Author Question: A firm has just ended its calendar year making a sale in the amount of 200,000 of merchandise ... (Read 63 times)

MGLQZ · **on:** Jul 10, 2018

A firm has just ended its calendar year making a sale in the amount of 200,000 of merchandise purchased during the year at a total cost of 150,500.

Although the firm paid in full for the merchandise during the year, it is yet to collect at year end from the customer. The possible problem this firm may face is ________.
A) high taxes
B) lack of cash flow
C) inability to receive credit
D) high leverage

Question 2

Xiao Li wishes to accumulate 50,000 by the end of 10 years by making equal annual end-of-year deposits over the next 10 years. If Xiao Li can earn 5 percent on her investments, how much must she deposit at the end of each year?

A) 3,975
B) 6,475
C) 5,000
D) 4,513