Answer:
Book Value at end of year 6 = $100,000
Explanation:
An Asset is depreciated to salvage value therefore when depreciation is complete the book value equals salvage value or zero.
Salvage value is an estimated value of what the company expects to earn after using the asset maybe when selling off the asset.
Answer:
Check the explanation
Explanation:
Year Depreciation Rate Depreciation=400000*rate Book value
1 20 80000 320000
2 32 128000 192000
3 19.2 76800 115200
4 11.52 46080 69120
5 11.52 46080 23040
6 5.76 23040 0
Therefore, the book value at the end of year 6 = 0
A worksheet A. is an internal document that helps summarize data for the preparation of financial statements. B. is a journal used to record transactions. C. is a ledger listing the account balances and changes in those accounts.
Answer:
A. is an internal document that helps summarize data for the preparation of financial statements.
Explanation:
A worksheet is an internal document used to prepare accounting information and different reports. It used to calculate the adjusted values from unadjusted values. In include unadjusted trial balance, adjusting journal entries, adjusted trial balance, equity section, Income statement section and balance sheet section. It provide information for the preparation of financial statements.
The following information is available for Splish Brothers Inc. for three recent fiscal years. 2022 2021 2020Inventory $580,000 $590,000 $320,000Net sales 1,950,000 1,750,000 1,350,000Cost of goods sold 1,462,500 1,228,500 938,000Calculate the inventory turnover, days in inventory, and gross profit rate for 2022 and 2021. 2022 2021Inventory Turnover times timesDays in Inventory days daysGross Profit Rate % %
Answer:
In 2021:
Inventory Turnover for 2021: 2.7 times
Days in inventory: 135.19 days
Gross Profit Rate: 29.8%
In 2022:
Inventory Turnover for 2022: 2.5 times
Days in inventory: 146 days
Gross Profit Rate: 25%
Explanation:
Inventory turnover ratio is calculated by using following formula:
Inventory turnover ratio = Cost of Goods Sold/Average Inventory
Average Inventory = (Inventory beginning of year + Inventory end of year )/2
In the company:
Average Inventory for 2021 = ($590,000 + $320,000)/2 = $455,000
Average Inventory for 2022 = ($580,000 + $590,000)/2 = $585,000
In 2021:
Inventory Turnover for 2021 = $1,228,500/$455,000 = 2.7 times
Days in inventory = 365/Inventory Turnover = 365/2.7 = 135.19 days
Gross Profit Rate = Gross profit/net sales = (Net Sales - Cost of goods sold)/Net Sales = ($1,750,000 - $1,228,500)/$1,750,000 = 0.298 = 29.8%
In 2022:
Inventory Turnover for 2022 = $1,462,500/$585,000 = 2.5 times
Days in inventory = 365/Inventory Turnover = 365/2.5 = 146 days
Gross Profit Rate = Gross profit/net sales = (Net Sales - Cost of goods sold)/Net Sales = ($1,950,000 - $1,462,500)/$1,950,000 = 0.25 = 25%
The following units of an inventory item were available for sale during the year: Beginning inventory 10 units at $50 First purchase 17 units at $52 Second purchase 27 units at $53 Third purchase 19 units at $55 The firm uses the periodic inventory system. During the year, 26 units of the item were sold. The value of ending inventory rounded to the nearest dollar using average cost is (Round average cost per unit to three decimal place.) a.$1,300 b.$1,332 c.$2,485 d.$1,416
Answer:
The correct answer is C
Explanation:
The formula for computing the ending inventory through using the average cost is as:
Ending Inventory = Beginning Inventory + Purchases - COGS (Cost of goods sold)
where
Beginning inventory = Units × Price
= 10 × $50
= $500
Purchases = First Purchase + Second Purchase + Third Purchases
Purchases = Units × Price + Units × Price + Units × Price
Purchases = 17 × $52 + 27 × $53 + 19 × $55
Purchases = $884 + $1,431 + $1,045
Purchases = $3,360
COGS = Units × Price
COGS = 26 × Price
COGS = 26 × $53
COGS = $1,378
Price is computed as:
Price = $50 + $52 + $53 + $55 / 4
Price = $52.5
Putting the values above:
Ending Inventory = $500 + $3,360 - $1,378
Ending Inventory = $2,485
Suppose that a mechanic owns a building and is renting part of the building's space to a spa. Further suppose that because the mechanic is the owner, he has the right to make noise during the day while he fixes cars. While the spa cannot insist on a quiet environment, it could move to a quieter building. However, rent in the next best building is $350/month more than rent in the noisy building. The mechanic can adopt a new technology that eliminates the noise for $275/month. Given this situation, can the spa find a private solution with the mechanic that will make both better off
Answer:
The correct answer is letter "B": Yes, but there is only a range of payments that the spa will pay the mechanic to make them both better off.
