PLEASE ANSWER ALL 4 MULTIPLE CHOICE QUESTIONS

Use the following information to answer this question. Windswept, Inc. Year 2 Income Statement ($ in millions). Net sales $ 9,920 Less: Cost of goods sold 8,140 Less: Depreciation 490 Earnings before interest and taxes $ 1,290 Lest: Interest paid 120 Taxable income $ 1,170 Less: Taxes 410 Net income $ 760 Windswept. Inc. Year 1 and Year 2 Balance Sheets ($ in millions). Year 1 Year 2 Cash $ 300 $ 330 Accounts payable Accounts rec. 1,140 1,040 Long-term debt Inventory 2,030 1,790 Common stock Total $ 3,470 $ 3,160 Retained earnings Net fixed assets 3,590 4,140 Total assets $ 7,060 $ 7,300 Total liab. & equity Year 1 $ 1,670 1,190 $ 3,520 680 Year 2 $ 1,935 1,345 $ 3,090 930 $ 7,060 $ 7,300 What is the days' sales outstanding? (use Year 2 values, not an average) 86.77 days 38.27 days 37.74 days 52.00 days 40.11 days Based on the table below, what is the average tax rate (nearest %) for a firm with taxable income of $260,000? Marginal Tax Rate Taxable income Portion Subject to that Rate 15% 0-$50,000 25% $50,001-$75,000 34% $75,001-$100,000 39% $100,001-$335,000 27% 30% 31% 33% 34% The option that is forgone so that an asset can be utilized by a specific project is referred to as which one of the following? Salvage value. Wasted value. Sunk cost. Opportunity cost. Erosion 5.5 points Use the table below to answer this question MACRS 5-year property Year Rate 20.00 2 32.00 3 19.20% 4 5 11.52 6 5.76 Ronnie's Custom Cars purchased some fixed assets two years ago for $40,000. The assets are classified as Syear property for MACRS. Ronnie is considering selling these assets now so he can buy some newer fixed assets which utilize the latest in technology, Ronnie has been offered $22,000 for his old assets. What is the after tax salvage value if he accepts the offer and tax rate is 34 percent $18.436.80 11.52 521,048.00 $16,870,08 $19,200.00 $22,000.00