Companies that use debt in their capital structure are said to be using financial leverage. Using leverage can increase shareholder returns, but leverage also increases the risk that shareholders bear. Consider the following case: Sombra Corp. is considering a project that will require $600,000 in assets. The project will be financed with 100% equity. The company faces a tax rate of 35%. What will be the ROE (return on equity) for this project if it produces an EBIT (earnings before interest and taxes) of $145,000

Answers

Answer 1

Answer:

ROE = 15.7%

Explanation:

Return on Equity (R.O.E). Equity capital is the capital provided by the ordinary shareholders. So the ROE measures, in percentage, the amount made as profit for every one Dollar of equity capital invested . That is, how much return is earned (in %) on every dollar of equity capital invested.

It is calculated as follows:

ROE= (Profit/equity capital )× 100

Profit = EBIT - Tax = 145,000- (35%×145,000)=94,250

ROE = 94,250/600,000× 100 =15.7%

ROE = 15.7%


Related Questions

3
Hame and explain
of skills that should be possess by an entrepreneur

Answers

Answer:

1. Curiosity. Great entrepreneurs are tasked with identifying new problems, identifying potential niche opportunities, refactoring their existing business processes, and innovating. This necessitates a passion for various fields of study and business cases that are outside of one's comfort zone.

2. Time management. Prioritization, milestone definition, execution, and iteration are all critical. None of this would be possible without the proper project management and time allocation methodologies in place to complete the work.

3. Strategic thinking. Learning to break down a problem to its simplest components and identify growth opportunities. Inventive problem-solving and spotting the low-hanging fruit. Defining an MVP's scope and testing concepts in a short amount of time and on a tight budget.

Which statements about Section 1231 assets are true? Pick all that apply!!

Question options:

If Section 1231 assets are sold and the taxpayer has a realized loss, the loss is a fully deductible ordinary loss


If Section 1231 assets held long-term are sold for a realized gain, the taxpayer has a long term capital gain that is taxed at favorable capital gains rates


If Section 1231 assets held long-term are sold for a realized gain, the taxpayer has a potential long term capital gain that may be taxed at favorable capital gains rates but this result often does not occur because of recapture provisions.


If Section 1231 assets are sold and the taxpayer has a realized loss, the is limited like a capital loss

Answers

Answer:

The answer is below

Explanation:

Given that Section 1231 assets are a term that is used to describe the real or depreciable trading property acquired for more than a year. For example, landed property, buildings, etc.

Hence, in this case, the correct answer or statement to the question are:

1. If Section 1231 assets are sold and the taxpayer has a realized loss, the loss is a fully deductible ordinary loss

2. If Section 1231 assets held long-term are sold for a realized gain, the taxpayer has a potential long term capital gain that may be taxed at favorable capital gains rates but this result often does not occur

Need help ASAP Need help ASAP
Need help ASAP Need help ASAP
Need help ASAP Need help ASAP
Need help ASAP Need help ASAP ​

Answers

Answer:

number 3 lang ung X 1 2 4 5 heart na

[tex]\huge{\mathbb{\tt { ANSWER↓}}}[/tex]

[tex]\color{red}{\tt { HEART} \: \: }\color{black}{\tt{Lumahok \: sa \: panuntunan \: sa \: kalinisan.}}[/tex]

[tex]\color{red}{\tt { HEART} \: \: }\color{black}{\tt{Gumawa \: ng \: poster \: tungkol \: sa \: mabuting \: epekto \: ng \: kalikasan.}}[/tex]

[tex]\color{green}{\tt { WRONG} \: \: }\color{black}{\tt{Huwag \: Pansinin \: ang \: ordinansa \: o \: batas \: tungkol \: sa \: kalinisan.}}[/tex]

[tex]\color{red}{\tt { HEART} \: \: }\color{black}{\tt{Sundin \: ang \: batas \: sa \: pag-iwas \: o \: pagpigil \: sa \: polusyon.}}[/tex]

[tex]\color{red}{\tt { HEART} \: \: }\color{black}{\tt{Panatilihin \: ang \: kalinisan \: sa \: kapaligiran.}} \: [/tex]

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Miscellaneous costs associated with the purchase of new equipment? include:
Insurance costs before the equipment is ready for use $3,000
Maintenance costs before the equipment is ready for use 700
Insurance costs after the equipment is placed into service 1,400
Cost of trial run 800
Training costs for employees to learn how to use equipment 400
What is the amount assigned to the new? equipment?
A. $4,200.
B. $4,500.
C. $4,900.
D. $6,300.