Explanation:
The spa must analyze the benefit-cost of the possible solution for the noise problem. A spa itself cannot provide a noisy atmosphere to its clients. Moving the spa to the next best building implies spending $350 monthly more for rent. However, the mechanic can eliminate the noise with a device that costs $275 per month. Thus, the spa should share the expenses with the mechanic for the noise-elimination device to reduce the costs of having a noise-free environment obtaining the benefit desired.
(Related to Checkpoint 18.3) (Evaluating trade credit discounts) Determine the annualized cost of forgoing the trade credit discount on the terms of 3/15, net 60 (assume a 360-day year).
Answer: Annualized cost of forgoing Discount = 24.74%
Explanation:
D=discount rate = 3%
N1=umber of days to claim discount = 15
N= Normal days = 60
Annualized cost of forgoing Discount = (D÷(100 -D)) x (360÷(N - N1))
Annualized cost of forgoing Discount = (3%÷(100% - 3%)) x (360÷(60-15)
Annualized cost of forgoing Discount = (3%÷97%) x (360÷45)=0.247422680
Annualized cost of forgoing Discount = 24.74%
On August 1, 2018, Towson Corp., declared a 10% stock dividend on its common stock when the market value of the common stock was $17 per share. The balance in the common stock account, before the stock dividend was declared, was $800,000. The par value of all common stock is $10. What is the total dollar amount credited to additional paid in capital - common stock on August 1, 2018?
The dollar amount credited to common stock is $40,000
The dollar amount credited to additional paid in capital - common stock is $36,000
Solution:
Before stock dividend is declared, there is 80,000 stocks outstanding ( that is, Common stock account balance/par value per stock = 800,000/10)
=> Stock to be distributed as dividend = 80,000 * 5% = 4,000 stocks
As the stock dividend is 5%, this is a small stock dividend => stock dividend is to be recorded at market value.
We have the entries:
Dr Retained Earnings 76,000
Cr Common stock dividend distributed 40,000
Cr Additional paid-in capital - common stock 36,000
The dollar amount credited to common stock is $40,000
The dollar amount credited to additional paid in capital - common stock is $36,000
Complements stimulate the incentive to buy the original product because customers then will have a limited, exclusive supply to use in conjunction with the main product. b. Complements stimulate the incentive to buy the original product because customers will then have a large supply of complements to use in conjunction with the main product. c. Complements tend to be of more importance than the product itself. d. Complements are not as important as the original product.
Answer:
Complements stimulate the incentive to buy the original product because customers then will have a limited, exclusive supply to use in conjunction with the main product.
Explanation:
Complementary goods are goods that are consumed together, so increase in demand for one results in increase in sand for the other. For example sugar and tea are complimentary goods.
It is found that compliments stimulate increased demand of the original product. Let's say we have a lot of sugar we can use with tea and tea level is low at home. The fact that I have a lot of sugar I can use with tea will motivate me to buy more tea, since I already have sugar I can use with it.
A company's interest expense is $9,000. Its income before interest expense and income taxes is $38,250. Its net income is $11,850. The company's times interest earned ratio equals:
(A) 0.235.
(B) 0.76.
(C) 3.23.
(D) 4.25.
(E) 0.31.
Answer:
(D) 4.25.
Explanation:
The company's times interest earned ratio is a financial measure given as the earnings before interest and taxes (EBIT) divided by the total interest payable on debts.
Times interest earned = net income before interest and tax/ Interest payable
= $38,250/$9,000
= 4.25
This means that the company's earnings before interest and taxes can settle its interest 4.25 times.
