Dave's Mirror Company Expects to Sell $1,000,000 Worth of Mirrors

question 6

Multiple Choice

Dave's Mirror Company expects to sell $1,000,000 worth of mirrors and to produce $1,250,000 worth of mirrors in the coming year. The company purchases $300,000 worth of new equipment during the year. Sales for the year turn out to be $900,000. Actual investment by Dave's Mirror Company equals ________ and planned investment equals ________.

• A)$250,000; $150,000
• B)$300,000; $200,000
• C)$550,000; $450,000
• D)$650,000; $550,000

---

Definitions:

Debt

Debt is an amount of money borrowed by one party from another, under the condition that it is to be repaid at a later date, usually with interest.

Restrictive Covenants

Provisions in a contract or bond agreement that limit certain actions of the borrower, to protect the interests of the lender.

Corporate Taxes

Taxes imposed on the income or profit of corporations by the government.

Personal Taxes

Taxes imposed on individuals or households based on their income, investments, or other personal activities.