Answer:
see explanation
Explanation:
Cost of goods sold = Opening Finished Goods + Cost of Goods Manufactured - Ending Finished Goods
Therefore apply the 22,000 to determine the Cost of Goods Manufactured and then the Cost of goods sold.
Project Z will result in unit sales of 2,250, at a price of $650 each. The variable cost (VC) of each unit is $325. The cost accountant will allocate overhead on the existing plant to Project Z at a rate of $21 per unit. A special piece of equipment must be leased for $75,000 per year for purposes related solely to Project Z. Project Z will reduce sales of the same company’s Project X by 900 units (selling price of $950 with variable cost of $510 and overhead allocation of $32 per unit). What is the total incremental cash flow for Project Z?
Measuring actual performance can be done through:
a.
Assessing the behavior of employee
b.
Assessing the output of employee
c.
Both are correct
d.
Non are correct
Answer: c. Both are correct
Explanation:
Assessing the output of an employee shows some of the actual performance of that employee as it shows just how much they have contributed to the overall output of the company.
Assessing employee behavior also shows actual performance because behavior can influence output for example, how often the employee shows up to work and their work ethic when there. In the service industry as well, behavior can affect company sales as people react to how they are treated. It is therefore an important matric for actual performance evaluation.
Sanders Co. is planning to finance an expansion of its operations by borrowing $49,200. City Bank has agreed to loan Sanders the funds. Sanders has two repayment options: (1) to issue a note with the principal due in 10 years and with interest payable annually or (2) to issue a note to repay $4,920 of the principal each year along with the annual interest based on the unpaid principal balance. Assume the interest rate is 9.5 percent for each option.
Required
a. What amount of interest will Sanders pay in year 1 under option 1 and under option 2?
Amount of Interest
Under option 1
Under option 2
b. Wihat anount of insyinyder option 1 and under option 27 (Round your final answers to the nearest dollar amount)
Amount of Interest
Under option 1
Under option 2
c. Which option is more advantageous to Sanders?
Option 1
Option 2
Answer:
Following are the responses to the given question:
Explanation:
For point a:
Interest amounts are paid by sanders in year 1 Under option 1 and 2
In option 1
Due principal [tex]\$49,200[/tex]
Rate of Interest [tex]9.50\%[/tex]
Expanse Interest [tex]\$4,674[/tex]
In Option 2
Due principal [tex]\$49,200[/tex]
Rate of Interest [tex]9.50\%[/tex]
Expanse Interest [tex]\$4,674[/tex]
For point b:
Interest amounts are paid by sanders in year 1 Under option 1 and 2
In option 1
Due principal [tex]\$49,200[/tex]
Rate of Interest [tex]9.50\%[/tex]
Expanse Interest [tex]\$4,674[/tex]
In Option 2
Due principal [tex]\$44,280[/tex]
Rate of Interest [tex]9.50\%[/tex]
Expanse Interest [tex]\$4,207[/tex]
For point c:
Option 2 is better for Sanders since it reduces investment expenditure
he information systems department prides itself on being on the edge of high-tech course offerings. They were the first department to create online classes and the first to battle all of the issues associated with these offerings. When Wally interviewed for the new assistant professor position, he knew that his subcutaneous chip was only a hiring decision away. Corporate culture in this department is probably most affected by: The environment.
Answer: Technology
Explanation:
The options relating to the question are:
A) The environment.
B) Technology.
C) Geographical location.
D) Critical incidents.
Based on the information given in the question, we can infer that Corporate culture in this department is probably most affected by technology.
Since they were the first department to create online classes and also they were the first to solve the issues that were associated with these offerings, it simply means that they department was mostly affected by technology.
Lastly, Wally knowing that his subcutaneous chip was only a hiring decision away was because he knew that the department focused on technology.
Other options such as environment, geographical location and critical incidents are wrong in this case.
On January 1, 2021, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The company borrowed $2,000,000 at 13% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2021: $5,000,000, 17% bonds $3,000,000, 13% long-term note Construction expenditures incurred during 2021 were as follows: January 1 $ 820,000 March 31 1,420,000 June 30 1,064,000 September 30 820,000 December 31 620,000 Required: Calculate the amount of interest capitalized for 2021 using the specific interest method.