By the start of ____, global growth slipped. The post-World War II boom in advanced industrial nations lost momentum. The need existed for a new set of advanced technologies. Select one: a. 1970 b. 1980 c. 1960 d. 1990
By the start of 1970, global growth slipped. The post-World War II boom in advanced industrial nations lost momentum. The need existed for a new set of advanced technologies.
Explanation:
By the start of 1970, global growth slipped. The post-World War II boom in advanced industrial nations lost momentum. The need existed for a new set of advanced technologies. Technological changes, are like a series of explosions with innovations uplifting in specific sectors, or the leading industries that provide the momentum for future prosperity.the process of technological transformation should be called “creative destruction", as it becomes dominant at expenses.A work-at-home opportunity is available in which you will receive 2 percent of the sales for customers you refer to the company. The cost of your ""franchise fee"" is $750. How much would your customers have to buy to cover the cost of this fee
Answer:
$37,500
Explanation:
You receive 2% of the sales.
You have to earn $750 to break even, or cover the franchise cost.
So, if we let Sales be "x", we can say:
2% of x would be 750
What is 2% in decimal?? We divide by 100, so we have:
2% = 2/100 = 0.02
Now, we convert the word equation above to mathematical equation:
0.02 * x = 750
Now, we solve for x, the amount customers have to buy (or sales):
[tex]0.02*x=750\\x=\frac{750}{0.02}\\x=37,500[/tex]
Hence,
Customers would have to buy $37,500 to cover the cost of this fee.
Final answer:
To cover a $750 franchise fee with a 2% commission rate, customers referred by the franchisee would need to make a total of $37,500 in purchases.
Explanation:
How to Calculate the Sales Needed to Cover a Franchise Fee
The question involves finding out how much in sales is needed to cover a franchise fee when earning a commission of 2 percent on the sales from customers you refer. To determine this, you can use the formula: Sales Needed = Franchise Fee / Commission Rate.
Here, the franchise fee is $750 and the commission rate is 2%, or 0.02 when expressed as a decimal. The calculation would then be:
Sales Needed = $750 / 0.02 = $37,500
Therefore, to cover the cost of a $750 franchise fee with a 2% commission rate, your customers would need to make a total of $37,500 in purchases.
"Makers Corp. had additions to retained earnings for the year just ended of $213,000. The firm paid out $183,000 in cash dividends, and it has ending total equity of $4.88 million. The company currently has 110,000 shares of common stock outstanding."What are earnings per share?What are dividends per share?What is the book value per share?If the stock currently sells for $63 per share, what is the market-to-book ratio?What is the price-earnings ratio?If the company had sales of $3.52 million, what is the price-sales ratio?
Answer:
Dividends per share is $1.66
Book value per share is $44.36
Market-to-book ratio is 1.42
Price-earnings ratio is 32.54
Price-sales ratio is 1.97
Explanation:
1 ) What are dividends per share?
Dividends per share = cash dividends/ number of shares = $183,000/ 110,000 = $1.66
2) What is the book value per share?
Book value per share = total equity/ number of shares = $4,880,000 / 110,000 = $44.36
3) If the stock currently sells for $63 per share, what is the market-to-book ratio?
Market-to-book ratio = $63/ $44.36 = 1.42
4) What is the price-earnings ratio?
The price of Makers Corp. = market price * number of shares = $63* 110,000 = $6,930,000
Price-earnings ratio = $693,000/ $213,000 = 32.54
5) If the company had sales of $3.52 million, what is the price-sales ratio?
Price-sales ratio = market price/ sales = $6,930,000/ $3,520,000 = 1.97
One important aspect of the new social contract is:A. Fixed pension benefits have increased significantly.B. Fixed pension benefits have remained a solid incentive for workers.C. Fixed pension benefits have been eliminated in the U.S. by around 90 percent.D. Defined contribution plans provide more returns and less risk.
Answer:C. Fixed pension benefits have been eliminated in the U.S. by around 90 percent.
Explanation: Social contract is a term used in sociology to describe the contractual obligations between different facets or categories of persons in a social setting which enables them to effectively establish a moral,political and economical etc ways of executing or doing things.
When people are in a Social contract with their Government,it means both the Government and the people have certain rights and responsibilities which they have to perform to sustain their relationships.
