Table 14.1 Irish Air Services Has Determined Several Factors Relative to Its

question 225

Multiple Choice

Table 14.1
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 long-term funds.
(e) The firm's monthly current,fixed,and total asset requirements for the previous year are summarized in the table below:
-The firm's monthly permanent funds requirement is ________.(See Table 14.1)

• A)$100,000
• B)$57,500
• C)$140,000
• D)$157,500

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Definitions:

Liabilities

Financial obligations or debts owed by a business or individual to others, which must be paid in the future.

Journalize

The act of recording business transactions in the chronological order of occurrence within the accounting journals.

Transactions

Economic activities or events that affect the financial position of a company, recorded in its accounting records.

Acquisition Costs

The total cost incurred to acquire an asset or service, including the purchase price and any additional costs necessary to bring the asset into working condition.