If a firm's financial managers successfully meet their primary goal, then the firm's: debts will exceed its equity. market value of equity will exceed its book value of equity. net working capital will exceed its long-term debt. book value will exceed its market value. equity will exceed its assets.

Right medical introduced a new implant that carries a five-year warranty against manufacturer’s defects. based on industry experience with similar product introductions, warranty costs are expected to approximate 2% of sales. sales were $8 million and actual warranty expenditures were $42,750 for the first year of selling the product. what amount (if any) should right report as a liability at the end of the year?