
Financial forecasting is essential to the strategic _____ of the firm.
A
Growth
10
Q
The importance of the pro forma income statement is to provide a projection of how much _____ is anticipated over the ensuing time period.
A
Profit
11
Q
Computerized spreadsheets of pro forma financial statement allow(s) for what type(s) of analysis?
A
what-if, sensitivity
12
Q
The first step in developing the pro forma income statement is to
A
establish a sales projection
13
Q
Using a systems approach, the first pro forma statement to be constructed is the
A
Income Statement
14
Q
The ____________ provides a projection of how much profit the firm anticipates making over the ensuing time period.
A
pro forma income statement
15
Q
______ analysis calls for the sales department to survey their salespeople within their territories.
A
Internal
16
Q
Following the steps needed to develop the pro forma income statement. Place each step in its proper order.
A
- Establish a sales project
- Determine a production schedule
- Compute Other expenses
- Determine Profit
17
Q
The crucial starting point in constructing pro forma financial statements is the __________.
A
sales projection.
18
Q
This formula is used to determine the firm’s _____ requirements:_____________ = Projected sales + Desired ending inventory - Beginning inventory
A
Production
19
Q
A firm using the FIFO inventory valuation method has beginning inventory of 300 units at a cost of $15 each. During the period the firm produced 700 units at a cost of $17 each. If the firm sold 800 units during the period, the cost of goods sold is
A
13,000
20
Q
The projected price of a product is based on the following:
A
firm’s anticipated response to competitor’s price, firm’s cost structure, and firm’s marketing effort
21
Q
A firm’s operating profit is $50,000, interest expense is $4,000, the tax rate is 35%, and common stock dividends are $2,500. Calculate the firm’s earnings after taxes:
A
29,900
22
Q
A company has sales of $1,000,000, cost of goods sold at 60% of sales, general and administrative expenses of $250,000, interest expenses of $25,000, and a tax rate of 40%. The firm’s earnings after taxes is
A
75,000,
23
Q
Multiple Choice Question
The firm projects sales at 500,000 units and requires an ending inventory of 25,000 units. If the firm’s beginning inventory is 50,000 units, what is the firm’s production requirement for the period?
A
475,000 units
500k +25k-50k=475 k
24
Q
A firm using the FIFO inventory valuation method has beginning inventory of 300 units at a cost of $15 each. During the period the firm produced 700 units at a cost of $17 each. If the firm sold 800 units during the period, what is the value of ending inventory?
A
$3,400
Reason: Sold 300 @ $15 and 500 @ $17, leaving 200 @ $17 in ending inventory = $3,400
25
Cash budget is prepared by translating the following into cash flows:
pro forma income statement
26
A firm sells 500,000 widgets at $40 each, the cost of the widgets is $25 each, expected general and administrative expenses are 20% of sales, the firm has $2,000,000 of debt at a rate of 5%, and taxes are 35%. Calculate the firm's earnings after taxes?
$2,210,000
Reason: Sales =500K X$40=$20M Less CoGS=500K X$25=$12.5M GP = $7.5M Less G&A=500K X $40 X 0.2=$4M EBIT = $3.5M Less Int = $2M X 0.05 = $0.1M EBT = $3.4M Less Tax=$3.4M X 0.35 = $1.19M EAT = $2.21M = $2,210,000
27
In preparation of the pro forma income statement, which of the following items are deducted from gross profits to arrive at earnings after taxes?
General and administrative expenses, interest expense, and tax expense
28
The following budget can help a firm survive in the long term
Cash
29
A company has forecasted sales of $50,000 in January, $40,000 in February, and $60,000 in March. All sales are on credit with 50% collected in the month of the sale, 30% collected in the month following the sale, and the remaining amount collected in the second month after the sale. What will the accounts receivable balance be after collections are made in the month of March.
38,000
Reason: A/R at the end of March (i.e., credit not yet collected) will be 30% + 20% of Mar ($60K X .5 = $30K) + 20% of Feb ($40K X 0.2 = $8K) = $38,000
30
The primary considerations for cash payments are monthly costs associated with
general and administrative expenses, interest payments and taxes, and inventory manufactured during the period.
