Emery Corporation Balance Sheet Income Statement
Assets:
Cash $250,000 Sales (all credit) $8,000,000
Accounts receivable 450,000 Cost of goods sold (4,000,000)
Inventory 500,000 Operating expense (2,900,000)
Net fixed assets 2,100,000 Interest expense (150,000)
Total assets $3,300,000 Income taxes (380,000)
Net income $570,000
Liabilities and owners' equity:
Accounts payable $100,000
Notes payable 450,000
Long-term debt 1,050,000
Owners' Equity 1,700,000
Total liabilities and
owner's equity $3,300,000
Based on the information in Table, the debt ratio is:.
A) 13.75%.
B) 25.80%.
C) 33.33%.
D) 18.59%.
What was the average annual rate of return on long-term corporate bonds during the period 1926 to 2008?
A) 6.5%.
B) 8.3%.
C) 5.9%.
D) 6.2%.

Aprice ceiling is “binding” if the price ceiling is set below the equilibrium price. suppose that the equilibrium price is $5. if a price ceiling is set at $6, this will not affect the market in any way since $5 remains a legally allowable price (since $5 < $6). a price ceiling of $6 is called a “non-binding” price ceiling. on the other hand, if the price ceiling is set at $4, the price ceiling is “binding” because the natural equilibrium price is $5 but that is no longer allowed. what happens when there is a binding price ceiling? at a price below the equilibrium price, quantity demanded exceeds quantity supplied. there is a shortage. normally, price increases eliminate shortages by increasing quantity supplied and decreasing quantity demanded. in this case, however, price increases are not allowed past the price ceiling. we therefore predict that the observed market price will be right at the price ceiling and there will be a permanent shortage. the observed quantity bought and sold will be dictated by the quantity supplied at the price ceiling. although consumers would like to buy more, there are no more units for sale

You are evaluating two different silicon wafer milling machines. the techron i costs $285,000, has a three-year life, and has pretax operating costs of $78,000 per year. the techron ii costs $495,000, has a five-year life, and has pretax operating costs of $45,000 per year. for both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $55,000. if your tax rate is 24 percent and your discount rate is 11 percent, compute the eac for both machines.

Use the information below to answer the following question. the boxwood company sells blankets for $60 each. the following was taken from the inventory records during may. the company had no beginning inventory on may 1. date blankets units cost may 3 purchase 5 $20 10 sale 3 17 purchase 10 $24 20 sale 6 23 sale 3 30 purchase 10 $30 assuming that the company uses the perpetual inventory system, determine the gross profit for the month of may using the lifo cost method.