Suppose that consumers' preferences are well behaved in that properties 4-1 to 4-4 are satisfied. Furthermore, assume goods X and Y are normal goods and the price of good X decreases. Then the substitution effect will lead consumer to consume:
a. More of good X and more of good Y
b. Less of good X and more of good Y
c. Less of good X and less of good Y
d. More of good X and less of good Y
Answer:
d. More of good X and less of good Y
Explanation:
Normal goods are goods whose demands vary directly with income. If income rises, demand increases and if income falls, demand falls.
When the price of good X reduces, good X becomes cheaper and rational consumers would demand more of good X because it is cheaper and less of good Y which is now more expensive. This is known as the substitution effect.
I hope my answer helps you
Final answer:
The substitution effect will cause a consumer to consume more of good X and less of good Y when the price of good X decreases and both goods are normal goods.
Explanation:
When the price of good X decreases and assuming goods X and Y are normal goods, the substitution effect will lead a consumer to consume more of good X and less of good Y. The substitution effect, based on consumer's behavior with well-behaved preferences, dictates that as the price of a product decreases, consumers will substitute more of this now-cheaper good in place of others. Therefore, the consumer will buy more of good X because it has become relatively cheaper compared to good Y. However, since both X and Y are normal goods, we are not discussing the income effect here, which could potentially increase the consumption of both goods due to the extra purchasing power from the price decrease of good X.
Considering the options provided:
a. More of good X and more of good Y – Incorrect, substitution effect considers only one good becoming relatively cheaper.b. Less of good X and more of good Y – Incorrect, substitution effect dictates more of the cheaper good, not less.c. Less of good X and less of good Y – Incorrect, the price decrease leads to more consumption of the cheaper good due to the substitution effect.d. More of good X and less of good Y – Correct, as the substitution effect will generally cause consumers to purchase more of the relatively cheaper good and less of the relatively more expensive good.Gates Corp. has net income of $172,000, sales of $ 1,453,909, and an accounts receivable balance of $127,100. Assume that 100% percent of sales are on credit. What is the days' sales in receivables?
Answer:
Days' sales in receivables= 31.91 days
Explanation:
The day's sales in account receivable ratio is also called average collection period. It states the number of days on the average to collect a business's account receivable.
Days sales turnover is calculated by dividing total number of days in a year by the account recievables turnover ratio.
The formula for accounts receivable turnover ratio= Current credit sales received/ Accounts receivable balance
Accounts receivable turnover= 1,453,909/127,100
Accounts receivable turnover= 11.439
Assume a 365 day year
Days' sales in receivables= 365/Account receivable turnover
Days' sales in receivables= 365/11.439
Days' sales in receivables= 31.908~ 31.91 days
Other things equal, demand tends to be more __________ the more substitutes there are available, and more _________ when the higher the proportion of the consumer’s income spent on the good.
Answer:
Elastic/ Inelastic
Explanation:
Price elasticity of demand is a tool use to measure in economics to show the elasticity, or responsiveness, of the demanded quantity of goods or services to increase in its price. When the price of a good or service changes, inelastic demand is when the buyer's demand does not change when the price of the good or service changes.
Answer:
Elastic, inelastic
Explanation:
Other things equal, demand tends to be more elastic the more substitutes there are available, and more inelastic when the higher the proportion of the consumer’s income spent on the good
One of the factors determining the price elasticity of demand for the good is the number of substitutes. More substitutes equal to more elastic demand.
general, the more good substitutes there are, the more elastic the demand will be. For example, if the price of lux soap went up by $0.25, consumers might replace their soap with a cheaper brand. This means that lux soap is an elastic good because a small increase in price will cause a large decrease in demand as consumers start buying other brands instead of lux soap.
When demand for a good or service is static when its price or other factor changes, it is said to be inelastic. So when the price goes up, consumers will not change their buying habits. The same applies when the price goes down.
Terri, age 16, is a dependent of her parents. During 2018, Terri earned $5,000 in interest income and $3,000 from part-time jobs. Click here to access the 2018 tax rate schedule and 2018 Estate and Trust Tax Rate Schedule. a. What is Terri's taxable income
Terri's taxable income is the part of her interest income that exceeds the tax-free limit of $1,050. So, her taxable income would be $3,950.