31
A company anticipates sales of $300,000 for the months of April, May, June, and July. Materials represent 50% of sales, and because of level production, material purchases will be equal for each month. Materials are paid for one month after the month purchased. Labor costs are $16,000 in April, $19,000 in May, $16,000 in June, and $21,000 in July. Fixed overhead is $12,000 per month. General and administrative expenses are $2,000 per month, interest expense of $2,500 is paid in May, and new equipment of $10,000 is also purchased in May. What are the company's total cash payments in May?
$195,500
Reason: Mat=($300K X 0.5) = $150K Labor = $19K FOVD = $12K G&A = $2K Int = $2.5K Equip = $10K Total Payments = $195,500
32
The firm has projected sales of $30,000 in June, $25,000 in July, and $20,000 in August. 20% of sales are collected in the month of the sale and 80% are collected in the month following the sale. What are cash receipts in August?
$24,000
Reason: = 20% of Aug ($4,000) + 80% of July ($20,000) = $24,000
33
Cash payments may be necessary for all of the following except
depreciation expenses.
Reason: Depreciation is a non-cash expense, used for tax & accounting purposes only.
34
A company anticipates monthly sales of $400,000 (i.e., per month in January, February, March, and April). Material costs represent 55% of sales and due to level production, material purchases will be equal for each month. Labor costs are expected to be $15,000 in January, $18,000 in February, $14,000 in March, and $19,000 in April. Fixed overhead is $10,000 per month. General and administrative expenses are $2,500 per month, an interest expense of $2,500 is paid in March, new equipment is purchased for $10,000 in February, and a dividend of $3,000 is paid in March. The company's total cash payments in March are
252,000,
35
The difference between total cash receipts and total cash payments is referred to as?
Net cash flow
36
The difference between monthly cash receipts and payments is referred to as _____________.
net cash flows.
37
A firm anticipates cash receipts for February of $20,000 and for March of $30,000. Cash payments are expected to be $5,000 in February and $7,000 in March. The cash balance at the beginning of February was $6,000, which is the level the firm wishes to maintain. At the beginning of February, the firm has a $21,000 loan balance on a line of credit with a local bank. Based on the cash budget, how much can the firm repay in February and March?
$15,000 & $6,000, respectively, with a $23,000 cash balance at the end of March.
Reason: FEBRUARY
$15K (Feb Net CF) + $6K (Beg Cash Bal) = $21K (Cum Cash Bal - $6K End Cash Bal = $15K Feb Repayment
MARCH
$23K (Mar Net CF) + $6K (Beg Cash Bal) = $29K (Cum Cash Bal - $6K Feb Repayment = $23K Mar End Cash Balance.
38
A firm has total receipts of $16,000, $20,000, & $18,000 and total payments of $12,000, $15,000, & $12,500, in January, February, & March, respectively. The firm's net cash flow for January is
4,000
39
The primary purpose of the _____ budget is to allow the firm to anticipate the need for outside funding at the end of each month.
Cash
40
Which of the following is a projection of future assets, liabilities, and stockholders' equity levels?
Pro forma balance sheet
41
The information used to prepare the pro forma balance sheet comes from which of the following:
prior year's balance sheet, pro forma income statement, and cash budget
42
A firm will likely take what action if they are falling below their targeted minimum cash balance?
liquidate marketable securities
43
A firm wishes to maintain a cash balance of $8,000 at all times. The cash budgets reveals that that the firm will go below this amount in the month of May. To maintain the desired cash balance, the firm must _____________.
borrow additional funds.
44
The pro forma balance sheet is developed by integrating the information from the _____.
pro forma income statement and cash budget.
45
A firm that does not wish to borrow to meet anticipated sales growth may instead decide to
issue additional common stock and issue preferred stock.
46
In developing cash balance for the pro forma balance sheet, the financial manager is most likely to turn to the
cash budget
47
The __ method assumes that accounts on the balance sheet will maintain a given percentage relationship to sales
percent-of-sales
48
Sales growth can be financed through which of the following?
Sale of common stock, Use of notes payable, and Issuance of long-term debt.