Answers

Answer:

C. $4,900.

Explanation:

Determining the amount assigned to the new equipment

Details                                                                                                    Amount

Insurance costs before the equipment is ready for use                     $3,000

Add: Maintenance costs before the equipment is ready for use       $700

Add: Cost of trial run                                                                              $800

Add: Training costs for employees to learn how to use equipment  $400

Total costs assigned to the new equipment                                      $4,900

So, the correct options is option c.

no trespassing signs are an example of owners enforcing their right to

Control property
hi or enjoy property
or own property
or exclude people from your property
or exchange property

Answers

Answer:

I guess the ans is their right to exclude people from your property.

list of purpose & uses of assets​

Answers

Answer:

Explanation:

Assets may be used to store wealth, create income, and reduce future expenses.

Assets are reported on a company's balance sheet and are bought or created to increase a firm's value or benefit the firm's operations. An asset can be thought of as something that, in the future, can generate cash flow, reduce expenses, or improve sales, regardless of whether it's manufacturing equipment or a patent.

Hope this helped!!

Gilberto Company currently manufactures 75,000 units per year of one of its crucial parts. Variable costs are $2.45 per unit, fixed costs related to making this part are $85,000 per year, and allocated fixed costs are $72,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $3.65 per unit guaranteed for a three-year period.

Required:
Calculate the total incremental cost of making 75,000 and buying 75,000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier?

Answers

Answer:

$2,000

Explanation:

The total incremental cost of making 75,000 and buying 75,000 units.

Which of the following is a well written goal for developing a system?
O To institute a more efficient food preparation system
O To hire more housekeepers
To institute a two-week training program for the front desk employees to teach them how to use the new communication system
O To earn at least $5,000 in gift shop revenue more next month

Answers

a good written goal for developing a system is B

On November 15, 2018, X Corp., an accrual basis taxpayer, enters into a contract which will provide the corporation with the use of manufacturing equipment for the 5 year period beginning on December 1, 2018. X Corp. paid $100,000 for the 5-year period on December 1, 2018. How much, if any of the payment can X Corp. deduct in 2018

Answers

Answer: $20000

Explanation:

Since $100,000 is paid for the contract which will provide the use of manufacturing equipment for 5 years, the payment that can be deducted for each of the 5 years will be an equal payment.

Therefore, the payment that X Corp. can deduct in 2018 will be:

= $100,000 / 5

= $20000

what does CPI stand for and what is it used to measure?​

Answers

Answer:

please give me brainlist and follow

Explanation:

Consumer Price Index

The Consumer Price Index (CPI) is a measure of the average change overtime in the prices paid by urban consumers for a market basket of consumer goods and services.

Renaissance Creations restores antique stained glass windows. All jobs generate some breakage or improper cuts. This scrap can be sold to stained glass hobbyists. Renaissance Creations expects to incur approximately 45,000 direct labor hours during 2013. The following estimates are made in setting the predetermined overhead rate for 2013:
One job that Renaissance Creations completed during 2013 was a stained glass window of the Pierce family crest that took 125 hours, and direct labor is invoiced at $20 per hour. Total direct material cost for the job was $890. Scrap that was generated from this job was sold for $93.
a. What was the predetermined overhead rate (set on the basis of direct labor hours) for 2013?
b. What was the cost of the Pierce stained glass window?
c. Prepare the journal entry to record the sales value of the scrap from the Pierce stained glass window.
d. Assume instead that only certain jobs generate scrap. What was the cost of the Pierce stained glass window?