Answer:
999,999,999 because we'll 999,999,999
A tenant occupying 20,000 square feet in your building has two years remaining on their lease. You have a good relationship with this tenant and you assess the probability that they will renew their lease at 75%. If your tenant renews the lease, they will pay $15/sf in rent. If the tenant vacates, you expect that a new tenant will pay $18/sf. What is the gross rental income you expect to receive for this space in the year after the lease expires
Answer: $315000
Explanation:
From the information given in the question, the gross rental income that one will expect to receive for this space in the year after the lease expires goes thus:
= [(75% x 15) + (25% x 18)] x 20,000
= [(0.75 × 15) + (0.25 × 18)] × 20000
= (11.25 + 4.5) × 20000
= 15.75 × 20000
= 315,000
Therefore, the gross rental income is $315000
Juan's investment portfolio was valued at $125,640 at the beginning of the year. during the year, juan received $603 in interest income and $298 in dividend income. juan also sold shares of stock and realized $1,459 in capital gains. juan's portfolio is valued at $142,608 at the end of the year. all income and realized gains were reinvested. no funds were contributed or withdrawn during the year. what is the amount of income juan must declare this year for income tax purposes?
Answer:
$2,360
Explanation:
Calculation to determine the amount of income juan must declare this year for income tax purposes
Using this formula
Income tax =Interest Income+Dividend Income+Capital gain
Let plug in the formula
Income tax=$603+$298+$1,459
Income tax=$2,360
Therefore the amount of income juan must declare this year for income tax purposes is $2,360
factorize the following algebraic expressions.
m²-64n⁴
Answer:
Factorization of the expression = [m - 8n²][m + 8n²]
Explanation:
Given expression;
m²- 64n⁴
Find:
Factorization of the expression
Computation:
m²- 64n⁴
m²- [(8n²)]²
Using formula;
a² - b² = (a + b)(a - b)
By putting value in above formula;
So,
Factorization of the expression = m²- [(8n²)]²
Factorization of the expression = (m)²- [(8n²)]²
Factorization of the expression = [m - 8n²][m + 8n²]
Extreme Adventurer, an outdoor nature magazine, marketed to potential customers who recently purchased camping equipment and four-wheel drive trucks. At the end of its marketing message pitch, the magazine exclaimed, “Tired of sitting in front of your computer? Explore the exciting outdoor world of nature. Subscribe today!” What does this call to action have the potential to do?
Answer:
potential customers who recently purchased camping equipment and four-wheel drive trucks.
Explanation:
The call to action has a huge potential hidden in reaching out to the customers and making them call for outdoor nature and adventure. The magazine tries to catch the reader's attention by making claims such as tired of sitting in front of your computer. Those people who usually stay at home and are unable to move out due to some reason can use their purchased camping equipment and four-wheel-drive trucks.Exercise
1. State and explain 5 characteristics of the
youth
What is one specific requirement of a negotiable instrument?
O A. It must involve an exchange of goods.
B. It must provide for a fixed amount of money.
O C. It must be agreed to orally.
O D. It must involve two parties who are friends.
Answer:
B
Explanation:
On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances:
Accounts Debit Credit
Cash $58,700
Accounts Receivable 25,000
Allowance for Uncollectible Accounts $2,200
Inventory 36,300
Notes Receivable (5%, due in 2 years) 12,000
Land 155,000
Accounts Payable 14,800
Common Stock 220,000
Retained Earnings 50,000
Totals $287,000 $287,000
During January 2021, the following transactions occur:
January 1 Purchase equipment for $19,500. The company estimates a residual value of $1,500 and a five-year service life.
January 4 Pay cash on accounts payable, $9,500.
January 8 Purchase additional inventory on account, $82,900.
January 15 Receive cash on accounts receivable, $22,000.
January 19 Pay cash for salaries, $29,800.
January 28 Pay cash for January utilities, $16,500.
January 30 Firework sales for January total $220,000. All of these sales are on account. The cost of the units sold is $115,000.
Information for adjusting entries:
Depreciation on the equipment for the month of January is calculated using the straight-line method.
The company estimates future uncollectible accounts. The company determines $3,000 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 3% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)
Accrued interest revenue on notes receivable for January.