49
The last step in the process of developing pro forma financial statements is the
pro forma balance sheet
50
A firm determines that sales will rise from $500,000 to $750,000 next year. The relationship of variable assets to sales is 50% and the relationship of variable liabilities to sales is 20%. The firm has a 10% profit margin and a dividend payout ratio of 30%. What is the level of new funds required?
$22,500
Reason: Apply equation 4-1 (RNF)=0.50($250K) - 0.20($250K) - (0.10 X $750K) X (1 - 0.30) = $22,500
51
RNF is calculated by subtracting spontaneous increase in liabilities and increase in retained earnings from spontaneous increase in ______
Assets
52
To achieve balance between assets and liabilities, we would enter the required new funds amount as which item in the balance sheet if short term financing is available:
notes payable
53
Which approach to determining a firm's financial needs is easier to use but less exacting?
Percent-of-sales method
54
In developing data for accounts receivable for the pro forma balance sheet, the financial manager is most likely to turn to the
monthly cash receipts report.
55
A firm anticipates a 30% growth in sales this coming year. Last year the firm had the following figures expressed as a percentage of sales: cash at 10%, accounts receivable at 25%, and inventory at 20%. Using the percentage-of-sales forecasting method, what percentage growth in current liabilities is needed to sustain the growth in sales?
30.0%
Reason: The percent-of-sales method maintains assets and liabilities at a consistent ration. If sales are anticipated to increase by 30% then current liabilities would also increase by 30%.
56
Which of the following is correct for part of the required new funds formula?
profit margin(1 - dividend payout ratio)
57
NF=Spontaneous increase/decrease in ______−Spontaneous increase/decrease in _______−Increase/decrease in retained earnings
assets, liabilities
58
The percent-of-sales method for financial forecasting
assumes balance sheet accounts maintain a constant relationship to sales.
59
__ assumes that the performance ratios and balance sheet-to-sales ratios remain constant.
Sustainable Growth Rate (SGR)
60
Sustainable growth represents the maximum rate of growth obtainable without changing the following:
debt to equity ratio
61
Sustainable Growth Rate (SGR) assumes that the performance ratios and balance sheet-to-sales ratios remain _______.
Constant
62
growth represents the maximum rate of growth obtainable without changing the following debt ratio.
Sustainable
63
Which type of risk is based on the debt and or share equity of the firm?
Financial
64
The extent with which fixed costs are used in the operations of the firm is known as
operating leverage
65
Operating leverage determines return from operations whereas __ leverage determines how his earnings is allocated to debt holders
Financial
66
During an economic upturn, when a firms sales volume is high, a firm that has a high fixed costs may __ ?
Incur a greater percentage of profit than a firm with high variable costs
67
Following are the two major risks faced by any firm
market and financial risk
68
__ leverage determines return from operations whereas financial leverage determines how this earnings is allocated to debt holders
Operating
69
The degree of Operating leverage is to the __
The extent to which fixed assets and associated fixed costs are used in the business
70
During an economic downturn, when a firm's sales volume is low, a firm that has high fixed costs may__
Have trouble covering their fixed payments
71
An example of a fixed cost is
Property taxes, long-term rental contacts, executive salaries
72
A firm that is unable to make its debt payments may be subject to
bankruptcy
73
The vertical axis of the break-even chart represents the
revenues and costs
74
A firms operational costs may be classified in the following categories
Semi variable, variable, fixed
75
The break-even point is
the point in units where total revenue equals total costs
76
The area on the break-even chart above the break-even point represents
the profitable range of a firm's operations
77
The break-even point occurs when the company's (formula)
total revenue= fixed costs + variable costs
78
The area below the break-even point represents __ to the firm
losses
79
Once the company produces and sells the units required to break even, each additional sale will increase profit by an amount that equals to the
Contribution Margin
80
___ Can be used to determine how much changes in volumes affect costs and profits
Break-even analysis
81
A simple formula for determining a firm's break-even point is
Fixed Costs divided by Contribution margin BE= FC (P-VC)
82
The contribution margin is defined as
price per unit - variable cost per unit
83
Assuming that the break-even point has been surpassed, a firm that utilizes a high degree of operating leverage will produce __ profits than a firm that utilizes a lower degree of operating leverage
greater
84
Break-even analysis is used to answer which of the following questions
how much will changes in volume affect profit
85
Contribution margin is
selling price per unit minus variable cost per unit
86
Break-even analysis ignored the following
the opportunity cost of investing in capital assets, the timing of cash flows, cash flow and uses only accounting income
87
The following can lead to an inaccurate break-even analysis
income recorded or accrual basis
88
Using cash break-even analysis, what is deducted from fixed costs to arrive at the break-even point?