Answers

Answer:

hello your question has some missing information attached below is the missing information

answer :

a)  $7

b)  $4265

c) attached below

d) $4192

Explanation:

a) determine the predetermined overhead rate

= Total estimated overhead / estimated direct labor hour

Total estimated overhead = $315,000

estimated direct labor hour = 45,000

hence predetermined overhead rate = 315,000 / 45,000 = $7

b) calculate the cost of the Pierce stained glass window

Direct material cost = $890

number of labor hours = 125

direct labor cost = $20 per hour

predetermined overhead rate = $7

∴cost of glass window = [ ( 890 + ( 125 * 20 ) + ( 125 * 7 ) ] = $4265

c) Journal entry used to record sell of scrap

Account name                        

cash                                    $93

manufacture overhead                     $93

d) assuming only some jobs generate scrap

first we will calculate the overhead rate per hour

= ( $297000 + $25200) / 45,000 = $7.16

∴ Total cost of pierce stained glass window

= [ (direct material cost + number of labor hours ) + number of labor hours ( predetermined overhead rate ) ] - $93

= $4285 - $93  = $4192

People who are confident but not
about their own talents are more
impressive than people who don't believe in their own abilities.
A.aggressive
B.arrogant
C.insecure
D.embarrassed

Answers

Answer:

C. insecure  

when youre insecure you dont feel good about yourself or your abilities

Paul’s will creates a General Power of Appointment Trust (GPOA) that distributes income to his wife annually for life and gives his wife a general power of appointment over the assets in the trust. Which of the following statements is true regarding a GPOA Trust? A. The GPOA Trust only qualifies for the unlimited marital deduction if the trustee agrees to make distributions of principal to Paul’s trust. B. The unlimited marital deduction cannot be elected over the property transferred to the trust because Paul’s wife cannot appoint assets to herself, her creditors, or to anyone on her behalf. C. The unlimited marital deduction is not available because Paul’s wife does not have the current right to the assets in the trust. D. The GPOA Trust automatically qualifies for the unlimited marital deduction because Paul’s wife has a general power of appointment over the trust’s assets.

Answers

Answer: D. The GPOA Trust automatically qualifies for the unlimited marital deduction because Paul's wife has a general power of appointment over the trust's assets.

Explanation:

General Power of Appointment Trust (GPOA) refers to a power of appointment which is a legally binding provision that's contained in a trust such that the beneficiary possess the authority to alter the beneficiaries of the trust.

In this case, Paul's wife possess the power of appointment to anyone on her behalf. Therefore, The GPOA Trust automatically qualifies for the unlimited marital deduction because Paul's wife has a general power of appointment over the trust's assets.

Hakara Company has been using direct labor costs as the basis for assigning overhead to its many products. Under this allocation system product A has been assigned overhead of 21.70 per unit while product B has been assigned 10.44 per unit. Management feels that an ABC system will provide a more accurate allocation of the overhead costs and has collected the following cost pool and cost driver information.
Cost Pools Activity Costs Cost Driver Driver Consumption
Machine Setup 340,000 Setup Hours 5,000
Materials Handling 100,000 Pounds of materials 20,000
Electric Power 24,000 Kilowatt Hours 24,000
The following cost information pertains to the production of A and B, just two of its many products.
A B
Number of units produced 5,000 10,000
Direct Materials Cost 36,000 30,000
Direct Labor Costs 27,000 34,000
Number of Setup Hours 100 100
Pounds of Materials 2,000 1,000
Kilowatt Hours 2,000 2,000
Use Activity based costing to determine a unit cost for each product. (Round your final answers to 2 decimal places.)

Answers

What are you asking in this question I’m just confused, could you write it in the comments

On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 20 million, $5.00 par, common shares, to be distributed on July 1. The market price of Siewert common stock was $16 on June 13. Prepare a journal entry that summarizes the declaration and distribution of the stock split if it is to be effected in the form of a 100% stock dividend. What is the par per share after the split

Answers

Answer:

a. No journal entry is required.

b. Par per share after the split = $2.50

Explanation:

a. Prepare a journal entry that summarizes the declaration and distribution of the stock split if it is to be effected in the form of a 100% stock dividend.

