« previous next »

Author Question: The income statement for Simpson, Inc. indicates that tax expense was 30,000. The balance sheet ... (Read 117 times)

itsmyluck

  • Hero Member
  • *****
  • Posts: 546
on: Jul 11, 2018
The income statement for Simpson, Inc. indicates that tax expense was 30,000. The balance sheet
  indicates that taxes payable for the same year increased by 5,000. What amount did Simpson, Inc.
  actually pay in taxes during this year?
 
  A) 20,000
  B) 25,000
  C) 15,000
  D) Cannot be determined without the cash balance

Question 2

A firm that is growing more slowly than its sustainable growth rate may generates excess cash. If the firm chooses to keep the excess cash which of the following is NOT true?
 
  A) Holding on to excess cash may signal OVER utilization of assets.
  B) Holding on to excess cash often is a negative stock signal in that investors interpret the excess cash is a result of no attractive investment alternatives.
  C) Holding on to excess cash may attract unwanted potential investors who are attracted to the excess cash for their own purposes.
  D) Holding on to excess cash may signal UNDER utilization of assets.
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
Buy Test-Bank


brittanywood

  • Sr. Member
  • ****
  • Posts: 355
Reply #1 on: Jul 11, 2018
Answer to Question 1

B

Answer to Question 2

D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Prostaglandins were first isolated from human semen in Sweden in the 1930s. They were so named because the researcher thought that they came from the prostate gland. In fact, prostaglandins exist and are synthesized in almost every cell of the body.

Did you know?

Elderly adults are living longer, and causes of death are shifting. At the same time, autopsy rates are at or near their lowest in history.

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

An example of a medical history sheet to list patient problems. An example of a medical history sheet to list patient problems.
The More Things Change, The More They Say the Same: Dividing the Nation's Income The More Things Change, The More They Say the Same: Dividing the Nation's Income
Income of Adult Children Compared With That of Their Parents Income of Adult Children Compared With That of Their Parents
Material Balance on the process pipe and the separator Material Balance on the process pipe and the separator
Ocean sediment cores preserve a record of ice sheet growth and decay Ocean sediment cores preserve a record of ice sheet growth and decay
Saving Rates by Income Quintile, 2003 Saving Rates by Income Quintile, 2003
Video: Four Giant Convection Cells oF Earth

For a complete list of videos, visit our video library