Explanation:
Been the IT director at Attaway Airlines, it will be important to prepare a draft of the advantages and the level of difficulties the new computerized reservation system from an IT perspective.
However, the ultimate goal is not to simply win arguments, but to explain and consider the facts from both the Vice president of finance and the Marketing Manager.
Suppose that a small company is thinking of putting plants in their lobby for employees to view and enjoy. Since the plants are to be viewed by employees, the plants are non-excludable (it is infeasible to move a plant each time a specific individual walks by) and non-rival in consumption (if one worker looks at the plant, it does not prevent another from doing so as well).
The company employs three workers: Robin, Tyler, and Ray. The company is thinking about buying up to three plants, and wants to know how much workers would enjoy each plant. For Robin, the first plant has a benefit of $47 per day, the second plant has a benefit of $37 per day, and the third plant has a benefit of $13 per day. For Tyler, the first has a benefit of $41 per day, the second has a benefit of $28 per day, and the third has a benefit of $6 per day. For Ray, the first plant has a benefit of $31 per day, the second has a benefit of $19 per day, and the third has a benefit of $2 per day.
Given that no one else will see the plants, no one else values the plants in the lobby.
1) What is the marginal social benefit of the first?
2) What is the marginal social benefit of the second plant?
3) What is the marginal social benefit of the third plant?
Answer:
Marginal Social Benefit = The Sum of all individual Benefit.
The Marginal social benefit of the first plant = Sum of first plant benefit of Robin, Tyler, and Ray
1. The marginal social benefit of the first = $47 + $41 + $31 = $119
2. The marginal social benefit of the second = $37 + $28 + $19 = $84
3. The marginal social benefit of the third = $13 + $6 + $2 = $21
The following information has been taken from the ledger accounts of Bridgeport Corporation.
Total income since incorporation $292,000
Total cash dividends paid 55,000
Total value of stock dividends distributed 31,000
Gains on treasury stock transactions 16,000
Unamortized discount on bonds payable 29,000
Determine the current balance of retained earnings.
Answer:current balance of retained earnings=$206,000
Explanation:
Net Retained Earnings = Total Income since Incorporation−
Total Cash Dividend Paid− Value of Stock Dividend distributed
Where
cash dividends distributed among the stakeholders= $55,000
value of stock dividends distributed = $31,000
Total Dividend Distributed = $86,000
Net Retained Earnings = $292,000 -($86,000)=$206,000
nformation taken from a Sears, Roebuck and Company annual report follows. December 31 Long-Term Debt ($ in millions) Year 2 Year 1 7% debentures, $300 million face value, due Year 11, effective rate $14.6% $ 188.6 $ 182.7 Zero coupon bonds, $500 million face value, due Year 8, effective rate 12.0% 267.9 239.2 Participating mortgages, $850 million face value, due Year 5, effective rate 8.7%, collateralized by Sears Tower and related properties 834.5 833.9 Various other long-term debt 12,444.2 16,329.2 Total long-term debt $ 13,735.2 $ 17,585.0 Required: How much interest expense did the company record during Year 2 on the 7% debentures
Answer:
The interest expense company recorded during Year 2 on the 7% debentures is $27,535,600
Explanation:
As the interest expense is different from the interest payment made on the debenture. It also includes some other costs. Effective interest rate includes the effects of all related costs of debentures. So the interest expense of a debenture will base the effective interest rate of the debenture.
We can calculate the Interest expense on 7% debtures as below
Interest Expense = Value of Debenture x Effective interest rate
Interest Expense = $188,600,000 x 14.6%
Interest Expense = $27,535,600
Recently, the owner of Martha's Wares encountered severe legal problems and is trying to sell her business. The company built a building at a cost of $1,100,000 that is currently appraised at $1,300,000. The equipment originally cost $580,000 and is currently valued at $327,000. The inventory is valued on the balance sheet at $270,000 but has a market value of only one-half of that amount. The owner expects to collect 97 percent of the $155,200 in accounts receivable it is owed. The firm has $11,100 in cash and owes a total of $1,400,000. The legal problems are personal and unrelated to the actual business. What is the market value of this firm?
Answer:
$523,644
Explanation:
The computation of the market value of this firm is shown below;
Asset at realizable value amount ($)
Building appraised value $1,300,000
Equipment current value $327,000
Inventory Market value ($270000 ÷ 2) $135,000
Accounts receivables ($155,200 × 97%) $150,544
Cash $11,100
Total assets gross available $1,923,644
(-) Owings -$1,400,000
The Market value of the firm $523,644
You would be making a wise decision if you chose to:________.
a. base decisions regarding investments on effective rates and base decisions regarding loans on annual percentage rates.
b. assume all loans and investments are based on simple interest.
c. accept the loan with the lower effective annual rate rather than the loan with the lower annual percentage rate.
d. invest in an account paying 6 percent, compounded quarterly, rather than an account paying 6 percent, compounded monthly.
e. ignore the effective rates and concentrate on the annual percentage rates for all transactions.
