Irish Air Services Has Determined Several Factors Relative to Its

question 264

Multiple Choice

Irish Air Services has determined several factors relative to its asset and financing mix. A. The firm earns 10 percent annually on its current assets.
B. The firm earns 20 percent annually on its fixed assets.
C. The firm pays 13 percent annually on current liabilities. D. The firm pays 17 percent annually on longterm funds.
E. The firm's monthly current, fixed and total asset requirements for the previous year are summarized in the table below:
$$\begin{array} { l c r r } \text { Month } & \begin{array} { c } \text { Current } \\\text { Assets }\end{array} & \begin{array} { c } \text { Fixed } \\\text { Assets }\end{array} & \begin{array} { c } \text { Total } \\\text { Assets }\end{array} \\\hline \text { January } & \$ 45,000 & \$ 100,000 & \$ 145,000 \\\text { February } & 40,000 & 100,000 & 140,000 \\\text { March } & 50,000 & 100,000 & 150,000 \\\text { April } & 55,000 & 100,000 & 155,000 \\\text { May } & 60,000 & 100,000 & 160,000 \\\text { June } & 75,000 & 100,000 & 175,000 \\\text { July } & 75,000 & 100,000 & 175,000 \\\text { August } & 75,000 & 100,000 & 175,000 \\\text { September } & 60,000 & 100,000 & 160,000 \\\text { October } & 55,000 & 100,000 & 155,000 \\\text { November } & 50,000 & 100,000 & 150,000 \\\text { December } & 50,000 & 100,000 & 150,000\end{array}$$
-The firm's annual profits on total assets for the previous year was___________

• A) $23,625
• B) $21,500
• C) $20,000
• D) $25,750

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Definitions:

Union Forces

The army and military resources of the United States (the North) during the American Civil War, battling against the seceding Confederate states.

Confederate Forces

Military forces representing the Confederate States of America during the American Civil War (1861-1865), primarily composed of volunteers and conscripts fighting for southern independence.

Indian Wars

A series of conflicts and battles between European settlers or the U.S. government and the indigenous peoples of North America, spanning from the early colonial period to the late 19th century.

Civil War

The Civil War was a conflict fought in the United States from 1861 to 1865, primarily over the issues of slavery and states' rights, resulting in the preservation of the Union.