Use the Following Information to Determine the Cash Fixed Costs

question 20

Multiple Choice

Use the following information to determine the cash fixed costs: administrative expenses = $200,000; marketing expenses = $180,000; depreciation expenses = $100,000; and interest expenses = $20,000.

• A)$380,000
• B)$400,000
• C)$480,000
• D)$500,000

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Definitions:

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically corporate or governmental, which include terms related to the amount, interest rate, and maturity date.

Maturity Value

The amount payable to the holder of a financial instrument at its maturity date, often the principal plus any final interest payment.

Owner Relationship

The legal and operational connections and responsibilities between the owner(s) and their business entity.

Short-Term Investments

Investments that are typically held for one year or less, intended for quick gains or temporary cash investment.