Answer:
c. accept the loan with the lower effective annual rate rather than the loan with the lower annual percentage rate.
Explanation:
In the above scenario it will be a good financial decision to choose a loan with lower effective rate than the one with lower percentage rate.
Effective rate is defined as the real interest rate on a loan or the actual amount that is to be repaid annually on a loan. It gives a truer picture of cost of borrowing money.
Percentage rate is interest paid on a loan expressed as a percentage of the total amount collected. It usually includes various fees and charges collected by the lender. So it is not a true reflection of the cost of borrowing
Answer:
c. accept the loan with the lower effective annual rate rather than the loan with the lower annual percentage rate.
Explanation:
The effective annual rate is the actual rate of interest that you will have to paid on the loan. The effective annual rate takes into account the compounding interest over the loan's period of time.
An annual percentage rate can be either nominal (without taking compounding into account), or effective. For this reason, to make sure that you are making the most rational decision, you should take the loan with the lower effective annual rate, because the lower annual percentage rate may be either nominal or effective.
Item8 Time Remaining 37 minutes 54 seconds00:37:54 Item 8Item 8 Time Remaining 37 minutes 54 seconds00:37:54 Which of the following statements is true of pay ranges? Multiple Choice They usually lead to an increase in employee turnover. They are flexible enough to deal with differences in quality but not with the productivity or value of these quality variations. They reflect the differences in performance or experience that an employer wishes to recognize with pay. They cause employees to believe that their compensation cannot increase in the same job.
Answer:
They reflect the differences in performance or experience that an employer wishes to recognize with pay.
Explanation:
A pay range is a boundary that sets the minimum and maximum amount of a specific pay grade.
Wetzel Company has the following accounts and balances at the end of the fiscal year: Long−Term Notes Payable $150,000 Accounts Receivable $30,000 Accounts Payable $41,000 Building $55,000 Cash and Cash Equivalents $38,000 Salaries Expense $20,500 Common Stock $22,000 Interest Payable $4,500 Land $43,000 Short−term Investments $30,000 Income Taxes Payable $10,000 Equipment $59,500 Supplies $25,000 Service Revenue $99,000 Supplies Expense $38,000 Utilities Expense $28,500 Income Tax Expense $25,000 What is the total amount of liabilities at the end of the year?
Answer:
$205,500
Explanation:
The computation of the total amount of liabilities at the end of the year is shown below:-
The Total amount of liabilities at the end of the year is
= Long−Term Notes Payable + Accounts payable + Interest payable + Income tax payable
= $150,000 + $41,000 + $4,500 + $10,000
= $205,500
Therefore for computing the total amount of liabilities at the end of the year we simply applied the above formula.
g Cupola Awning Corporation introduced a new line of commercial awnings in 2021 that carry a two-year warranty against manufacturer’s defects. Based on their experience with previous product introductions, warranty costs are expected to approximate 3% of sales. Sales and actual warranty expenditures for the first year of selling the product were: Sales Actual Warranty Expenditures $5,800,000 $51,000 Required: 1. Does this situation represent a loss contingency? 2. Prepare journal entries that summarize sales of the awnings (assume all credit sales) and any aspects of the warranty that should be recorded during 2021. 3. What amount should Cupola report as a liability at December 31, 2021?
Answer:
1. Does this situation represent a loss contingency?
since warranty liabilities are both probable and can be measured, yes, they are considered loss contingencies
2. Prepare journal entries that summarize sales of the awnings (assume all credit sales) and any aspects of the warranty that should be recorded during 2021.