Unpaid salaries at the end of January are $32,600.
Accrued income taxes at the end of January are $9,000.
Required:
a. Prepare a multiple-step income statement for the period ended January 31, 2021.
b. Prepare a classified balance sheet as of January 31, 2021.
c. Record closing entries.
Answer:
TNT Fireworks
a. Multiple-step Income Statement for the period ended January 31, 2021:
Sales revenue $220,000
Cost of goods sold 115,000
Gross profit $105,000
Interest Revenue 50
Expenses:
Depreciation exp. 3,600
Salaries expense 62,400
Utilities expense 16,500
Bad debt expense 5,900 $88,400
Income before tax $16,650
Income taxes exp 9,000
Net income $7,650
Beginning Retained Earnings 50,000
Ending Retained earnings $57,650
b. Classified Balance Sheet as of January 31, 2021:
Assets
Current assets:
Cash $5,400
Accounts Receivable 223,000
Allowance for
Uncollectible Accounts (8,100)
Interest Receivable 50
Inventory 4,200 $224,550
Long-term assets
Notes Receivable (5%,
due in 2 years) 12,000
Land 155,000
Equipment 19,500
Depreciation (3,600) $182,900
Total assets $407,450
Liabilities and equity
Current liabilities:
Accounts Payable $88,200
Salaries payable 32,600
Income taxes payable 9,000
Total liabilities $129,800
Equity:
Common Stock $220,000
Retained Earnings 57,650
Total equity $277,650
Total liabilities and equity $407,450
c. Closing Entries:
Accounts Debit Credit
Sales revenue $220,000
Interest Revenue 50
Income summary $220,050
To close sales and interest revenue to the income summary.
Income Summary $212,400
Cost of goods sold $115,000
Depreciation exp. 3,600
Salaries expense 62,400
Utilities expense 16,500
Bad debt expense 5,900
Income taxes exp 9,000
To close cost of goods sold and expenses to the income summary.
Income summary $7,650
Retained earnings $7,650
To close the net income to the retained earnings.
Explanation:
a) Data and Calculations:
Account Balances:
Accounts Debit Credit
Cash $58,700
Accounts Receivable 25,000
Allowance for
Uncollectible Accounts $2,200
Inventory 36,300
Notes Receivable (5%,
due in 2 years) 12,000
Land 155,000
Accounts Payable 14,800
Common Stock 220,000
Retained Earnings 50,000
Totals $287,000 $287,000
Analysis of Transactions:
January 1 Equipment $19,500 Cash $19,500
January 4 Accounts payable, $9,500 Cash $9,500
January 8 Inventory $82,900 Accounts payable $82,900
January 15 Cash $22,000 Accounts receivable, $22,000
January 19 Salaries expense $29,800 Cash $29,800
January 28 Utilities expense, $16,500 Cash $16,500
January 30 Accounts receivable $220,000 Sales revenue $220,000
Cost goods sold $115,000 Inventory $115,000
Accounts Debit Credit
Cash $58,700 - 19,500 -9,500 +22,000 - 29,800 - 16,500
= $5,400
Accounts Receivable 25,000 - 22,000 + 220,000 = 223,000
Interest Receivable 50
Allowance for
Uncollectible Accounts $2,200 + 5,900 = 8,100
Inventory 36,300 + 82,900 - 115,000 = 4,200
Notes Receivable (5%,
due in 2 years) 12,000
Land 155,000
Equipment 19,500
Accumulated depreciation 3,600
Accounts Payable 14,800 - 9,500 + 82,900 = 88,200
Salaries payable 32,600
Income Taxes Payable 9,000
Common Stock 220,000
Retained Earnings 50,000
Sales revenue 220,000
Interest Revenue 50
Cost of goods sold 115,000
Depreciation exp. 3,600
Salaries expense 29,800 + 32,600 = 62,400
Utilities expense 16,500
Bad debt expense 5,900
Income Taxes 9,000
Totals $287,000 $287,000
Adjusting entries:
Depreciation expenses $3,600 Accumulated depreciation $3,600
Allowance for Uncollectible Accounts = $1,500
Allowance for uncollectible accounts = $6,600 ($220,000 * 3%)
Total allowance for uncollectible = $8,100 ($1,500 + $6,600)
Bad debts expense $ 5,900 Allowance for Uncollectible $5,900
Interest Receivable $50 Interest Revenue = $50 ($12,000 * 5% * 1/12)
Salaries Expense $32,600 Salaries payable $32,600
Income Taxes $9,000 Income Taxes Payable $9,000
Adjusted Trial Balance
As of January 31, 2021
Accounts Debit Credit
Cash $5,400
Accounts Receivable 223,000