No journal entry is required for this because the total value of the shares has not changed due to 2-for-1 stock split.

This is because the 2-for-1 stock split has only increased the number of shares outstanding by 2, but at the same time reduces the par value of the share by half making the total value of the shares to remain the same.

b. What is the par per share after the split.

As explained in a above, the effect of 2-for-1 stock split is to reduce the par value of the share by half.

Therefore, the par per share after the split can be calculated as follows:

Par per share after the split = Par per share before the split / 2 = $5 / 2 = $2.50

The corporate charter of Concord Corporation allows the issuance of a maximum of 4,300,000 shares of $1 par value common stock. During its first three years of operation, Michael issued 2,060,000 shares at $15 per share. It later acquired 88,000 of these shares as treasury stock for $25 per share. Based on the above information, answer the following questions:

a. How many shares were authorized?
b. How many shares were issued?
c. How many shares are outstanding?
d. What is the balance of the Common Stock account?
e. What is the balance of the Treasury Stock account?

Answers

Answer:

a. 4,300,000 shares

This is the maximum issuance allowed by the Corporate Charter so is the authorized share quantity.

b. 2,060,000 shares were issued as per the question

c. Number of shares outstanding = Number of shares issued - Treasury shares

= 2,060,000 - 88,000

= 1,972,000 shares

d. Balance in Common stock account:

= Number of shares issued * par value

= 2,060,000 * 1

= $2,060,000

e. Balance in Treasury:

= 800,000 * 25

= $2,200,000

Assume that the labor market for retail workers is generally unskilled. If a minimum wage is set in the labor market for retail workers and that this minimum wage is above the equilibrium wage in this particular labor market, then __________ . Select the correct answer below: there will be a shortage of retail workers in this labor market there will be a surplus of retail workers in this labor market. there will be a non-binding price floor there will be a non-effective minimum wage

Answers

Answer:

there will be a surplus of retail workers in this labor market.

Explanation:

In the attached diagram the scenario is illustrated.

When the minimum wage is above the equilibrium wage it means that the minimum wage is above what employees are willing to pay workers. So employees will be less wiling to pay this amount.

There will be a reduction in the number of available slots for workers.

On the other hand workers will receive higher wage than they expected but since the slots for work are now limited there will be a surplus of labour in the market

Break-even analysis can be used by a firm that produces more than one product, but:

a. the results are estimates, not exact values.
b. the firm must allocate some fixed cost to each of the products.
c. each product has its own break-even point.
d. the break-even point depends upon the proportion of sales generated by each of the products.
e. None of these statements is true.

Answers

Answer:

d. the break-even point depends upon the proportion of sales generated by each of the products.

Explanation:

Breakeven analysis is the method used to determine the number of units a firm must sell at a specific price to cover all costs. It is a concept that allow business owners or financial experts to determine and know what they need to sell either on a monthly or annual (yearly) basis, in order to be able to cover the costs of doing the business.

Basically, it helps us to determine the amount of revenue required for the smooth operation of a business, amount of money needed to cover both fixed and variable costs. Using the breakeven analysis, production costs can be categorized as;

1. Variable costs: these are costs that usually change with respect to changes in the level of production or output. Examples are direct labor, maintenance of equipment or machines, raw materials costs etc.

2. Fixed costs: these are the costs which are not directly related to the level of production or not affected by the quantity of output in an organization. Examples are rent, depreciation, administrative cost, research and development costs, marketing costs etc.

Break-even analysis can be used by a firm that produces more than one product, but the break-even point depends upon the proportion of sales generated by each of the products.

Colquhoun International purchases a warehouse for $311,000. The best estimate of the salvage value at the time of purchase was $16,000, and it is expected to be used for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determines that the warehouse will be useful for only another fifteen years.

