Answer:
Oliver Company
Budgeted Income Statement For the Coming Year
Sales ($10.80 * 160,000) $1,728,000
Cost of goods sold ($6.30 * 160,000) ($1,008,000)
Gross margin(Sales - COGS) $720,000
Less: Variable selling and administrative expenses ($176,000)
($1.10 * 160,000)
Less: Fixed selling and administrative expenses ($423,000)
Operating income $121,000
Less: Income taxes (35% * 121,000) ($42,350)
Net income $78,650
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold:
Sales $210,000
Beginning merchandise inventory $14,000
Purchases $140,000
Ending merchandise inventory $7,000
Fixed selling expense $?
Fixed administrative expense $12,000
Variable selling expense $ 15, 000
Variable administrative expense $?
Contribution marain $60,000
Net operating income 18,000
Required:
1. Prepare a contribution format income statement.
Todrick Company
Contribution Format Income Statement
Sales $300,000
Variable expenses:
Cost of goods sold $213,000
Selling expense 15,000
Administrative expense 228,000
Contribution margin 60,000
Fixed expenses
Selling expense $12,000
Administrative expense $30,000
42,000
Net operating income $60,000
2. Prepare a traditional format income statement.
3. Calculate the selling price per unit.
4. Calculate the variable cost per unit.
5. Calculate the contribution margin per unit.
6. Which income statement format (traditional format or contribution format) would be more useful to managers in estimating how net operating income will change in responses to changes in unit sales?
Prepare a contribution format income statement.
Answer:
1. Todrick Company
Contribution format income statement
Sales $210,000
Less Variable Expenses
Cost of goods sold $161,000
Selling Expenses $15,000
Administrative Expenses $12,000
$188,000
Contribution margin $22,000
Less: Fixed Expenses
Selling Expenses $68,000
Administrative Expenses $12,000
Total Fixed Expenses $80,000
Net Operating Income (Loss) $62,000
Working
Cost of goods sold=Beginning inventory + Purchases − Ending inventory
=$14,000 + $140,000 − $7,000
=$161,000
Variable administrative = Sales - Cost of goods sold - Variable expense - Contribution margin
= $210,000 - $161,000 - $15,000 - $60,000
= -$26,000
Fixed selling expenses = Contribution margin - Administrative margin - Net Income
= $60,000 - (-$26,000) - $18,000
= $68,000
2. Todrick Company
Traditional format income statement.
Sales $210,000
Less: Cost of goods sold $161,000
Gross Profit $49,000
Selling and administrative expenses
Variable selling expenses $15,000
Fixed selling expenses $68,000
Variable administrative expenses $12,000
Fixed administrative expenses $12,000 $107,000
Net Operating Income (Loss) $58,000
3. Selling price per unit = Sales / No of units
= $210,000 / 1000 unit
= $210
4. Variable cost per unit = Variable expenses / No of units
= $188,000 / 1000 unit
= $188
5. Contribution margin per unit = Contribution margin / No of units
= $22,000 / 1000 unit
= $22
6. In the contribution income statement, the income is calculated in a detailed manner. The expense is evaluated at each step. It will be useful for the managers to estimate the changes in net operating income.
What is true regarding static budgets? Select one: a. It is the budgeted amount used to calculate standard costs. b. It is the budgeted amount used to calculate the actual costs. c. It is also called moving or nonstationary budgets. d. All of the above
Answer:
b. It is the budgeted amount used to calculate the actual costs.
Explanation:
Static budget is the budget which remains the same even if there is some changes made but the flexible budget do not remain the same.
Moreover, the static budget is the main budget that used to prepare the standard cost by considering the budgeted activity level
Therefore it is the budget in which the budgeted amount should be considered in order to determine the actual cost that helps to make the flexible budget
Divine Apparel has 2,300 shares of common stock outstanding. On October 1, the company declares a $0.25 per share dividend to stockholders of record on October 15. The dividend is paid on October 31.
Record all transactions on the appropriate dates for cash dividends. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. Record the declaration of cash dividends.
2. Record the entry on date of record.
3. Record the payment of cash dividends.
Answer:
1. Record the declaration of cash dividends.
October 1, cash dividends are declared.
Dr Retained earnings 575
Cr Dividends payable 575
A liability is formed on the date of declaration.
2. Record the entry on date of record.
No journal entry is required
3. Record the payment of cash dividends.
October 31, dividends are paid.