to record sales revenue
Dr Accounts receivable 5,800,000
Cr Sales revenue 5,800,000
to record warranty liability
Dr Warranty expense 174,000
Cr Warranty liability 174,000
warranty liability = $5,800,000 x 3%
to record actual warranty expenditures
Dr Warranty liability 51,000
Cr Cash/inventory/wages payable 51,000
3. What amount should Cupola report as a liability at December 31, 2021?
Warranty liability account's balance on December 31, 2021 = $174,000 - $51,000 = $123,000
The most recent financial statements for Alexander Co. are shown here: Income Statement Balance Sheet Sales $45,000 Current assets $70,470 Long-term debt $48,600 Costs 28,800 Fixed assets 38,880 Equity 60,750 Taxable income $16,200 Total $109,350 Total $109,350 Taxes (23%) 3,726 Net income $12,474 Assets and costs are proportional to sales. The company maintains a constant 28 percent dividend payout ratio and a constant debt-equity ratio. What is the maximum increase in sales that can be sustained assuming no new equity is issued
Answer:
$7,808
Explanation:
Calculation for the maximum increase in sales that can be sustained assuming no new equity is issued
First step is to calculate for the return on equity using this formula
Return On Equity = Net income / Equity
Let plug in the formula
Return On Equity=$12,474 / $60,750
Return On Equity= 20.53%
Second step is to find the retention ratio using this formula
Retention ratio= 1 - Dividend payout ratio
Let plug in the formula
Retention ratio= 1 - 0.28
Retention ratio= 0.72
Third step is to find the sustainable growth rate using this formula
Sustainable growth rate= (ROE × b) / [1 - (ROE × b)]
Let plug in the formula
Sustainable growth rate= ( 0.2053x 0.72 ) / [ 1 - ( 0.2053x 0.72 ) ]
Sustainable growth rate=0.147816/1-0.147816
Sustainable growth rate= 0.147816/0.852184
Sustainable growth rate=17.35%
Therefore the maximum dollar increase in sales is
Maximum dollar increase= $ 45,000 x 0.1735
Maximum dollar increase= $7,808 Approximately
Therefore the maximum dollar increase in sales will be $7,808
Note:28%-100% will give us 72%
Assume selected financial data for Sun Health Group and Select Medical Corporation, two companies in the health-care industry, are as follows: ($ in millions) Net Sales Beginning Accounts Receivable Ending Accounts Receivable Sun Health $ 3,630 $ 300 $ 287 Select Medical 3,940 499 438 Required: 1-a. Calculate the receivables turnover ratio and average collection period for Sun Health and Select Medical. (Round Average accounts receivable to 1 decimal place. Enter your answers in millions.)
Answer and Explanation:
The computation of receivables turnover ratio and average collection period for Sun Health and Select Medical is shown below:-
For Sun health
Accounts Receivables Turnover Ratio = Net Sales ÷ Average Accounts Receivables
= Net Sales ÷ ((Accounts Receivables at the beginning + Accounts Receivables at the end) ÷ 2)
= $3,630 ÷ (($300 + $287) ÷ 2)
= $3,630 ÷ 293.5
= 12.4 times
Average Collection Period = Number of days in a year ÷ Accounts Receivables Turnover Ratio
= 365 ÷ 12.37 times
= 29.5 days
For Sun medical
Accounts Receivables Turnover Ratio = Net Sales ÷ Average Accounts Receivables
= Net Sales ÷ ((Accounts Receivables at the beginning + Accounts Receivables at the end) ÷ 2)
= $3,940 ÷ (($499 + $438) ÷ 2)
= $3,940 ÷ 468.5
= 8.4 times
Average Collection Period = Number of days in a year ÷ Accounts Receivables Turnover Ratio
= 365 ÷ 8.41 times
= 43.4 days
upine Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours 32,700 Total fixed manufacturing overhead cost $ 294,300 Variable manufacturing overhead per machine-hour $ 2.00 Recently, Job L716 was completed with the following characteristics: Number of units in the job 10 Total machine-hours 20 Direct materials $ 545 Direct labor cost $ 1,090 The amount of overhead applied to Job L716 is closest to: (Round your intermediate calculations to 2 decimal places.)
Answer:
Total overhead applied = $220
Explanation:
Total variable overhead estimated = Variable manufacturing overhead per machine-hour * Total machine-hours
Total variable overhead estimated = ($2 * 32,700)
= $65,400
Total overhead estimated = Total variable overhead estimated + Total fixed overhead estimated
Total overhead estimated = $65,400 + $294,300
Total overhead estimated = $359,700
Predetermined overhead rate = Total overhead estimated / Total machine hours
= $359,700 / 32,700
=$ 11 per machine hour
Hence, the total overhead applied = Predetermined overhead rate * Total machine hours L716
Total overhead applied = ($11 * 20)
Total overhead applied = $220
On May 1, Foxtrot Co. agreed to sell the assets of its Footwear Division to Albanese Inc. for $80 million. The sale was completed on December 31, 2021. The following additional facts pertain to the transaction:
The Footwear Division qualifies as a component of the entity according to GAAP regarding discontinued operations.
The book value of Footwear's assets totaled $48 million on the date of the sale.
Footwear's operating income was a pre-tax loss of $10 million in 2021.
Foxtrot's income tax rate is 25%.
In the income statement for the year ended December 31, 2021, Foxtrot Co. would report:______.
A. Income taxes separated for continuing and discontinued operations.
B. Income taxes reported for income and gains only.
C. All income taxes combined into one line item.
D. None of these answer choices are correct.
Answer: Income taxes separated for continuing and discontinued operations
Explanation:
the income statement for the year ended December 31, 2021, Foxtrot Co. would report income taxes separated for continuing and discontinued operations.