Required:
a. Calculate annual depreciation expense for the first four years.
b. Determine the depreciation expense for the final fifteen years of the asset’s life.

Answers

Answer:

a. $11,800

b. $16,520

Explanation:

Depreciation expense using straight line method is calculeted as :

Deprecation expense = (Cost - Salvage Value) ÷ Estimated useful life

therefore,

Annual depreciation expense for the first four years.

Deprecation expense = ($311,000 - $16,000) ÷ 25 = $11,800

The depreciation expense for the final fifteen years of the asset’s life.

Depreciable Amount = Cost - Salvage Value - Accumulated depreciation

                                   = $311,000 - $16,000 - ($11,800 x 4)

                                   = $247,800

Deprecation expense = $247,800 ÷ 15 = $16,520

A purpose of the Core Inflation Index is _______________. Select the correct answer below: to help consumers understand the overall cost of living from month to month to be a gauge from which to make important government policy changes to help companies make decisions about production and hiring to help people determine global trends in the oil market

Answers

Answer:

to be a gauge from which to make important government policy changes.

Explanation:

Inflation can be defined as the persistent general rise in the price of goods and services in an economy at a specific period of time.

Generally, inflation usually causes the value of money to fall and as a result, it imposes more cost on an economy.

Furthermore, when this persistent rise in the price of goods and services in an economy becomes rapid, excessive, unbearable and out of control over a period of time, it is generally referred to as hyperinflation.

Core Inflation Index can be defined as a measure of the change in the price (cost) of goods and services over a specific period of time but excluding the products or items from the energy and food sector. The energy products and food items are excluded because they're transitory i.e having temporary price volatility and as such making their prices change easily.

In Economics, some of the common ways to measure the rate of inflation in a country is through the consumer price index (CPI), gross domestic product deflator (GDP Deflator), personal consumption expenditures price index (PCEPI), employment cost index (ECI), producer price index (PPI), etc.

Hence, a purpose of the Core Inflation Index is to be a gauge from which to make important government policy changes that would have a significant effect or impact on the lives of the citizens of the country.

CII measures the change in the price of goods and services minus the price change of food and energy. It is a tool to make important government policies.

What is Core Inflation Index?

CII is the difference between the change in the price of goods and services and with change in the price of food and energy. The food and energy factor is excluded because they are very volatile in nature.                                  

The purpose of CII is to be a gauge from which to make important government policy changes.  

Therefore, it can be said the above option aptly describes the purpose of CII.

Learn more about Core Inflation Index here:

https://brainly.com/question/15764055?

Prepare an income statement for the year ended December 31, through the gross profit for Baxter Company using the following information. Baxter Company sold 8,600 units at $125 per unit. Normal production is 9,000 units. (Do not round fixed overhead rate calculation when determining fixed factory overhead volume variance.)
Standard: 5 yards per unit at $6.30 per yard
Standard: 2.25 hours per unit at $15.00
Standard: variable overhead $1.05 per unit
Standard: fixed overhead $211,500 (budgeted and actual amount)
Actual yards used: 43,240 yards at $6.25 per yard
Actual hours worked: 19,100 at $14.90 per hour
Actual total factory overhead: $235,500

Answers

Answer:

Baxter Company

Baxter Company

Income Statement

For the year ended December 31

Sales revenue             $1,075,000

Cost of goods sold          755,252

Gross profit                     $319,748

Explanation:

a) Data and Calculations:

Normal production units =     9,000

Units sold at $125 per unit = 8,600

Ending inventory =                    400

Sales revenue = $1,075,000 (8,600 * $125)

Standard: 5 yards per unit at $6.30 per yard

Standard: 2.25 hours per unit at $15.00

Standard: variable overhead $1.05 per unit

Standard: fixed overhead $211,500 (budgeted and actual amount)

Cost of production:

