12) You want to buy a car on credit for $12,000 at a rate of 5% for 3 years. Create an amortization table of the car loan that shows the portion of interest and principal on each monthly payment. The Total payments are about

Select one:

a. 19,247

b. 12,947

c. 14,249

d. 17,294

Q14 )

Income Statement of Moon Company 2018-19

	2018	2019
Sales	$2,500,000	$2,750,000
Variable costs	1,500,000	1,650,000
Fixed costs	400,000	400,000
EBIT	600,000	700,000
Interest Expense	100,000	100,000
Earnings Before Taxes	500,000	600,000
Taxes (40%)	200,000	240,000
Net Income	300,000	360,000
Less: Preferred Dividends	75,000	75,000
Net Income Available to Common	225,000	285,000
Using the above income statement of Moon Company, the degree of
financial leverage for year 2018 is about 1.8

Select one:

True

False