Assume US GAAP to answer this question. In 2017, $2 million in wages were earned and no cash wages were paid. In 2018, $8 million in wages were earned and $7 million in cash wages were paid. Cash wages were used to first pay wages earned in 2017 with the remainder used to pay wages earned in 2018.Any earned but unpaid wages will be paid during the first quarter of 2019.Using only the information provided, which of the following statements is most accurate?A. Liabilities increased by $1.0 million in 2018B. Liabilities increased by $3.0 million in 2018C. Assets decreased by $5.0 million in 2018D. Retained earnings decreased by $10.0 million in 2018E. Retained earnings decreased by $7.0 million in 2018

Ronald works for a small biotech firm. when the firm presents the results of its clinical trials to the fda, ronald realizes that the results are not accurate. he reports this to the fda. ronald is a(n)

In the supply-and-demand schedule shown above, at the lowest price of $50, producers supply music players and consumers demand music players.

Shrieves casting company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by sidney johnson, a recently graduated mba. the production line would be set up in unused space in the main plant. the machinery’s invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. the machinery has an economic life of 4 years, and shrieves has obtained a special tax ruling that places the equipment in the macrs 3-year class. the machinery is expected to have a salvage value of $25,000 after 4 years of use. the new line would generate incremental sales of 1,250 units per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. each unit can be sold for $200 in the first year. the sales price and cost are both expected to increase by 3% per year due to inflation. further, to handle the new line, the firm’s net working capital would have to increase by an amount equal to 12% of sales revenues. the firm’s tax rate is 40%, and its overall weighted average cost of capital, which is the risk-adjusted cost of capital for an average project (r), is 10%. define “incremental cash flow.” (1) should you subtract interest expense or dividends when calculating project cash flow?