Direct materials (43,240 yards at $6.25 per yard) = $270,250

Direct labor (19,100 at $14.90 per hour) =                    284,590

Total factory overhead incurred =                                235,500

Total cost of production =                                           $790,340

Units produced = 9,000

Cost per unit = $87.82

Cost of goods sold = 8,600 * $87.82 = $755,252

Cost of ending inventory = 400 * $87.82 = $35,128

Question 6 of 10
What is an advertising allowance?
O A. A temporary discount intended to encourage shoppers to buy
immediately
OB. A price reduction that a seller offers buyers if they transfer
ownership of a used item when they make a purchase
C. A price reduction that a producer gives to resellers to encourage
them to promote products
OD. A price reduction that a producer gives retailers in exchange for
making shelf space available
SUBMIT

Answers

Answer:

C. A price reduction that a producer gives to resellers to encourage

them to promote products

Explanation:

bcuz that's what advertising allowance is

Companies may use a special bank account solely for the purpose of paying employees, by depositing an amount equal to the total employees' net pay into the account each pay period and drawing the employees' payroll checks on the account. This account is a(n):_________
a) Payroll bank account.
b) Federal depository bank account.
c) Payroll register account.
d) Employee's Individual Earnings account.
e) Employees' bank account.

Answers

Answer:

A) Payroll bank account.

Explanation:

A payroll account can be regarded as

separate bank account that is been set up strictly for payroll. To avoid lumping all the expenses of the business in an account, the employee wages will be paid using the payroll bank account.

net wages of the employee will only be deposited in this account.It should be noted that Companies may use a special bank account solely for the purpose of paying employees, by depositing an amount equal to the total employees' net pay into the account each pay period and drawing the employees' payroll checks on the Payroll bank account.

Computing Depreciation and Accounting for a Change of Estimate Lambert Company acquired machinery costing $110,000 on January 2, 2019. At that time, Lambert estimated that the useful life of the equipment was 6 years and that the residual value would be $15,000 at the end of its useful life. Compute depreciation expense for this asset for 2019, 2020, and 2021 using the: a. straight-line method. Round to the nearest dollar. 2019 Answer 2020 Answer 2021 Answer b. double-declining-balance method. Round to the nearest dollar. 2019 Answer 2020 Answer 2021 Answer c. Assume that on January 2, 2021, Lambert revised its estimate of the useful life to 7 years and changed its estimate of the residual value to $10,000. What would be the new depreciation expense in 2021 for each of the above depreciation methods

Answers

Answer: please see answers in explanation column

Explanation:

a) Under straight-line method,

 Depreciation expense =(Cost - residual value) ÷ No of years =

= ($110,000 - $15,000) ÷ 6 years = $15,833  which refers to the yearly depreciation expense.

Therefore,  the yearly depreciation expense of $15,833 will be applied to the Years 2019, 2020 and 2021.

Total depreciation for all the three years equals  

 $15,833 x  3 years = $47,499.

(b) The double-declining method

which is  2 x  Straight - Line Depreciation Percentage x Book value

 Straight - Line Depreciation Percentage

100% ÷ 6 years = 16.67%,

 Therefore, Year 2019= 2 x  16.67% x  $110,000 = $36,663

Year 2020=2 x  16.67% x  $73,337 ($110,000 - $36,663) = $24,443

Year 2021=2 x  16.67% x $48,894 ($73,337 - $24,443) = $16,296

The total of the three years ie 2019 to 2021  =$77,402

(c) Given that in 2021 which is  after 2 years, the revised estimated useful life becomes 7 years and the residual value is $10,000

Depreciation Using  the straight-line method becomes  

Depreciation expense =(Cost - residual value) ÷ No of years

But Net Book Value, which is the cost  at the end of 2019  

$110,000 - $15,833  x  2 years = $78,334

Therefore, Depreciation expense= ($78,334 - $10,000) ÷ 7 years = $9,762  

Also,

Using double-declining method,

Straight - Line Depreciation Percentage = 100% ÷ 7 years = 14.29%,

Year 2021,

2 x 14.29% x $48,894 ($73,337 - $24,443) = $13,969

Firm ML, a non-corporate taxpayer, exchanged residential rental property plus $15,000 cash for 20 acres of investment land with a $200,000 FMV. ML used the straight-line method to compute depreciation on the rental property.
a. Assuming that ML's exchange was negotiated at arm's length, what is the FMV of the rental property?
b. If the adjusted basis of the rental property is $158,000, compute ML's realized and recognized gain. What is the character of the recognized gain?
c. Compute ML's basis in the 20 acres of investment land.