Discontinued operations are a segment of the core business of a company which has been shut down or in certain situations divested and are separately reported on the income statement of the company from the continuing operations.
The reason why discontinued operations have to be listed separately is to enable investors to differentiate between profits from continuing operations and the activities that aren't functioning anymore.
Which of the following are characteristics of a perpetuity? A. A perpetuity is a stream of regularly timed, equal cash flows that continues forever.B. A perpetuity is a stream of unequal cash flows.C. The value of a perpetuity cannot be determined.D. The current value of a perpetuity is based more on the discounted value of its nearer (in time) cash flows and less by the discounted value of its more distance (in the future) cash flows.
Answer:
A. A perpetuity is a stream of regularly timed, equal cash flows that continue forever
D. The current value of a perpetuity is based more on the discounted value of its nearer (in time) cash flows and less by the discounted value of its more distance (in the future) cash flows.
Explanation:
First, we need to note that perpetuity is a term used in finance to refer to any continuous periodic payments of equal face value. In other words, the payments last forever.
Part of the characteristics of perpetuity is that the payments are of equal cash value and the current value of a perpetuity is based more on the discounted value of its nearer (in time) cash flows rather than by the discounted value of its more distance (in the future) cash flow.
A(n) _____ is any activity that provides goods or services to consumers for the purpose of making a profit.
Answer:
Trade
Explanation:
Answer:
A Business
Explanation:
This is exactly what businesses do they provide goods and/or services in hopes of making money!
GRECO RESORT
TRIAL BALANCE
AUGUST 31, 2017
Debit Credit
Cash $19,600
Prepaid Insurance 4,500
Supplies 2,600
Land 20,000
Buildings 120,000
Equipment 16,000
Accounts Payable $4,500
Unearned Rent Revenue 4,600
Mortgage Payable 60,000
Common Stock 91,000
Retained Earnings 9,000
Dividends 5,000
Rent Revenue 76,200
Salaries and Wages Expense
44,800
Utilities Expenses 9,200
Maintenance and Repairs Expense
3,600
$ 245,300 $245,300
1. The balance in prepaid insurance is a one-year premium paid on June 1, 2017.
2. An inventory count on August 31 shows $450 of supplies on hand.
3. Annual depreciation rates are buildings (4%) and equipment (10%). Salvage value is estimated to be 10% of cost.
4. Unearned Rent Revenue of $3,800 was earned prior to August 31.
5. Salaries of $375 were unpaid at August 31.
6. Rentals of $800 were due from tenants at August 31.
7. The mortgage interest rate is 8% per year.
Instructions:
(a) Journalize the adjusting entries on August 31 for the 3-month period June 1 - August 31 (omit explanations.)
(b) Prepare an adjusted trial balance on August 31.
Answer:
GRECO RESORT
a) Journal Entries on August 31:
1. Debit Insurance Expense $1,125
Credit Prepaid Insurance $1,125
2. Debit Supplies Expense $2,150
Credit Supplies $2,150
3. Debit Depreciation Expense-Buildings $4,800
Credit Accumulated Depreciation - Buildings $4,800
Debit Depreciation Expense- Equipment $1,440
Credit Accumulated Depreciation- Equipment $1,440
4. Debit Unearned Rent Revenue $3,800
Credit Rent Revenue $3,800
5. Debit Salaries Expense $375
Credit Salaries Expense Payable $375
6. Debit Accounts Receivable $800
Credit Rent Revenue $800
7. Debit Mortgage Interest Expense $1,200
Credit Mortgage Interest Payable $1,200
b. GRECO RESORT
Adjusted TRIAL BALANCE
AUGUST 31, 2017
Debit Credit
Cash $19,600
Accounts Receivable 800
Prepaid Insurance 3,375
Supplies 450
Land 20,000
Buildings 120,000
Equipment 16,000
Accounts Payable $4,500
Mortgage Interest Payable 1,200
Unearned Rent Revenue 800
Mortgage Payable 60,000
Common Stock 91,000
Retained Earnings 9,000
Accumulated Depreciation-Buildings 4,800
Accumulated Depreciation-Equipment 1,440
Dividends 5,000
Rent Revenue 80,800
Salaries & Wages Expense Payable 375
Salaries and Wages Expense 45,175
Utilities Expenses 9,200
Maintenance & Repairs Expense 3,600
Insurance Expense 1,125
Supplies Expense 2,150
Depreciation Expense- Buildings 4,800
Depreciation Expense- Equipment 1,440
Mortgage Interest Expense 1,200
Total $ 253,915 $253,915
Explanation:
a) Data and Calculations:
GRECO RESORT
TRIAL BALANCE
AUGUST 31, 2017
Debit Credit
Cash $19,600
Prepaid Insurance 4,500
Supplies 2,600
Land 20,000
Buildings 120,000
Equipment 16,000
Accounts Payable $4,500
Unearned Rent Revenue 4,600
Mortgage Payable 60,000
Common Stock 91,000
Retained Earnings 9,000
Dividends 5,000
Rent Revenue 76,200
Salaries and Wages Expense 44,800