Interest Receivable 50
Allowance for
Uncollectible Accounts $8,100
Inventory 4,200
Notes Receivable (5%,
due in 2 years) 12,000
Land 155,000
Equipment 19,500
Accumulated depreciation 3,600
Accounts Payable 88,200
Salaries payable 32,600
Income taxes payable 9,000
Common Stock 220,000
Retained Earnings 50,000
Sales revenue 220,000
Interest Revenue 50
Cost of goods sold 115,000
Depreciation exp. 3,600
Salaries expense 62,400
Utilities expense 16,500
Bad debt expense 5,900
Income taxes exp 9,000
Totals $631,550 $631,550
Write a paragraph about Bad customer service
Answer:
Bad customer service can be defined as when a business fails to meet the customer expectations in terms of service quality, response time, or overall customer experience. ... According to NewVoiceMedia, an estimated $62 billion is lost by U.S. businesses each year following negative customer experiences.Poor customer service can cause employees of a business to feel insecure and unhappy at work. Nobody likes being subject to anger from unpleased customers and without sufficient strategies in place to deal with these complaints, employees are far more likely to feel dissatisfied with their jobIggy Company is considering three capital expenditure projects. Relevant data for the projects are as follows.
Project Investment Annual Income Life of Project
22A $243,500 $17,320 6 years
23A 271,400 20,600 9 years
24A 283,000 15,700 7 years
Annual income is constant over the life of the project. Each project is expected to have zero salvage value at the end of the project. Iggy Company uses the straight-line method of depreciation.
Determine the internal rate of return for each project. (Round answers 0 decimal places)
Answer:
22A = 19.98 %
Explanation:
the internal rate of return for each project.
Kyle Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 715,000 shares of stock outstanding. Under Plan II, there would be 465,000 shares of stock outstanding and $6.75 million in debt outstanding. The interest rate on the debt is 7 percent, and there are no taxes.
a. Assume that EBIT is $1.6 million. Compute the EPS for both Plan I and Plan II.
b. Assume that EBIT is $3.1 million. Compute the EPS for both Plan I and Plan II.
c. What is the break-even EBIT?
Answer:
EPS = (Net income - Dividends) / Average number of share
a. Plan 1
Number of share = 715,000
EPS = $1,600,000/715,000
EPS = 2.23 (EBIT = Net Income as Interest and tax are 0)
Plan 2
Net income = EBIT = $1.6 million = $1,600,000
Interest = 0.07*$6,750,000 = $472,500
EBT = $1,600,000 - $472,500 = $1,127,500
Tax = 0
Net Income = 1,127,500 (1)
Number of share = 465,000
EPS = $1,127,500/465000
EPS = 2.42 (Net Income from 1)
b. Plan 1
EPS = $3,100,000/715000 = $4.33
Plan 2
When EBIT = $3,100,000
Interest = 0.07*$6,750,000 = $472,500
Net Income = $3,100,000 - $472,500 = $2,627,500
EPS = $2,627,500/465,000
EPS = 5.65 (From 2)
c. Plan 1 EBIT = Plan 2 EBIT to calculate break-even EBIT
EBIT/715,000 = (EBIT - 0.07*$6,750,000)/465,000
EBIT = $1,351,350
Whistle Works sells each whistle for $12. It takes 3 ounces of metal to produce each whistle at a cost of $0.50 per ounce. They prefer to have 10% of materials required for the following month's production in ending inventory as well. How many ounces of direct materials does Whistle Works need to purchase in October to meet production needs
The question is incomplete. The complete Question is as follows,
Whistle Works manufacturers safety whistle keychains. They have the following information available to prepare their master budget:
Units to be produced
October 4,500
November 4,750
December 5,200
Whistle Works sells each whistle for $12. It takes 3 ounces of metal to produce each whistle at a cost of $0.50 per ounce. They prefer to have 10% of materials required for the following month's production in ending inventory as well. How many ounces of direct materials does Whistle Works need to purchase in October to meet production needs?
