whitewater co. is a u. s. company with sales to canada amounting to c$8 million. its cost of materials attributable to the purchase of canadian goods is c$6 million. its interest expense on canadian loans is c$4 million. based on these exact figures, the dollar value of whitewater's "earnings before interest and taxes" would if the canadian dollar appreciates; the dollar value of whitewater's cash flows would if the canadian dollar appreciates.

Agovernment receives a gift of cash and investments with a fair value of $200,000. the donor specified that the earnings from the gift must be used to beautify city-owned parks and the principal must be re-invested. the $200,000 gift should be accounted for in which of the following funds? a) general fund b) private-purpose trust fund c) agency fund d) permanent fund

Peppy knows a lot about marketing, but not much about the legal or financial aspects of starting a new business. he wants to consult with a lawyer and accountant, but his budget is tight with all of the expenses involved in getting peppy's pizzazzeria up and running. peppy should: trust his basic instincts and try to put it together without the advice of lawyers and accountants. delay talking with a lawyer and accountant until the business has established a positive cash flow for at least one year. immediately hire full-time lawyers and accountants for his staff. consult with a lawyer and accountant even though the budget is tight.

Describe what fixed costs and marginal costs mean to a company.