Depreciation because its a non-cash expense
89
When management expects an economic downturn it may be in the firms best interest to undertake a (n) __ plan
conservative
90
In accounting and finance, depreciation represents
an outlay of cash
91
in order to determine the amount of noncash items to remove from the cash break-even point (subtract from fixed costs), a company should do what?
actual weekly or monthly cash budgets
92
Most of te break even analysis is based on what type of accounting
accrual
93
The degree of operating leverage can be defined as the (formula)
percent change in operating income divided by the percent change in unit volume
94
besides depreciation, what other noncash items can be adjusted when using cash break-even analysis
accounts receivables account payable
95
A decrease in % change in unit volume will lead to and a__ in DOL
Increase
96
Cash break-even analysis is helpful in analyzing the __ outlook of the firm, particularly when the firm may be in trouble
short-term
97
the higher a firm's degree of operating leverage, the greater the increase in income as
volume expands
98
An increase in % change in unit volume leads to an __ in DOL
Decrease
99
The degree of operating leverage is much greater for the __ firm
leveraged
100
At high levels of operation, the potential profit for a firm that is highly leverage is ___ compared to those of a firm that is not highly leveraged
Relatively the same
101
Calculate the degree of operating leverage, given a contribution margin of $90,000 and EBIT of $30,000
3
102
A decline in % change in unit volume will lead to __ in DOL
Increase
103
At high levels of operation, the profit potential for a firm that is NOT highly leveraged is __ compared to that of a highly leveraged firm
Relatively small
104
Calculate the degree of operating leverage given a contribution margin of $100,000 and EBIT of $25,000
4
105
Following are the limitations of operating leverage analysis
the analysis focuses on a limited time period, the analysis assumes linear function for revenues as volume changes, and the analysis does not account for the timing of the cash flow
106
Financial leverage is defined as
the amount of debt used in the capital structure of the firm
107
Debt and equity are methods used to
finance a business
108
Operating leverage analysis is
nonlinear
109
True or false: a debt/equity ratio of 0.20 would mean that the firm has more debt to equity
False debt-equity ratio means 20% in debt and 80% in equity
110
Substantial use of debt will place a large burden on the firm at (high or low)
low
111
Degree of financial leverage is defined as (formula)
percent change in earnings per share divided by percent change in earnings before interest taxes
112
Firms can finance the business using
debt and equity
113
An EBIT level of $40,000 and a DFL of 2, a 1 percent increase in earnings will produce a __ percent in earnings per share
2%
114
The EBIT/EPS indifference point for two financing points occurs when the following for he two plans equal each other
Net Income per share
115
Calculate the EBIT (indifference point) given shares outstanding for plan A is $20,000 and plan B is 10,000. Also, interest costs for plan A is $10,000 and plan B is 6,000
$2,000
116
A company has sales of $2,250,000 (30,000 units at $75 each) , variable costs of $25 per unit, fixed costs of $400,000, interest expense of $100,000 and a tax rate of 30%. What is the company's degree of financial leverage
1.1 (30 k x (75-25))-400 k
117
The __ indifference point for two financing points occurs when the following for the two plans equal each other
ebit/eps
118
Calculate the EBIT(indifference point) given shares outstanding for plan A is 30,000 and plan B is 10,000. Also, interest costs for plan A is $15,000 and plan B is $6,000
$1,500
119
The use of debt is recommended for firms in industries that
are operating under positive economic conditions, offer some degree of stability, and are in a postive stage of growth
120
Borrowings to buy out another company are often financed with that type of bond
Junk
121
Calculate the EBIT ( indifference point ) given shares outstanding for plan A is 20,000 and plan B is 10,000. Also, interest costs for plan A is $10,000 and plan B is $6,000
$2,000
122
Debt financing can be advantageous to a firm, but only up to a point
True (can allow a firm to expand operations within out spreading ownerships)
123
Operating and financial leverage enables a firm to magnify its
returns
124
Leveraged buyout can lead to __ in the risk of the corporation which is being acquired
Increase
125
The degree of combined leverage is the (formula)
percent change in earnings per share dvided by the percent change in sales
126
A company has sales of $1,200,000 (20,000 units at a price of $60 each), variable costs of $30 per unit, fixed costs of $400,000, interest expense of $50,000, and a tax rate of 30%. What is the company's degree of operating leverage
4
127
Maximum leverage can be achieved through the use of __ leverage
Combined
128
The degree of combined leverage is the (formula)
percent change in earnings per share divided by the percent change in sales
129
Company A and B both have sales of $1,200,000 (20,000 units at a price of $60 each). Company A has variable costs of $30 per unit, fixed costs totaling $400,000, and interest of $50,000. Company B has variable costs of $20 per unit, fixed costs totaling $600,000, and interest of $25,000. Which company has the greatest degree of combined leverage
Company B
130
Self liquidating assets are
assets intended to be sold at the end of a certain time period.