Explanation:Terri's taxable income is calculated based on her interest income and the income from her part-time jobs. Since she is a dependent, she can earn a certain amount of income without having to pay taxes. In 2018, a dependent could earn up to $1,050 in unearned income, like interest, before taxes. Interest income beyond $1,050 is taxable. Therefore, out of $5,000 interest income, $3,950 ($5,000 - $1,050) is taxable.
For earned income, like wages from part-time jobs, the amount a dependent can earn without owing taxes is higher. In 2018, this amount was $12,000. Since Terri earned only $3,000 from her jobs, none of this income is taxable.
In summary, Terri's taxable income for the year 2018 would be the taxable portion of her interest income, which is $3,950.
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The Best Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 40 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project.
Year 0 Year 1 Year 2 Year 3 Year 4
Investment $ 43,000
Sales revenue $ 22,000 $ 22,500 $ 23,000 $ 20,000
Operating costs 4,600 4,700 4,800 4,000
Depreciation 10,750 10,750 10,750 10,750
Net working capital spending 490 540 590 490 ?
Compute the incremental net income of the investment for each year. (Do not round intermediate calculations.)
Year 1 Year 2 Year 3 Year 4
Net income $ $ $ $
b.
Compute the incremental cash flows of the investment for each year. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign.)
Year 0 Year 1 Year 2 Year 3 Year 4
Cash flow $ $ $ $ $
c.
Suppose the appropriate discount rate is 11 percent. What is the NPV of the project? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
NPV $
Answer:
The solution is presented in the attached excel sheets.
Explanation:
Part a
For the first part the for the calculation of increment, the income is calculated as follows
The income is calculated using following
Gross Income=Sales Revenue-Operating Cost-Depreciation
Net Income is given as Gross Income-Tax Rate *Gross Income
Now the increment is given by finding the difference between two year's income.
Part b
The incremental cash flow is calculated as indicated in the attached sheet.
Part c
The present value at 11 percent is calculated as using the formula indicated in the attached sheets.
To evaluate the financial projections of the investment, we first determine the incremental net income for each year, then calculate the incremental cash flows, and lastly compute the Net Present Value (NPV) of these cash flows based on a discount rate of 11%.
Explanation:The first step is to calculate the incremental net income for each year. This is done by subtracting both the operating costs and the depreciation from the sales revenue and then deducting 40% tax. For example, in Year 1, this would look like: (22,000 - 4,600 - 10,750) * (1 - 0.4) = $4080.
Then we can calculate incremental cash flows. This means adding back the depreciation to the net income calculated in the first step, and considering changes in working capital. The calculation for Year 1 is: 4080 + 10750 - (540-490) = $14,790. Cash flow in Year 0 is -43000 because it's the investment year.
Finally, we calculate the Net Present Value (NPV). This involves the sum of present value of each year's cash flow, discounted at a rate of 11%. NPV is calculated as follows: (-43000/(1+11%)^0) + (14790/(1+11%)^1) + [similar terms for the subsequent years].
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You bought 1,000 shares of Tund Corp. stock for $60.59 per share and sold it for $82.35 per share after a few years. How will your gain or loss be treated when you file your taxes
Answer:
gain will treat as capital gain at long term tax rate
Explanation:
given data
bought shares = 1,000
stock for = $60.59 per share
sold = $82.35 per share
solution
as gain from sale of stocks is held for an investment purpose and it is treated as capital gain
when stock is here held for more than year
so gain is taxed as long term capital gain
and when gain is less than year than gain taxed short term capital gain
but here we have given stock for more than year
so here gain will treat as capital gain at long term tax rate
The profit made from selling Tund Corp. stock is a capital gain, treated as income for tax purposes. The tax rate depends on the income bracket and how long the stock was held
The gain you made from buying and selling Tund Corp. stock is referred to as a capital gain. This is the increase in the stock's value from the time you bought it ($60.59 per share) to the time you sold it ($82.35 per share). For tax purposes, the amount of this capital gain will be treated as income and, therefore, is subject to taxation. The rate of taxation depends on your overall income and how long you held the stock. If you held the stock for over a year, the capital gain is considered long-term and taxed at a generally lower rate. If held for less than a year, it is considered short-term and is taxed at your ordinary income tax rate.Learn more about Capital Gain here:
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The following information is available for Waterway Industries for the year ended December 31, 2022.