A) 4,500 ounces
B) 13,575 ounces
C) 13,425 ounces
D) 4,525 ounces
Answer:
Purchases = 13575 ounces
Option B is the correct answer
Explanation:
To calculate the purchases of material for October, we first need to calculate the inventory needed to produce the desired number of units in October along with the desired ending inventory and adjust it for the available opening inventory at start of October.
Material available at Start - October = 10% * 4500 units * 3 ounces per unit Material available at Start - October = 1350 ounces
Material required at end - October = 10% * 4750 units * 3 ounces per unit
Material required at end - October = 1425 ounces
Material required to produce required units in October = 4500 * 3 = 13500
Production = Opening Inventory + Purchases - Closing Inventory
13500 = 1350 + Purchases - 1425
13500 + 1425 - 1350 = Purchases
Purchases = 13575 ounces
Which of the following is NOT an example of fixed expenses?
Select the best answer from the choices provided.
A.
Health insurance premium
B.
Interest on college loans
C.
Apartment Rent
D.
The amount of gas to fill up your tank
Answer:
A.
Health insurance premium
Explanation:
helping
Jasmine Corporation purchased inventory costing $125,000 and sold 75% of the goods for $163,750. All purchases and sales were on account. Jasmine later collected 25% of the accounts receivable. Assume that sales returns are nonexistent.
1. Journalize these transactions for Jasmine, which uses the perpetual inventory system.
2. For these transactions, show what Jasmine will report for inventory, revenues, and expenses on its financial statement at the end of the month. Report gross profit on the appropriate statement. Assume beginning inventory is $0.
Answer:
Part 1
Purchase journal
Debit : Merchandise Inventory $125,000
Credit : Accounts Payable $125,000
Sales journal
Debit : Accounts Receivable $163,750
Debit : Cost of Sales ($125,000 x 75%) $93,750
Credit : Sales Revenue $163,750
Credit : Inventory $93,750
Collection of Payments journal
Debit : Cash ($163,750 x 25%) $40,938
Credit : Accounts Receivable $40,938
Part 2
Inventory = $31,250
revenues = $163,750
expenses = $93,750
gross profit = $70,000
Explanation:
inventory = Purchases - Cost of sales
= $125,000 - $93,750
= $31,250
revenues = Sales to Customers paid up or not
= $163,750
expenses = Cost of sales
= $93,750
gross profit = Sales - Cost of sales
= $163,750 - $93,750
= $70,000
Beyer Company is considering the purchase of an asset for $245,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Assume that Beyer requires a 9% return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 Year 2 Year 3 Year 4 Year 5 Total Net cash flows $ 76,000 $ 55,000 $ 82,000 $ 158,000 $ 37,000 $ 408,000 a. Compute the net present value of this investment. b. Should Beyer accept the investment
Answer:
hi hi hi hi hi hi hi hi hi hi hi hi hi hi łíłśIdentify which of the following statements are true for the corporate form of organization. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
1. Ownership rights cannot be easily transferred
2. Owners have unlimited liability for corporate debts
3. Capital is more easily accumulated than with most other forms of organization.
4. Corporate income that is distributed to shareholders is usually taxed twice.
5. It is a separate legal entity. It has a limited life.
6. Owners are not agents of the corporation.
Answer: See explanation
Explanation:
1. Ownership rights cannot be easily transferred - False
The ownership rights can be transferred easily.
2. Owners have unlimited liability for corporate debts - False
They have a limited liability.
3. Capital is more easily accumulated than with most other forms of organization. - True
This is true as shares can be issued in order to generate capital.
4. Corporate income that is distributed to shareholders is usually taxed twice. -
True
5. It is a separate legal entity. - True
The corporate form of organization enjoys separate existence as their assets and the liabilities of the organization are different from their owners.
6. It has a limited life. - False
They've an unlimited life.
7. Owners are not agents of the corporation. - True
This is true. It should be noted that the owners aren't the agents of the corporation.
