Stone roses co. balance sheet for dec. 31, 1999 cash $50 accounts payable $100 inventory $150 notes payable 100 fixed assets $600 long-term debt 350 equity 250 total assets $800 total liabilities & equity $800 income statement for 1999 sales $800 costs 600 ebt $200 taxes (34%) 68 net income $132 suppose the firm retains 28% of earnings, while assets and costs maintain a constant percentage of sales. if the firm is producing at full capacity, what is the internal growth rate? 1.9% 4.8% 10.1% 13.5% 17.3%

What is an example of a good stock to buy during economic expansion? a) cyclical stock b) defensive stock c) income stock d) bond

You are chairman of the board of a successful technology firm. there is a nominal federal corporate tax rate of 35 percent, yet the effective tax rate of the typical corporation is about 12.6%. your firm has been clever with use of transfer pricing and keeping money abroad and has barely paid any taxes over the last 5 years; during this same time period, profits were $28 billion. one member of the board feels that it is un-american to use various accounting strategies in order to avoid paying taxes. others feel that these are legal loopholes and corporations have a fiduciary responsibility to minimize taxes. one board member quoted what the ceo of exxon once said: “i’m not a u.s. company and i don’t make decisions based on what’s good for the u.s.” what are the alternatives? what are your recommendations? why do you recommend this course of action?

Kimberly has been jonah in preparing his personal income tax forms for a couple of years. jonah's boss recommended kimberly because she had done a good job setting up the company's new accounting system. jonah is very satisfied with kimberly's work and feels that the fees she charges are quite reasonable. kimberly would be classified as a(n) (a) independent auditor (b) private accountant (c) public accountant (d) accounting broker