Muscarella Inc

question 14

Multiple Choice

Muscarella Inc.has the following balance sheet and income statement data: The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the industry average, 2.70, without affecting either sales or net income.Assuming that inventories are sold off and not replaced to get the current ratio to the target level, and that the funds generated are used to buy back common stock at book value, by how much would the ROE change?

• A)4.28%
• B)4.50%
• C)4.73%
• D)4.96%
• E)5.21%

Recognize the role and function of the placenta in supporting fetal development.

Understand the early development of sensory responsiveness in fetuses.

Understand different theories explaining social movements and collective action.

Identify factors that lead to the emergence of social movements.

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Definitions:

Subchapter S Corporation

A corporation that meets specific Internal Revenue Code requirements and elects to be taxed as a pass-through entity, avoiding double taxation on its income.

Domestic Corporation

A company that is incorporated under the laws of the country in which it is doing business.

Accrual Basis

An accounting method that records income when earned and expenses when incurred, regardless of when the cash is received or paid.

Average Annual Gross Receipts

An average of a business's total gross income over a specified period, often used to determine tax reporting requirements or eligibility for small business tax concessions.