Answer:
Option (b) is correct.
Explanation:
Given that,
Net sales = $4,885,340
Cost of goods sold = (2,942,353 )
Selling expenses = (884,685 )
Operating income = $1,058,302
Interest expense = $(55,240 )
Earnings before income taxes = $1,003,062
Income tax expense = $(401,225 )
Net income = $ 601,837
EBIT = Net income + Income tax expense + Interest expense
= $1,003,062 + $401,225 + $55,240
= $1,058,302
Times interest earned ratio in 2017:
= EBIT ÷ Interest expense
= $1,058,302 ÷ $55,240
= 19.1582 or 19.16
Answer:
disposable income minus consumption expenditure
Explanation:
Answer:
X demand would rise by 8% ; Y demand would fall by 4%
Explanation:
Price Elasticity of Demand is the responsiveness in demand quantity, due to change in good's price
P.Ed = % change in demand / % change in own price
Cross Price Elasticity is the responsiveness in a good's demand quantity, due to change in other good's price
C.Ed = % change in demand (Y) / % change in other good's price (X)
Given {Good X Elasticities} : P.Ed = (-) 4 ; C.Ed = 2
Price of X decrease = 2%
P.Ed = 4 = % change in demand / 2
% change in demand of X = 2 x 4 = 8%
P.Ed absolute value ignoring negative has been taken due to law of demand price - demand inverse relationship already depicting it. So, 2% fall in price of X increases it's quantity demanded by 8%
C.Ed = 2 = % change in Y demand / 2
% change in Y demand = 2 x 2 = 4%
Cross Price Elasticity of demand is positive in case of substitute goods. These goods can be interchange-ably used to satisfy a particular want. Substitutes price & demand are directly related;- as price fall of a good makes it relatively cheap, increases its demand, decreases other good's demand. So, 2% decrease in good X price decreases good Y demand by 4%
Operating assets $164,101 $153,211
Operating liabilities 120,785 114,836
Net cash flow from operations 46,709 39,540
Net operating profit after tax (NOPAT) 33,371 31,742
Discount factor 6.0% 6.0%
What are the company's free cash flows to the firm (FCFF) for 2017?
A. $28,430
B. $24,638
C. $28,907
D. $25,797
E. None of the above
Answer:
Option (A) is correct.
Explanation:
Net Operating assets in 2017:
= Operating assets - Operating liabilities
= $164,101 - $120,785
= $43,316
Net Operating assets in 2016:
= Operating assets - Operating liabilities
= $153,211 - $114,836
= $38,375
Increase in net operating assets:
= $43,316 - $38,375
= $4,941
Company's free cash flows to the firm (FCFF) for 2017:
= Net operating profit after tax 2017 - Increase in net operating assets
= $33,371 - $4,941
= $28,430
Answer:
The quarter has 3 months so all 15 weeks shall have following taxes:
Employee Wages Exempt under FUTA or SUTA
Employee 1
Wages = 15 week x 900 = 13.500
Exempt under FUTA or SUTA = 13,500 - 7,000 = 6.500
Employee 2
Wages = 15 week x 1200 = 18.000
Exempt under FUTA or SUTA = 18.000 - 7,000= 11000
From the above table.
The JM pays employee 1: 900 and employee 2: 1,200. For 15 weeks they were paid,
Employee I is paid, 900 x 15 weeks
= 13,500
Employee 2 is paid, 1200 x 15 weeks
= I 8,000
For employee 1,
= 13,500 - 7,000
Here, SUTA tax is 5.4% on the first 7,000 the employer pays an employee = 6500
For employee 2,
=18,000 - 7000
Here, the SUTA tax is 5.4% on the first 7000 the employer pays an employee =11000
The taxable wages are obtained by deducting.
= (13,500 +18000) - (6,500 +11,000)
= 31500 - 17500
= 14000
The SUTA and FUTA taxes that JM pays at the end of quarter 1 and 2 is, SUTA,
0.057 x 14,000 = $798
FUTA.
0.008 x 14000
= $112
Hence. The SUTA and FUTA taxes paid are $798 and $112 respectively.
Jean Michaud will pay a state unemployment tax of $1,556.10 and a federal unemployment tax of $163.80 per quarter for his two employees.
The question pertains to calculating the unemployment taxes that Jean Michaud will have to pay for his two employees at a state rate of 5.7% and federal rate of 0.6%. Firstly, we calculate the total wages paid to both employees per quarter. One quarter comprises 13 weeks, therefore the total wages paid per quarter would be ($900+$1200) * 13 = $27,300.
Next, we calculate the unemployment taxes. The state unemployment tax would be $27,300 * 5.7% = $1,556.10 and the federal unemployment tax would be $27,300 * 0.6% = $163.80.
Therefore, the state and federal unemployment taxes Jean will pay at the end of quarters 1 and 2 are respectively $1,556.10 and $163.80. Note, these calculations assume that these are the only two employees and their wages are constant throughout these quarters.
#SPJ3
Revenue Expenses
(A) $18,600,000 $18,750,000
(B) $4,650,000 $ 4,687,500
(C) $4,650,000 $ 5,250,000
(D) $4,687,500 $ 4,687,500
Answer:
(C) $4,650,000 $ 5,250,000
Explanation:
total contract price is $ 18,600,000
season construction using percentage of completion method.
Amount of revenue & construction expense for the year ended december 31, 2020 will be
25% of $ 18,600,000 revenue = $ 4,650,000
25% of $ 18,750,000 total cost = $5,250,000
Answer:
b. Income to the investor in the period of declaration.
Explanation:
The dividend received will be a income for investors because the dividend received is the return on securities. It will not be deducted from the equity balance neither it is an expense for investors. A direct increase in retained earning to settles the previous losses is the fair value adjustment.