BUSINESS COLLEGE

Fox Co. sold used equipment for a cash amount equaling its carrying amount for both book and tax purposes. Later that year, Fox replaced the equipment by paying cash and signing a note payable for new equipment. The cash paid for the new equipment exceeded the cash received for the old equipment. How should these equipment transactions be reported in Fox's statement of cash flows? Group of answer choices

Answers

Answer 1
Answer:

Answer:

The correct answer is letter "B": Cash inflow equal to the cash received and a cash outflow equal to the cash paid.

Explanation:

The cash inflow equals to the amount of money received for the old equipment sold and cash outflow equivalent to the money paid for the brand new equipment. The note payable is not a cash outflow, and the cash outflow received should not be decreased.

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Katlin Markets is debating between a levered and an unlevered capital structure. The all-equity capital structure would consist of 75,000 shares of stock. The debt and equity option would consist of 40,000 shares of stock plus $320,000 of debt with an interest rate of 6.25 percent. What is the break-even level of earnings before interest and taxes between these two options? Ignore taxes.a.$46,333.33b.$44,140.71c.$42,208.15d.$49,666.67e.$42,857.14
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Harris Company had checks outstanding totaling $15,400 on its May bank reconciliation. In June, Harris Company issued checks totaling $64,900. The June bank statement shows that $37,600 in checks cleared the bank in June. A check from one of Harris Company's customers in the amount of $300 was also returned marked "NSF." The amount of outstanding checks on Harris Company's June bank reconciliation should be ____.

Answers

Answer:

$42,700

Explanation:

The presentation of bank reconciliation is shown below:-

Check outstanding in June beginning     $15,400

Add: Check issued                                     $64,900

Total check to be cleared                          $80,300

Less: Check cleared                                     $37,600

The Outstanding amount of checks issued $42,700

Both nondeductible contributions to a traditional IRA and contributions to a Roth IRA are similar in the sense that neither provides a tax deduction at the date of contribution. Which of the two types would be most advantageous to taxpayers and why

Answers

Answer:

The query definition is mentioned in the clarification section following.

Explanation:

  • Throughout the particular instance of Roth IRA, more stability and fewer constraints along with existing lower federal premiums allow Roth IRA a safer long-term taxpayer option. It is recommended that the taxpayer should do so. Employers can opt for something like a non-qualified retirement package if the company wishes to attract prospective workers with extra perks.
  • It will include insurance as well as tax detention incentives along with extra payments. Non-qualified programs are more versatile which are used to accomplish specialized targets.

The profit margin ratio is the only ratio that makes up ROE that can be negative (except in relatively rare cases). Describe how the interpretation of the Asset Turnover Ratio and the Financial Leverage Ratio change based on whether the Profit Margin Ratio is positive or negative.

Answers

Except under very exceptional circumstances, the only ratio that makes up ROE that can be negative is the profit margin ratio. As a result, the asset turnover ratio continues to be positive and shows the amount of sales produced for each dollar of assets owned by the organization.

What is profit margin  ?

One of the often used profitability statistics to determine how profitable a business or line of business is is profit margin. It displays the proportion of sales that have generated profits. Simply put, the percentage value represents the amount of profit the company made on each dollar of sales. For instance, if a company states that it had a 35% profit margin during the most recent quarter.

Different profit margins come in different forms. However, in common usage, it typically refers to net profit margin, which is a company's bottom line after all other costs, such as taxes and one-time charges, have been deducted from revenue.

To know more about profit

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Explanation:

The profit margin ratio is the only ratio that makes up ROE that can be negative (except in relatively rare cases). ... Therefore, Asset turnover ratio still represents the amount of sales that is generated for each dollar of assets the company owns and always is positive.

Lake Corp., a newly organized company, reported pretax financial income of $100,000 for 20X0. Among the items reported in Lake's 20X0 income statement are the following: Premium on officer's life insurance with Lake as owner and beneficiary of $15,000

Interest received on municipal bonds of $ 20,000

The enacted tax rate for 20X0 is 30% and 25% thereafter. In its December 31, 20X0, balance sheet, Lake should report a deferred income tax liability of:

a.$4,500

b.$0

c.$3,750

d.$28,500

Answers

Answer:

b.$0

Explanation:

As we know that

When there is a temporary discrepancy between financial income and taxable income a deferred tax benefit or liability occurs. Temporary difference means an benefit or cost with respect to treatment that has just a timing gap.

Moreover, the Premium on officer's life insurance is tax deductible i.e $15,000  as it is paid by the company due to which difference arise between the financial and taxable income.

And,  

Interest received on municipal bonds $20,000 are mostly exempt from federal income tax.

Therefore, it shows no such difference as it indicates the permanent difference

Writing a check on an account with insufficient funds is allowed under certain conditions.

Answers

Answer:

True

Explanation: If you have overdraft protection your account

When small describes how his customers choose to purchase his clothes (by evaluating that his brand is environmentally conscientious, whereas most other brands are not), which condition of exchange is being met?

Answers

The condition of exchange that is being met when Small describes how his customers choose to purchase his clothes (by evaluating that his brand is environmentally conscientious, whereas most other brands are not) is that each party believes it is appropriate or desirable to deal with the other party.
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