131
If a ocmpany utilizes level production
inventory will change with change in sales, if sales increase inventory will decrease, and if sales decrease inventory will increase
132
What part of the supply chain is most likely to use point of sale terminals
Retail
133
In developing a sales forecast, total projected sales (indollars) can be calculated by multiplying the
unit sellingp price by the number of units forecast to be sold
134
If a company is using level production and sales are steadily increasing above the forecast amounts
the level of production should be increased
135
Assume that current assets and current liabilities change at the same rate as change in sales. Therefore, if sales increase by 10%, then
Current liabilities will increase by 10%, current assets will increase by 10%
136
If sales increase while production stays level
inventory will decrease
137
A point of sale terminal
provides information to change purchase orders or production schedules, recrods the item and quantity sold
138
Cash receipts include
cash sales, accounts receiveable collections
139
Under level production, a simple way to determine the number of units to be produced per month would be to
divide the annual production (in units) by 12
140
Generally, when a company's sales increase, the affect on temporary and permanent assets is
both increase i
141
Managers __ monitor the state of current assets to ensure liquidity
Continually
142
What part of the supply chain is most likely to use point of sale terminals
Retail
143
Management can improve cash flow by __ its inventory holding
decreasing
144
Cash flow is determined by
subtracting cash payments from cash receipts
145
Liquidity refers to the degree to which a financial asset can be converted into cash at a fair __ value
market
146
Normally it is most appropriate to finance permanent current assets with
retention of retained earnings, increase in long term debt, and increase in stock
147
Some advantages of using level production
equipment may be used more efficiently, overtime may be avoided for production workers, production schedules may be smoother
148
Delaying payments to suppliers will have what effect on the cash conversion cycle
decrease
149
__ is matching of the maturities of assets and liabilities to reduce or cover risk
Hedging
150
The high point in the amount of inventory for a reasonable business using level production would usually be
the last month production exceeds sales
151
Place the following in order
Prepare the sales forecast, 2. Prepare the cash receipts schedule 3. prepare the cash payments schedule 4. prepare the cash budget
152
If a company uses long term debt to finance part of short term needs, it is likely
the company will have adequate capital, more interest wil be paid on debt
153
Some disadvantages of level productiona re
inventory levels may build up during period of slow sales, inventory levels will vary with sales, the total cost of carrying inventory may be higher if sales slow down
154
the use of __ term capital to cover short-term financing needs is known as a conservative approach
long
155
Hedging can lead to __ in risk
decrease
156
Short term financing is a __ approach
risky
157
Normally it is most appropriate to finance seasonal increases in current assets with an
increase in short term liabilities
158
long term financing is a __ approach
conservative
159
As a rule, during "tight money" periods
rates on short term loans may become very high, short term funds may be difficult to find
160
The term structure of interest rates has (or may) have what effect on short versus long term financing decisions
it effects the ratio
161
short term financing can lead to __ lidquidity ratios
lower
162
The term structure of interest rates refers to
the yield curve
163
A risk of using short term funds to finance operations is
if a tight money situation occurs, loans may be hard to obtain, if a tight money situation occurs, interest rates may increase
164
Companies use ___ financing to provide funds for operations
all types of
165
The yield curve for both corporate and government securities changes daily to reflect current competitive conditions in the
money market, strength of the Canadian dollar, expected inflation, capital market
166
The yield curve is determined by
the different mature dates of securities with equal risk
167
The __ of the yield curve shows the beliefs based on new information that market participant have above current interest rates
shape
168