Utilities Expenses 9,200
Maintenance & Repairs Expense 3,600
Total $ 245,300 $245,300
b) Mortgage Interest Expense = $60,000 * 8% * 3/12 = $1,200
1. What recommendations would you make to Jim to help him improve the financial
performance of Wave Riders in the future? Prepare a memo to Jim outlining your
recommendations, making certain to include your reasons for the recommendation
(i.e. ratio analysis and/or comparisons to industry ratios
Answer:
Hello your question is incomplete below is the complete question
Jim Connor is the owner of Wave Riders, a surf shop located in West Palm Beach, Florida. Jim has just received his end of the year financial statements from his accountant. When he sees his gross and net income he is dismayed. With almost $250,000 in gross profit he just doesn’t understand why he is always short on cash to pay his employees and suppliers. One of his largest suppliers of surf boards notified him just last month that they would no longer extend him credit and he would have to pre-pay all of his orders. He puts a call into his accountant to set up a meeting with her to discuss the financial health of his business
Average inventory turnover ratio : Wave riders = 2.5 , Industry = 6.85 ( as calculated )
answer: The recommendations that should be made to Jim to help him improve the company's financial performance is, Jim should work on selling off his old inventories before ordering more
Explanation:
The recommendations that should be made to Jim to help him improve the company's financial performance is, Jim should work on selling off his old inventories before ordering more, this is because The Average inventory turnover ratio for Waveriders is lower than the Industry's Average inventory turnover ratio. and this is caused by inadequate inventory management ( overstocking or low sales ) and this is affecting The financials of Waveriders
As per the recommendations that are made to Jim inorder to improve his performance he should work on selling his old inventories.
What are inventories?Inventories are the stocks that refer to goods and materials that businesses hold for the ultimate goals of resales, production, and utilization.
The recommendations that need to be made to Jim are that he should first sell the old inventories before taking the new ones.
Per average inventory turnover the ratio for the Waveriders is lower than the Industry's Average inventory turnover ratio.
Find out more information about the financial performance.
brainly.com/question/1279044
The L.L. Bean men’s cotton chambray shirt comes in the following colors: blue, stone, rust, green, red, orange, plum, and indigo. In addition, shirt sizes are small (S), medium (M), large (L), extra large (XL), and extra extra large (XXL), and the shirt comes with either short sleeves, medium sleeves, or long sleeves. As the inventory manager for L.L. Bean’s eastern U.S. operations, you are concerned about physical, basically shelf, space, as well as inventory system space, basically computer memory. For example, products with many varieties, or styles, require more physical (shelf) space, as well as more inventory system space. How many types of the cotton chambray shirt can be produced?
Answer:
120 different types can be produced
Explanation:
there are 5 sizes:
small (S)medium (M)large (L)extra large (XL)extra extra large (XXL)there are 8 possible colors:
bluestonerustgreenredorangeplumindigothere are 3 different models (sizes of sleeves):
short sleevesmedium sleeves long sleevesthe total possible combinations = 5 (size options) x 8 (color options) x 3 (sleeves options) = 120 different types can be produced
e.g. a short sleeve can be blue and small, but it can also be large, medium, and so on. Each short sleeve shirt can be produced in 40 different ways and this also applies to medium sleeves and long sleeves shirts.
The controller for Tulsa Medical Supply Company has established the following activity cost pools and cost drivers.
Activity Cost Pool Budgeted Overhead Cost Cost Driver Budgeted Level for Cost Driver Pool Rate
Machine setups $ 250,000 Number of setups 125 $ 2,000 per setup
Material handling 75,000 Weight of raw material 37,500 lb. $2 per pound
Hazardous waste control 25,000 Weight of hazardous chemicals used 5,000 lb. $ 5 per pound
Quality control 75,000 Number of inspections 1,000 $ 75 per inspection
Other overhead costs 200,000 Machine hours 20,000 $ 10 per machine hour
Total $ 625,000
Required:
1. Calculate the unit cost of a production order for 100 specially coated plates used in cancer testing. In addition to direct material costing $120 per plate and direct labor costing $40 per plate, the order requires the following: (Round intermediate calculations and final answer to 2 decimal places.)
