Please answer these 4 questions:

Preference shareholders' rights include *

• repayment of their investment at maturity
• regular interest payments
• receiving a dividend before the common shareholders
• becoming a director of the company
• attending meetings and voting

Genzal is a retail outlet for ladies fashion goods. At the year-end inventory on 31/12/2020, Genzal found that it had goods on hand that had cost $50,000. Genzal expects to sell half the inventory in 2021 for approximately $75,000, but the remainder of the goods is no longer fashionable and would have to be sold at clearance sale prices, realizing no more than $10,000. Assuming that the cost of each inventory item is the same, the inventory in the balance sheet as at 31/12/2020 would be valued at *

• $25,000
• $30,000
• $35,000
• $50,000
• $60,000

Pizza Pizza has cash of $5,000, inventory of $100,000, and accounts receivable of $45,000. Current liabilities are $50,000 and long-term liabilities are $25,000. Which of the following statements is correct? *

• Pizza Pizza is adequately liquid.
• Pizza Pizza is highly illiquid.
• There is insufficient information to determine Pizza Pizzas liquidity.
• Pizza Pizzas liquidity is equal to $100,000.
• Liquidity does not apply to a Pizza Pizza business as it does not have a liquor licence

Monicas Mantles has a strategic objective of offering high quality mantles to discerning customers who are prepared to pay a premium price. The financial section of the balanced scorecard includes % reduction in cost of sales per unit. This is *

• a good thing, as reduced cost of sales increases gross margin % and is in line with strategic objectives
• a bad thing, as reduced cost of sales may increase gross margin %, but it is not in line with strategic objectives
• a good thing, as it enables price reductions and sales volume increases
• a bad thing, as profitability will decline
• neither a good thing or a bad thing