Under the liquidity premium theory, it is likely ___ will demand the highest interest rate
long term bonds
169
The shape of the yield curve is the result of buying and selling of __ market participants
bond
170
under the market segmentation theory, commercial banks would normally prefer
short term loans
171
the shape of the yield curve is
of interest
172
According to the liqduity premium theory
long term rates are higher than short term, short term securities have greater liquidity
173
Under te expectations theory, the interest rate on a 4 year loan will be
the average of the rates on 4 one year loans
174
Under the market segmentation theory mortgage lenders would normally prefer
intermediate term loans
175
the normal slope of the yield curve is
upward
176
Under the expectation theory
long term rates are based on the average of short term rates
177
The downward sloping yield curve is called what
Inverted
178
The yield curve for interest rates can have what type of slope
downward, upward, and flat
179
Bank of Canada is likely to __ interest rates to cool an overhead economy
increase
180
Downward sloping yield curve is also known as
inverted yield curve
181
Which type of interest rate is more volitile
Short term
182
Bank of Canada is likely to __ interest rates to heat up a weak economy
lower
183
A (n) __ value approach will identify the possible results for the firm under differing economic conditions, as well as assign a probability to the occurrence of each economic condition
Expected
184
Financial insitutions provide market assessments and comments on a __ basis through their websites
daily
185
Short term interest rates are more volatile than long term rates
True.
186
If a firm makes decisions based on expected value, it is likely to always exceed expectations
False
187
Financial institutions, through their economics departments, ___ suggest the future direction of interest rates
Regularly
188
Since 1992, the percentage of net working capital divided by sales, for large Canadian nonfinancial companies, has trended
lower
189
An aggressive firm utilizing short-term financing may be vulnerable to
a credit crunch in which funds become scarce
190
As a rule, an aggresive, risk-oriented firm will use __ financing
short term
191
The percentage of net working capital is calculated by dividing net working capital by
Sales
192
The aggressive, risk-oriented firm in panel 1 of the table borrows __ and maintains relatively __ levels of liquidity, hoping to increase profit
short, low
193
As a rule, a conservative, risk-averse firm will use __ financing
long-term
194
Income can be distorted by factors other than inflation. The most important causes of distortion for inner-industry comparisons are
Timing of revenue receipts and non reoccurring gains of losses
195
How many of the following items are found on the income statement rather than the balance sheet?
Three of these items are found on the income statement (
196
Firm A employs a high degree of operating leverage. Firm B takes a more conservative approach. Which of the following about firm A and firm B is true?
B has a lower break even point but A’s profit grows fast after the break even
197
If a firm has a price of $4.00, variable cost per unit of $2.50, and a break even of 20,000 units, fixed costs are equal to
$30,000
198
If fixed cost decrease while other variables stay constant
Total profit increases
199
A plant relying mostly of manual labour would generally have
More variable costs than fixed
200
If firm a has fixed costs of $20,000, variable cost per unit of $0.50, and a break even point of 5,000 units, the price is
$4.50
201
A highly automated plant would generally have
More fixed costs than variable costs
202
The cash conversion cycle is equal to
Inventory holding period plus average collection period less the accounts payable period
203
The term structure of interest rates is not influenced by
The normal yield cycle
204
If a firm uses long term financing to cover short term needs it is
Assuring itself of having adequate capital always
205
A firm will usually increase the ratio of short term debt to long term debt when
The term structure is inverted and expected to shift down
206
One average level of production is that
Labour and equipment are efficiently used at lower cost
207
If a firm has fixed costs of $20,000, variable cost per unit of $0.50, and a break-even point of 5,000 units, the price is
4.50
208
Accrual based accounting results in income and cash flow being
Différent