Machine setups 3
Raw material 900 pounds
Hazardous materials 300 pounds
Inspections 3
Machine hours 50
Answer:
Tulsa Medical Supply Company
1. Calculation of the unit cost of a production order for 100 specially coated plates used in cancer testing:
Direct materials $120 * 100 plates = $12,000
Direct labor 40 * 100 plates = 4,000
Overhead:
Machine setups $2,000 * 3 setups $6,000
Material handling $2 * 900 pounds 1,800
Hazardous control $5 * 300 pounds 1,500
Quality control $75 * 3 inspections 225
Other overheads $10 * 50 machine hours 500
Total overheads applied $10,025
Total manufacturing cost for 100 plates $26,025
Unit cost = $26,025/100 = $260.25 per plate
Explanation:
a) Data and Calculations:
Activity Cost Pool Budgeted Cost Driver Budgeted Level for
Overhead Cost Cost Driver Pool Rate
Machine setups $ 250,000 Number of setups 125 $ 2,000 per setup
Material handling 75,000 Weight of raw material 37,500 lb. $2 per pound
Hazardous waste control 25,000 Weight of hazardous chemicals used 5,000 lb. $ 5 per pound
Quality control 75,000 Number of inspections 1,000 $ 75 per inspection
Other overhead costs 200,000 Machine hours 20,000 $ 10 per machine hour
Total $ 625,000
Greet the customer and thank them for contacting our company
2. Let the customer know their order has been delayed, as caused by a severe blizzard on the East coast.
3. Express sympathy for the inconvenience caused.
4. Let them know that they can call customer support 8a - 8p EST, Mon - Fri: 555-555-5555
5. Sign off
Answer:
ok
Explanation:
Purple Company has $200,000 in net income for 2018 before deducting any compensation or other payment to its sole owner, Kirsten. Kirsten is single and she claims the $12,000 standard deduction for 2018. Purple Company is Kirsten's only source of income.Ignoring any employment tax considerations, compute Kirsten's after-tax income for each of the following situations.Click here to access the 2018 individual tax rate schedule to use for this problem. Assume the corporate tax rate is 21%.When required, carryout intermediate tax computations to the nearest cent and then round your final tax liability to the nearest dollar.a. If Purple Company is a proprietorship and Kirsten withdraws $50,000 from the business during the year; Kirsten claims a $40,000 deduction for qualified business income ($200,000 × 20%).Kirsten's taxable income is $148,000 and her after-tax income is _____b. Purple Company is a C corporation and the corporation pays out all of its after-tax income as a dividend to Kirsten.Note: Individual taxpayers received preferential treatment regarding the taxation of qualified dividends (0%,15%,20%). For single taxpayers, the 0 percent rate applies to the first $38,600 of taxable income.Purple Corporation's after-tax income is $158,000 and Kristen's after tax income is _____c. Purple Company is a C corporation and the corporation pays Kirsten a salary of $158,000.Kirsten's after-tax income is _____
Answer:
a. Kristen's taxable income = $148,000
her tax liability:
($38,700 - $9,525) x 12% = $3,501
($82,500 - $38,701) x 22% = $9,635.78
($148,000 - $82,501) x 24% = $15,719.76
total = $28,856.54
Kristen's after tax income = $200,000 - $28,856.54 = $171,143.46
b. Purple's corporate tax liability = $200,000 x 21% = $42,000
Purple's after tax income = ($200,000 - $42,000) = $158,000
Kristen's taxable income is $146,000 (qualified dividends are included in AGI but taxed at different rate), her tax rate will be 15%. Kristen's after tax income = $158,000 - ($146,000 x 15%) = $136,100
c. Kristen's tax liability on ordinary income ($158,000) = $28,376.54
Kristen's tax liability on qualified dividends = ($42,000 x 0.79) x 15% = $4,977
total tax liability = $33,353.54
Kristen's after tax income = $158,000 + $33,180 - $33,353.54 = $157,826.46
In a competitive bid, Multiple Choice the terms of sale are offered by the supplier in response to the purchase specifications posted by a buyer. long-term suppliers of a firm compete to do business with the firm to increase flexibility and spur innovation. if different suppliers’ quality, dependability, and delivery schedules all meet the buyer’s specifications, the buyer will select the high-price bid. the terms of sale are offered by a buyer after product specifications are posted by the seller. as the number of suppliers competing for the business increases, the ability to drive down prices or provide beneficial terms of sale is lost.
Answer:
the terms of sale are offered by the supplier in response to the purchase specifications posted by a buyer.
Explanation:
Competitive bid is when an entity that wants to buy a product or service requests for proposals from suppliers stating how well they meet the requirements of the buyer.
Suppliers also state the price at which the product or service can be delivered.