Answers

Answer:

A)  $215,000

B)  realized gain = $57,000

    recognized gain = $15,000

C) $158,000

Explanation:

cash exchanged with the rental property ( boot ) = $15,00

A) Assuming ML's exchange is done at arm's length

FMV of property = $200,000 + $15,000 = $215,000

B) Taking adjusted basis of rental property = $158,000

ML's realized gain = FMV of property at arm's length - adjusted basis

                              = $215000 - $158000 = $57,000

ML's recognized gain = $15,000

The character of the recognized gain is that it will be lower of the boot amount or realized gain and this is because no gain or loss is registered/recognized in the transaction ( exchange ) except with the boot received

C) Determine ML's basis in the 20 acres of investment land

= $158,000

All of the following are examples of current account transactions EXCEPT: Elimination Tool Select one answer A The United States purchases 200 tons of Canadian bacon. B Argentina purchases 10,000 French berets. C Mexico purchases 500 Spanish matador outfits. D Germany pays 1 million euro for the services of Swiss accountants. E China purchases $10 billion of United States government securities.

Answers

Answer:

E

Explanation:

the current account of a country measures the value of the trade balance, transfers and the net income

the component of the current account includes

trade balance - it measures the value of the  import and export of goods and services of a country.

net income - measures the value of the income received by a country's residents less the income paid to foreigners

transfers - it includes income sent home by a country's citizens working outside the country

Asset income - measures changes in the asset income

this transaction - China purchases $10 billion of United States government securities - would be included in the capital account

Laura is an investor and a limited partner in a limited partnership. Two years after she becomes a limited partner, Laura thinks that the general partners are not doing a very good job managing the affairs of the limited partnership and participates in the management of the limited partnership. While she is participating in management, a bank loans $1 million to the limited partnership, believing that Laura is a general partner. If the limited partnership defaults on the $1 million loan, which of the following holds well?
A. Laura has unlimited personal liability as a limited partner.
B. Laura is personally liable as the bank, in good faith, thought she is a general partner.
C. Laura's liability is restricted to the value of her capital investment in the partnership.
D. Laura is not personally liable as she is a limited partner on paper.

Answers

Answer

Option B. Laura is personally liable as the bank, in good faith, thought she is a general partner

Explanation:

Limited Partnership (LP)

This is Business entity that exists in line with state statutes that gives limited liability to some of its members who called limited partners.

RULPA

This is simply called Revised Uniform Limited Partnership Act. It is the model for Limited Partnership legislation in most states.

Limited Partner

This is a part or member of a limited partnership.it is that individual who is not involved in controlling the business and whose liability is limited to amount invested in the business.

General Partner

It is simply a member in a limited (or general) partnership who controls the business and has unlimited personal liability.

In the above scenario, Laura will be taken as a general partner and will be held personally accountable or liable for the loan, and also along with the general partners of the limited partnership.The rule of RULPA gives the right for a limited partner to be involved in the management of the partnership’s affairs and not losing the limited liability if the limited partner has been formally employed by the partnership to be an executive of the partnership.

This is weird what is ya favorite anime character

Answers

Answer:

naruto

Explanation:

He is my favourite anime character.........