Beginning cash balance $ 51,750
Accounts payable decrease 4,255
Depreciation expense 186,300
Accounts receivable increase 9,430
Inventory increase 12,650
Net income 326,715
Cash received for sale of land at book value 40,250
Cash dividends paid 13,800
Income taxes payable increase 5,405
Cash used to purchase building 332,350
Cash used to purchase treasury stock 29,900
Cash received from issuing bonds 230,000
Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a sign e.g. - 15,000 or in parent Bonita Industries.)
Answer:
Ending cash balance $438,035
Explanation:
Waterway Industries
Statement of cash flows
For the year ended December 31, 2022
Net income $326,715
Cash flow from operating activities:
Depreciation expense 186,300
Accounts payable decrease (4,255)
Accounts receivable increase (9,430)
Inventory increase (12,650)
Income taxes payable increase 5,405
165,370
Net cash provided by operating activities = 492,085
Cash flow from investing activities :
Cash received for sale of land 40,250
Cash used to purchase building (332,350)
Net cash used by investing activities (292,100)
Cash flow from financing activities:
Cash dividends paid (13,800)
Cash used to purchase treasury stock (29,900 )
Cash received from issuing bonds 230,000
Net cash provided from financing activities 186,300
Net changes in cash 386,285
Beginning cash balance 51,750
Ending cash balance $438,035
Waterway Industries
Statement of cash flows
For the year ended December 31, 2022
Net income $326,715
Cash flow from operating activities:
Depreciation expense 186,300
Accounts payable decrease (4,255)
Accounts receivable increase (9,430)
Inventory increase (12,650)
Income taxes payable increase 5,405
Net cash provided by operating activities 492,085
Cash flow from investing activities :
Cash received for sale of land 40,250
Cash used to purchase building (332,350)
Net cash used by investing activities (292,100)
Cash flow from financing activities:
Cash dividends paid (13,800)
Cash used to purchase treasury stock (29,900 )
Cash received from issuing bonds 230,000
Net cash provided from financing activities 186,300
Net changes in cash 386,285
Add: Beginning cash balance 51,750
Ending cash balance $438,035
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Southwest Pediatrics has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $130,000; Allowance for Uncollectible Accounts = $2,100 (debit). On December 31, 2021, Southwest estimates uncollectible accounts to be 20% of accounts receivable.
Answer:
Bed debts expenses = $28,100
Explanation:
Given:
Accounts Receivable = $130,000
Allowance for Uncollected Accounts = $2,100 (debit)
Uncollected accounts = 20% of accounts receivable
Computation of Uncollected accounts :
= 20% x Accounts receivable
= 20% x $130,000
= $26,000
Total Bed debts = $26,000 + $2,100
= $28,100
Journal Entries
Date Accounts Debit Credit
Bed Debts Expenses A/c Dr $28,100
To Allowance for Uncollected Accounts $28,100
According to a book by a Harvard Business School professor, some organizational cultures simply cannot meet the challenges posed by innovation and must respond to threats from new technologies by building outside ventures. Digital Equipment is described as having one of those organizational cultures. The company squandered the opportunities presented by the PC revolution even though it was well equipped to build cheap PCs. The company did not have ____.
(A) adaptability
(B) synergy
(C) a formula for success laddering
(D) knowledge management
(E) comprehension
Answer:
A) Adaptability
Explanation:
The company could not adapt to the current trends in the market. organizational adaptability is concerned with how firms could quickly adjust their business processes to changes that enhances their growth and make give them the ability to compete with rivals.
Many advantages are embedded in adjusting to the trend in the market, one of which is:
1. They value their employees
2. They have a well defined goals
3. They become more creative
Answer:
(A) adaptability
Explanation:
Adaptability refers to the ability of changing in order to meet new challenges and opportunities. When a company is adaptable, it knows how to take advantage of the new opportunities that come its way. It also knows how to recover effectively when facing problems. It can also be understood as the ability to notice and respond to changes in an organizational environment.