Buyers review the bids and choose the one that is best for at the lowest price.
A competitive bid is a transparent process where all the most qualified suppliers are chosen to execute a project.
The performance history of suppliers may also be used when buyer is deciding on the best fit.
In content marketing, organizations develop media content to attract audiences and interact with publics. The goal is to make it interesting and engaging enough that people will seek it, consume it, and share it for its own information or entertainment value rather than see it as an interruption to some other media experience. Which is the best example of this kind of media content? Group of answer choices
Answer:
The correct answer will be "EARNED ".
Explanation:
Earned media is where certain content or information is presented by consumers, the viewing public as well as press, chat by recommendations from friends regarding your business, and sometimes even highlight your business. In several other cases, the references are "earned," implying that people gladly give themselves.On January 1, 2021, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a four-year period ending December 31, 2024, at which time possession of the leased asset will revert back to Aqua. The equipment cost Aqua $412,184 and has an expected economic life of five years. Aqua expects the residual value at December 31, 2024, to be $50,000. Negotiations led to Maywood guaranteeing a $70,000 residual value. Equal payments under the lease are $100,000 and are due on December 31 of each year with the first payment being made on December 31, 2021. Maywood is aware that Aqua used a 5% interest rate when calculating lease payments. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. & 2. Prepare the appropriate entries for Maywood on January 1, 2021 and December 31, 2021, related to the lease. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar.)
Answer and Explanation:
The Journal entries are shown below:-
1. Right of use assets Dr, $371,049
To Lease payable $371,049
(Being lease is recorded)
Working note:-
Present value of periodic lease payment $354,595
($100,000 × (present value of ordinary annuity of $1, n = 4, i = 5%)
($100,000 × 3.54595)
Present value of an estimated cash payment under a residual value
$16,454 (Present value $1, n = 4, i = 5%)
Lease payment = $354,595 + $16,454
= $371,049
2. Amortization expense Dr, ($371,049 ÷ 4 years) $97,262
To Right of use assets $97,262
(Being related to the lease is recorded)
3. Interest expense Dr, (5% × $371,049) $18,552
Lease payable Dr, $81,448
To annual payment of cash $100,000
(Being annual payment of lease is recorded)
PayPal is an example of which of the following?
regionally based currency
traditional currency
cryptocurrency
mobile commerce
Answer:
mobile commerce is the answer
The correct option is D. PyPal is an example of mobile commerce.
A mobile eCommerce platform offers specific mobile features including loyalty cards, money transfers, deliveries, and banking in addition to mobile ticketing and coupons.
Why do we need mobile commerce?A customer can obtain a wide range of things delivered to their door by using M-commerce. They even receive several offers and discounts. Additionally, a variety of payment options like UPI, debit and credit cards, and cash on delivery make it simpler and more practical for users.
A safe and secure way to send and receive money online is through the use of PyPal. You can use PyPal to make online purchases from participating stores when you link your bank account, credit card, or debit card to your PyPal account.
Thus, D is the right answer. Mobile commerce is exemplified by PyPal.
Learn more about Mobile commerce here:
https://brainly.com/question/8985865
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Temporary Housing Services Incorporated (THSI) is considering a project that involves setting up a temporary housing facility in an area recently damaged by a hurricane. THSI will lease space in this facility to various agencies and groups providing relief services to the area. THSI estimates that this project will initially cost $5 million to setup and will generate $20 million in revenues during its first and only year in operation (paid in one year). Operating expenses are expected to total $12 million during this year and depreciation expense will be another $3 million. THSI will require no working capital for this investment. THSI's marginal tax rate is 35%. Ignoring the original investment of $5 million, what is THSI's free cash flow for the first and only year of operation
Answer:
$6.25 million
Explanation:
Calculation for free cash flow
Using this formula
Free Cash Flow = (Revenues - Expenses-Depreciation) × (1–Tax rate) + Depreciation
Let plug in the formula
Free Cash Flow= ($20 million - $12 million - $3 million ) × (1–0.35) + $3 million
Free Cash Flow=($5 million*0.65)+$3 million
Free Cash Flow=$3.25million+$3 million
Free Cash Flow=$6.25 million
Therefore free cash flow for the first and only year of operation wiill be $6.25 million
Garret Company has provided the following selected information for the year ended December 31, 2016: Cash collected from customers was $790,000. Cash received from stockholders in exchange for common stock totaled $90,000. Cash paid to suppliers was $380,000. Cash paid to employees was $220,000. Cash to stockholders for dividends was $54,000. Cash received from sale of a building was $300,000. Cash paid for store rent was $40,000. Cash received for interest and dividends was $6,000. Cash paid for income taxes was $45,000. Based on the selected information provided, how much was Garret's cash flow from operating activities
Answer: $111,000
Explanation:
Based on the selected information provided, Garret's cash flow from operating activities will be:
Cash collected from customers = $790,000
Less: Cash paid to suppliers = $380,000.
