37.

• Nico Corporation has cost of goods sold of $300,000 and inventory of $30,000, then the inventory turnover is ________ and the average age of inventory is ________.

30; 36.0

36.5; 10

10; 36.5

36.0; 10

The tax deductibility of various expenses such as general and administrative expenses ________.

has an unpredictable effect on their after-tax cost

increases their pretax cost

reduces their after-tax cost

has no effect on their after-tax cost

39.

Under the judgmental approach for developing a pro forma balance sheet, the "plug" figure required to bring the statement into balance may be called the ________.

retained earnings

external financing required

accounts receivable

cash balance

40.

An efficient market is one where ________.

prices of stocks move up and down widely without apparent reason

the price of a security is an unbiased estimate of its true value

prices of stocks remain low for long periods of time

prices of stocks are unaffected by market news