Henry, a freelance driver, finds customers using various platforms such as Uber and Grubhub. He is single and has no other sources of income. In 2019, Henry's qualified business income from driving totals $61,200. Assume Henry takes the standard deduction of $12,200.Click here to access the 2019 individual tax rate schedule to use for this problem.Assume the QBI amount is net of the self-employment tax deduction.Compute Henry's QBI deduction and his Federal income tax liability.QBI deduction: $Tax liability (round to the nearest dollar): $
Answer:
Henry's QBI is $9,760
Tax liability = $4,510
Explanation:
The question is to determine Henry's QBI deductions as well as his Federal Income Tax Liability
First we determine his MTI = His net income - His standard deduction
= $61,200 - $12,200
= $49,000
QBI(Qualified Busines Income) Deduction
This will represent the lesser of the following
First = 20% of his Net Income = 0.2 x $61,200 = $12,240
Second= 20% of his MTI = 0.2 x $48,800= $9,800
Henry's QBI is $9,800
Tax Liability Computation
Based on the tax rate for individuals in 2019,
His income tax is as follows
= $970 + (12% x ($49,000-$9,800)- $9,700)
= $970 + $3,540
= $4,510
The Filzinger Corporation’s December 31, 2021 year-end trial balance contained the following income statement items:
Account Title Debits Credits Sales revenue 6,675,000
Interest revenue 69,000
Gain on sale of investments 51,000
Cost of goods sold 4,250,000
Selling expense 330,000
General and administrative expense 943,000
Interest expense 29,000
Research and development expense 580,000
Income tax expense 144,000
Required:
Calculate the company’s operating income for the year using a single-step income statement format.
Answer:
$548 000
Explanation:
Income Statement for Filzinger Corporation as at 31 December 2021
Sales 6 675 000
Cost of sales (4 250 000)
Gross Income 2 425 000
Other Income 120 000
Interest Revenue 69 000
Gain on sale of investment 51 000
Net income (2 425 000 + 120 000) 2 545 000
Expenses (330 000 + 943 000 + 580000) (1 853 000)
Selling expense 330 000
General and administrative expense 943 000
Research and Development expense 580 000
Net Profit before tax (2 545 000 – 1 853 000) 692 000
Income Tax expense (144 000)
Net Operating Profit 548 000
To calculate the operating income for Filzinger Corporation, add up the relevant revenues and subtract the relevant expenses using a single-step income statement format.
Explanation:A single-step income statement format adds up all the relevant revenues and subtracts relevant expenses to arrive at the operating income. To calculate the operating income for Filzinger Corporation, we need to sum up all the revenues (sales revenue, interest revenue, gain on sale of investments) and subtract all the expenses (cost of goods sold, selling expense, general and administrative expense, interest expense, research and development expense, income tax expense).
In this case, the operating income can be calculated as follows:
Sales revenue + Interest revenue + Gain on sale of investments - Cost of goods sold - Selling expense - General and administrative expense - Interest expense - Research and development expense - Income tax expense
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Find the amount of money accrued at the end of 5 years when $5000 is deposited in a savings account drawing 5 1 4 % annual interest compounded continuously. (Round your answer to the nearest cent.)
Answer:
$6,424 .06
Explanation:
Present value (PV): $5,000
Rate: 5.14% per annual
Tenor: 5 years
The amount of money accrued at the end of 5 years is the future value (FV) of investment
FV = PV * (1+rate)^tenor
= $5,000 *(1+5.14%)^5
= $6,424 .06
Branch managers at First National Bank report to both a retail banking manager and a central operations officer. One of the managers is focused on sales and the other on control measures. What type of organizational structure does this most closely resemble
The organizational structure of branch managers at First National Bank resembles a matrix structure, where they report to both a retail banking manager and a central operations officer.
Explanation:The organizational structure of branch managers at First National Bank, where they report to both a retail banking manager and a central operations officer, resembles a matrix structure. In a matrix structure, employees report to multiple managers based on different aspects of their roles or functions. In this case, one manager focuses on sales and the other on control measures, allowing for a balance between achieving sales targets and implementing control measures to ensure compliance and risk management.
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You are terminating an employee.You need to congratulate your coworker on his recent promotion.You need to inform your boss that she has made a significant error in her data calculations.You need to inform your boss of a new lead.You want to schedule a meeting to update your boss on a client meeting.Which of the following is a situation that might call for an indirect strategy? Check all that apply.