Portions of the financial statements for Myriad Products are provided below.
MYRIAD PRODUCTS COMPANY
Income Statement
For the Year Ended December 31, 2016
($ in millions)
Sales $ 620
Cost of goods sold (217)
Gross margin 403
Salaries expense $ 85
Depreciation expense 72
Patent amortization expense 5
Interest expense 12
Loss on sale of land 3 (177)
Income before taxes 226
Income tax expense (113)
Net Income $ 113
MYRIAD PRODUCTS COMPANY
Selected Accounts from Comparative Balance Sheets
December 31, 2016 and 2015
($ in millions)
Year
2016 2015 Change
Cash $ 108 $ 104 $ 4
Accounts receivable 224 238 (14 )
Inventory 442 454 (12 )
Accounts payable 150 142 8
Salaries payable 82 90 (8)
Interest payable 31 24 7
Income taxes payable 21 14 7
Required:
Prepare the cash flows from operating activities section of the statement of cash flows for Myriad Products Company using the indirect method. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10.). Amounts to be deducted should be indicated with a minus sign.)

Answers

Answer:

MYRIAD PRODUCTS COMPANY

Cash flow from Operating Activities

                                                                               ($ in millions)

Net Income                                                                   $ 113

Adjustment of non-cash items :

Depreciation expense                                                  $72

Patent amortization expense                                         $5

Loss on sale of land                                                        $3

Adjustment to Changes in Working Capital :

Decrease in Accounts receivable                                $14

Decrease in Inventory                                                  $12

Increase in Accounts payable                                      $8

Decrease in Salaries payable                                      ($8)

Increase in Interest payable                                          $7

Increase in Income taxes payable                                $7

Net Cash Provided by Operating Activities              $219

Explanation:

The Indirect method reconciles the Net Income and Operating Cash flow by adjusting for non- cash items and changes in working capital during the year.

Henderson Company manufactures electronics. The Calculator Division (an investment center) manufactures handheld calculators. The division can purchase the batteries used in the calculators from the Battery Division (another investment center) or from an outside vendor. The cost to purchase batteries from the outside vendor is $5. The transfer price to purchase from the Battery Division is $6. The Battery Division also sells to outside customers. The sales price is $6, and the variable cost is $3. The Battery Division has excess capacity.

Requird
a. Should the Calculator Division purchase from the Battery Division or the outside vendor?
b. If Henderson Company allows division managers to negotiate transfer prices, what is the maximum transfer price the manager of the Caiculator Division should consider?

Answers

Answer:

a

Explanation:

The a) Calculator Division should consider choosing the outside vendor rather than the battery division because it costs lower to acquire, and currently transfer price is not appropriate to use. b) On the basis of our computation and situation, the market price from the outside vendor will be used, which is worth $5.

What is the calculation?

In this short exercise, we are expected to answer four requirements under the Henderson Company - a manufacturer of electronics. This will be focusing on the subject of Transfer prices.

First, let us understand what is a transfer price. As such, this is the price or value of a single unit of material that is traded between divisions within the same company.

Whenever a division requires materials for its operations, it can transact with other divisions to obtain the items at a lower price than the market price. Within the contribution margin of the goods, the price might be negotiated.

Furthermore, if the division is operating at capacity, it signifies that they are producing at their maximum capacity. This causes internal management disagreements regarding whether it is better to sell to customers or to employees. As a result, the minimum transfer price is typically larger than or equal to the selling price of the products. To start, we are to identify the formula for the contribution margin for the basis of the transfer price. Sales price per unit, less: variable cost, contribution margin per unit.

From the problem, the amounts are listed below:

Market Price (outside vendor)    $5

Transfer Price (Battery Division)    $6

Sales price    $6

Variable Cost    $3

To find our negotiable range for transfer price, we will compute the contribution margin of the battery division. Sales price per unit, less: variable cost, contribution margin per unit. This means that within the $3 difference the transfer price can be negotiated. In this requirement, we are asked where should the Calculator Division purchase the batteries they need for the calculators. From the problem, we had learned that the market price worth $5 is lower than the selling price of the battery division which amounts to $6. In conclusion, the Calculator Division should consider choosing the outside vendor rather than the battery division because it costs lower to acquire, and currently transfer price is not appropriate to use.

The second requirement is identifying the maximum transfer price the Calculator Division needs to consider. On the basis of our computation and situation, the market price from the outside vendor will be used, which is worth $5.

Learn more about division, here:

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