At the beginning of 2020, Concord Company acquired a mine for $3,251,600. Of this amount, $124,000 was ascribed to the land value and the remaining portion to the minerals in the mine. Surveys conducted by geologists have indicated that approximately 12,100,000 units of ore appear to be in the mine. Concord incurred $210,800 of development costs associated with this mine prior to any extraction of minerals. It also determined that the fair value of its obligation to prepare the land for an alternative use when all of the mineral has been removed was $49,600. During 2020, 2,634,000 units of ore were extracted and 1,894,000 of these units were sold.
Required:
a. Compute the total amount of depletion for 2020.
b. Compute the amount that is charged as an expense for 2014 for the cost of the minerals sold during 2020.
Answer:
A. $737,520
B. $530,320
Explanation:
a. Computation for the total amount of depletion for 2020.
First step is to calculate the Depletion Rate
Depletion Rate = ($3,251,600 - $124,000 + $49,600 + $210,800)/12,100,000
Depletion Rate= $3,388,000/ 12,100,000
Depletion Rate= 0.28
Now let calculate the total amount of depletion for 2020.
2020 Total amount of depletion= 0.28 × $2,634,000
2020 Total amount of depletion= $737,520
Therefore the total amount of depletion for 2020 is $737,520
B. Computation for the amount that is charged as an expense for 2014 for the cost of the minerals sold during 2020.
Expense amount charged= ($737,520/$2,634,000)* 1,894,000
Expense amount charged=0.28 *1,894,000
Expense amount charged=$530,320
Therefore the amount that is charged as an expense for 2014 for the cost of the minerals sold during 2020 is $530,320
White, Gray, and Greene enter into a contract to form a partnership, but the contract says nothing about the sharing of profits and losses. Which of the following will take place? A. Profits and losses will be shared in a ratio based on the dollar amount of their capital investments. B. Profits will be shared equally; losses will be absorbed based on dollar amount of capital investment. C. Profits will be based on amount of time each partner spends working for the firm; losses will be shared equally. D. Profits and losses will be shared equally.
Answer:
D. Profits and losses will be shared equally.
What does an effective business begin with?
Answer:
trust, rules and schedules, a plan on what your selling, those products
Explanation:
I'm just saying what I think makes an effective business
Exercise 23-2 Make or buy LO P1 Gelb Company currently manufactures 43,000 units per year of a key component for its manufacturing process. Variable costs are $5.15 per unit, fixed costs related to making this component are $73,000 per year, and allocated fixed costs are $78,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.70 per unit. Calculate the total incremental cost of making 43,000 units and buying 43,000 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier
Answer:
If the company buys the units, it will save $135,350.
Explanation:
Giving the following information:
Number of units= 43,000
Make in-house:
Variable costs are $5.15 per unit
Avoidable fixed costs= $73,000
Buy:
Unitary cost= $3.7
We will take into account only the incremental cost, therefore, the unavoidable fixed costs will not be taken into account.
Total cost of production= 43,000*5.15 + 73,000= $294,450
Total cost of purchase= 3.7*43,000= $159,100
If the company buys the units, it will save $135,350.
A customer of RoughEdge Sharpeners alleges that RoughEdge's new razor sharpener had a defect that resulted in serious injury to the customer. RoughEdge believes the customer has a possible chance of winning the case, and that if the customer wins the case, there is a range of losses of between $1,000,000 and $3,000,000 in which any number is equally likely to occur. Under U.S. GAAP, RoughEdge should accrue a liability in the amount of:
Answer:
$5,000,000,000,000,000,000.000
Desmond is 25 years old and he participates in his employer’s 401(k) plan. During the year, he contributed $3,000 to his 401(k) account. What is Desmond’s 2016 saver’s credit in each of the following alternative scenarios?
a) Desmond is not married and has no dependents. His AGI after deducting his 401(k) contribution is $34,000.
b) Desmond is not married and has no dependents. His AGI after deducting his 401(k) contribution is $17,500.
c) Desmond files as a head of household and has an AGI of $44,000.
d) Desmond and his wife file jointly and report an AGI of $30,000 for the year.
Answer: See explanation
Explanation:
The savers credit is mostly used to motivate taxpayers so that they'll contribute to their retirement plans.
a. Desmond is not married and has no dependents. His AGI after deducting his 401(k) contribution is $34,000.