Less: Cash paid to employees = $220,000.
Less: Cash paid for store rent = $40,000.
Add: Cash received for interest and dividends = $6,000.
Less: Cash paid for income taxes = $45,000.
Total = $111000
Garret's cash flow from operating activities will be $111000
Intask Corporation uses the FIFO method in its process costing system. Beginning inventory in the mixing department consisted of 6,000 units that were 75% complete with respect to conversion costs. Ending work in process inventory consisted of 5,000 units that were 60% complete with respect to conversion costs. If 12,000 units were transferred to the next processing department during the period, the equivalent units of production for conversion cost would be:
Answer:
$10,500 units
Explanation:
Calculation of equivalent units of production for conversion cost
First step is to find the Units started and completed during the period using this formula
Units started and completed during the period = Units transferred to the next processing department- Beginning inventory in the mixing department units
Let plug in the formula
Units started and completed during the period = = 12,000 - 6,000
Units started and completed during the period = = 6,000
Second step is to find the Equivalent units of production
Equivalent units of production=6,000 * 25% + 6,000*100% + 5,000*60%
Equivalent units of production=1,500+6,000+3,000
Equivalent units of production=10,500 units
Therefore the equivalent units of production for conversion cost will be $10,500 units
Crystal Company produces a single product. The company's variable costing income statement for the month of May appears below:
Sales ($10 per unit) $900,000
Variable Expenses:
Variable Cost of Goods Sold 450,000
Variable Selling Expenses 90,000
Total Variable Expenses 540,000
Contribution Margin 360,000
Fixed Expenses:
Fixed Manufacturing Overhead 240,000
Fixed Selling & Administrative 90,000
Total Fixed Expenses 330,000
Net Operating Income $30,000
The company produced 80,000 units in May and the beginning inventory consisted of 25,000 units. Variable production costs per unit and total fixed costs have remained constant over the past several months.
Under absorption costing, for the month ended May 31, the company would report a:_______.
Answer:
10
Explanation:
Neighborhood Realty, Incorporated, has been operating for three years and is owned by three investors. S. Bhojraj owns 60 percent of the total outstanding stock of 9,000 shares and is the managing executive in charge. On December 31, current year, the following financial items for the entire year were determined: commissions earned and collected in cash, $150,900, plus $16,800 uncollected; rental service fees earned and collected, $20,000; salaries expense paid, $62,740; commissions expense paid, $35,330; payroll taxes paid, $2,500; rent paid, $2,475 (not including December rent yet to be paid); utilities expense paid, $1,600; promotion and advertising paid, $7,750; income taxes paid, $24,400; and miscellaneous expenses paid, $500. There were no other unpaid expenses at December 31. Also during the year, the company paid the owners "out-of-profit" cash dividends amounting to $12,000.
Complete the following income statement:Income Statement
Revenues:Commissions earned$Rental service fees$Total revenues$Expenses:Salaries expenseCommission expensePayroll tax expenseRent expenseUtilities expensePromotion and advertising expenseMiscellaneous expensesTotal expenses (excluding income taxes)Pretax incomeIncome tax expenseNet income$
Answer:
$50,180
Explanation:
Preparation of Income Statement
NEIGHBORHOOD REALTY, Incorporated Income Statement For the Year Ended December 31,
REVENUE :
Commissions earned$167,700
($150,900+ $16,800)
Rental service fees 20,000
Total revenues $187,700
EXPENSES :
Salaries expense $62,740
Commissions expense $35,330
Payroll taxes $2,500
Rent Expenses $2,700
($2,475/11 month=225)
($2,475+225=$2,700)
Utilities expense $1,600
Promotion and advertising $7,750
Miscellaneous expenses $500
Total expenses (excluding income taxes) $113,120
Pretax income $74,580
($187,700-$113,120)
Income tax expense 24,400
Net income $50,180
($74,580-24,400)
Therefore NEIGHBORHOOD REALTY, Incorporated Income Statement For the Year Ended December 31, NET INCOME will be $50,180
Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business—September, October, and November—are $260,000, $375,000, and $400,000, respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale. The cash collections expected in October from accounts receivable are estimated to be Group of answer choices
Answer:
Total cash collection= $246,400
Explanation:
Giving the following information:
Sales:
September= $260,000
October= $375,000
The company expects to sell 30% of its merchandise for cash.
Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale.
Cash collection October:
Sales on account October= (375,000*0.7)*0.8= 210,000
Sales on account Septembre= (260,000*0.7)*0.2= 36,400
Total cash collection= $246,400
