Corporation Is Preparing Its Budgeted Income Statement for the Month

question 8

Multiple Choice

Corporation is preparing its budgeted income statement for the month of August. Budgeted sales are $18,000. Cost of goods sold is twice the amount of operating costs, and operating costs plus cost of goods sold equals 40% of net income. Return on sales (net income / sales) is anticipated to be 50%. TNR does not have any nonoperating items on its income statement.
TNR's budgeted operating costs are:

• A) $3,600
• B) $2,400
• C) $1,200
• D) None of the above

Learn about the factors determining the level of real interest rates.

Identify the components of holding-period return (HPR) for stocks and bonds.

Understand the impact of changes in supply and demand for loans on interest rates.

Recognize the concepts of risk premium and how it influences investment decisions.