In this case, there'll be no credit that's available for Desmond as he'll be all under files AGI and his maximum savers credit will be $0.
b) Desmond is not married and has no dependents. His AGI after deducting his 401(k) contribution is $17,500.
Since he's single and doesn't have dependents, and his AGI is $17500, therefore, the saver's credit of Desmond will be 50% of $2000 which will be:
= 50% × $2000.
= 0.5 × $2000
= $1000
c) Desmond files as a head of household and has an AGI of $44,000.
Here, his percentage of saver's credit will be 10% of $2000 because he AGI of $44,000 which falls between $30001 - $46125. Therefore savers income will be:
= 10% × $2000
= 0.1 × $2000
= $200
d) Desmond and his wife file jointly and report an AGI of $30,000 for the year.
Here, the saver's percentage used will be 50% of $2000 and this will be:
= 50% × $2000
= 0.5 × $2000
= $1000
Question 9 Dividends on CCN corporation are expected to grow at a 9% per year. Assume that the discount rate on CCN is 12% and that the expected dividend per share in one year is $0.50. CCN has just paid a dividend, so the next dividend is the $0.50 to be paid one year from now. Assume that CCN's return on equity (ROE) is 12%. What fraction of earnings must CCN be plowing back into the company
Answer: 75%
Explanation:
The fraction of earnings that CCN must be plowing back into the company goes thus:
Growth rate = 9%
Discount rate = 12%
Expected dividend per year = $0.50
Return on equity = 12%
It should be noted that:
Growth rate = plowback ratio × Return on equity
9% = plowback ratio × 12%
Therefore, plowback ratio = 9% / 12%
Plowback ratio = 75%
Therefore, fraction of earnings must CCN be plowing back into the company is 75%.
When presenting evidence in a Small Claims Court, it is advisable to avoid using pictures or graphics.
T OR F
The statement "When presenting evidence in a Small Claims Court, it is advisable to avoid using pictures or graphics" is true.
What is graphics?Graphics are visual pictures or designs on a material, such as a wall, canvas, screen, paper, or stone, that inform, explain, or entertain.
In modern use, it refers to a graphical representation of data, such as in design and manufacturing, typesetting and the visual arts, and instructional and recreational software. Computer graphics refers to images created by a computer.
Small claims courts are a simple, informal, and low-cost method for settling matters with claims of $7,000 or less.
It is correct that "when presenting evidence in a Small Claims Court, it is best to avoid introducing photographs or graphics." Therefore, it can be concluded that the above statement is true.
Learn more about the graphics here:
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Western Electric has 35,000 shares of common stock outstanding at a price per share of $85 and a rate of return of 12.70 percent. The firm has 7,600 shares of 8.40 percent preferred stock outstanding at a price of $98.00 per share. The preferred stock has a par value of $100. The outstanding debt has a total face value of $422,000 and currently sells for 114 percent of face. The yield to maturity on the debt is 8.26 percent. What is the firm's weighted average cost of capital if the tax rate is 40 percent
Answer:
10.83 %
Explanation:
Weighted average cost of capital = Cost of Equity x Weight of Equity + Cost of Debt x Weight of Debt + Cost of Preferred Stock x Weight of Preferred Stock
therefore,
Weighted average cost of capital = 12.70 % x 70.82 % + 4.956 % x 17.73 % + 8.40 % x 11.45 %
= 10.83 %
Remember to use after tax cost of debt.
Crane Company estimates its sales at 80000 units in the first quarter and that sales will increase by 8000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Cash collections for the third quarter are budgeted at
Answer:
Total cash collection Third Quarter= $2,364,000
Explanation:
Giving the following information:
40% of the sales are for cash.
70% of the credit customers pay within the quarter.
The remainder is received in the quarter following the sale.
Sales:
Q2= 88,000*25= 2,200,000
Q3= 96,000*25= 2,400,000
Selling price per unit= $25
Cash collection Third Quarter:
Sales in cash= 2,400,000*0.4= 960,000
Sales on account third quarter= (2,400,000*0.6)*0.7= 1,008,000
Sales on account second quarter= (2,200,000*0.6)*0.3= 396,000
Total cash collection Third Quarter= $2,364,000