You need to congratulate your coworker on his recent promotion.
You need to inform your boss that she has made a significant error in her data calculations.
You want to schedule a meeting to update your boss on a client meeting.
You need to inform your boss of a new lead.
You are terminating an employee.
Answer:
You are terminating an employee.You need to congratulate your coworker on his recent promotion.You need to inform your boss that she has made a significant error in her data calculations.You need to inform your boss of a new lead.You want to schedule a meeting to update your boss on a client meeting. The following are the situation that might call for an indirect strategy:
You need to congratulate your coworker on his recent promotion.You are terminating an employee.You need to inform your boss that she has made a significant error in her data calculations.An indirect strategy in business communication is used when delivering negative news or when the audience may resist the message. Thus, the situations that might need an indirect approach include informing your boss about a significant error in her data calculations, and terminating an employee.
Explanation:An indirect strategy in business communication is typically utilized when delivering negative news or when the audience may resist the message. Hence, the situations that might call for an indirect approach from the options provided are: 'You need to inform your boss that she has made a significant error in her data calculations' and 'You are terminating an employee'. The indirect approach can help soften the blow of these potentially contentious topics, by beginning with a neutral or positive statement before delivering the negative news.
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Which of these projects is likely to have the higher asset beta, other things equal? Why? a. The sales force for project A is paid a fixed annual salary. Project B’s sales force is paid by commissions only.b. Project C is a first-class-only airline. Project D is a well-established line of breakfast cereals.
Project A and Project C are likely to have higher asset betas due to their specific characteristics.
Explanation:The asset beta of a project depends on various factors, including the risk profile of the project. In the given scenarios, the project with a higher asset beta would be:
Option a: Project A, where the sales force is paid a fixed annual salary, is likely to have a higher asset beta compared to project B. This is because fixed salaries are a fixed cost for the project, which means that any changes in sales revenue would directly impact the project's profitability and risk.Option b: Project C, which is a first-class-only airline, is likely to have a higher asset beta compared to project D, which is a well-established line of breakfast cereals. This is because the airline industry is generally more volatile and exposed to economic fluctuations compared to the stable and established breakfast cereal industry.Learn more about Asset beta here:https://brainly.com/question/31649303
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"Sherry says, "All the paperwork is filled out wrong. We have to do everything over again." June replies, "No, I see at least three forms that are filled out correctly. We won't have to do it all again. Just most of it, probably." Which of the following statements are know to be true from what is presented above:"
a. Sherry advances a sound deductive argument.
b. Sherry does not advance an argument.
c. Sherry is right and June is wrong.
d. June advances an inductive argument.
e. June advances a deductive argument.
This statement June advances an inductive argument is know to be true from what is presented above
Explanation:
A strong argument is an inductive reasoning that is meant to be strong enough to make it impossible for the conclusion to have been false whether the premises were correct.
Therefore, success or effectiveness of an inductive argument is, unlike deductive argument, a matter of perspective.
Inductive arguments should take vast forms. Some people have the form of making claims on a population or only based on information from either a sample, a subset. Some mediated arguments draw conclusions through an appeal, authority or causal relationship.
A bank can decrease the degree of moral hazard if it a. Monitors the borrowers behaviors b. Placing covenants on the loan c. Both of the above d. None of the above
Answer:
C. Both of the above
Explanation:
Answer:
The correct answer is letter "C": Both of the above.
Explanation:
In banking, moral hazard represents all of those negative behaviors consumers have that could lead to incurring in debt. There are several reasons why borrowers can fall into dent but banks can reduce the losses risk by checking their credit reports to find out if borrowers are incurring much debt they can handle.
Besides, by setting clear loan terms, banks make sure borrowers are subject to penalties in case of not fulfilling their repayment obligations.
To determine how to crash activity times:
A. normal activity costs and costs under maximum crashing must be known.
B. shortest times with crashing must be known.
C. realize that new paths may become critical.
D. All of these are correct.
Answer:
D. All of these are correct.
Explanation:
It is the method used to reduce the time duration required for a project by spending less time on on the important activities. This will be achieved by committing more resources to the project thus leading to increase in the cost of project.