Dr Dividends payable 575
Cr Cash 575
Under optimal monetary policy, the central bank adjusts its policy based on anticipated rather than current inflation and output gaps because:
Answer: Monetary policy has a long outside lag.
Explanation:
The options are that:
a. It wants to avoid time inconsistency problems.
b. It takes time for the Central Bank to implement its policy decisions.
c. Monetary policy has a long outside lag.
d. Forecast errors are often rather large.
Monetary policy is the use of interest rate and the supply of money to control the economy. Optimal monetary policy helps to maximizes the welfare of individuals and firms given the frictions that occur in the economic environment.
Under optimal monetary policy, the central bank adjusts its policy based on anticipated rather than current inflation and output gaps because monetary policy has such long outside lags. It has a long outside lag because they mainly affect the investment plans of business and a change in the rate of interest might not really have a full effect on the spending on investment for several years.
What are cash flow financing activities
Answer: Cash flow from financing activities (CFF) is a section of a company's cash flow statement, which shows the net flows of cash that are used to fund the company. Financing activities include transactions involving debt, equity, and dividends.
Explanation:
Jay received the following fair market value amounts during the current year: Interest on Montgomery County bonds (used to build a bridge) $100 Interest on U.S. Treasury notes $200 Gain on sale of Montgomery County bonds $300 Common stock dividend in IBM Corporation common stock (no cash option) $400 What amount of taxable income should Jay report from these amounts
Answer:
$300
Explanation:
Given that :
Jay received the following fair market value amounts during the current year:
Interest on Montgomery County bonds
(used to build a bridge) $100
Interest on U.S. Treasury notes $200
Gain on sale of Montgomery County bonds $300
Common stock dividend in IBM Corporation
- common stock (no cash option) $400
From the above amounts that Jay received during the current year;
The following are free from an obligation and liability imposed as a result of tax.
1. Interest on Montgomery County bonds (used to build a bridge)
2. Interest on U.S. Treasury notes
3. Common stock dividend in IBM Corporation common stock (no cash option)
So; we can say they are not taxable
BUT only Gain on sale of Montgomery County bonds which is $300 only taxable
Thus, The amount of taxable income Jay should report from the above amounts is $300
_____ innovation involves making slight modifications to existing products in an effort to distinguish a product from the competition.
Answer:Continuous
Explanation:
Expenses payable always treated as current/ fixed assets. Is it true or false?
Answer:
False
Explanation:
This is an example of a current liability and not assets.
To explain this , assets are anything owned as a result of past activities that result into inflow of economic benefits while liabilities are obligation that arose as a result of pat activities that result into outflow of economic benefit.
Current assets or liabilities are expected to be settles within twelve months / a normal operating cycle of the business activities while the non - current are for a longer period.
Expenses payable are liabilities that are current in nature as it is expected to be settled within a business year.
A company operates in a perfectly competitive market, selling each unit of output for a price of $20 and paying the market wage of $360 per day for each worker it hires. In the following table, complete the column for the marginal revenue product of labor (MRP) at each quantity of workers.
Labor Output Marginal Product of Labor Marginal Revenue Product of Labor
(Number of workers) (Units of output) (Units of output) (Dollars)
0 0 - -
1 20 20
2 39 19
3 57 18
4 72 15
5 84 12
Answer: The answer is given below
Explanation:
The marginal revenue product of labor (MRPL) is an additional amount of revenue that a firm will make when it hires one additional employee. The formula and r calculating
MRPL = marginal product of labour x marginal revenue.
It should be noted that P = MC = MR. Therefore marginal revenue will be $20.
Therefore when:
MPPL = 0
MRPL = 0 × 20 = 0
MPPL = 20
MRPL = 20 ×20 = 400
MPPL = 19
MRPL = 19 × 20 = 380
MPPL = 18
MRPL = 18 × 20 = 360
MPPL = 15
MRPL = 15 × 20 = 300
MPPL = 12
MRPL = 12 × 20 = 240
Check the attached file for the table.
The completion of the column for the marginal revenue product of labor (MRP) is as follows:
Labor (Number of Output Marginal Product of Value of the
workers) (Units of output) Labor (Units of output) Marginal Product
of Labor (Dollars)
1 20 20 $400 (20 x $20)
2 39 19 $380 (19 x $20)
3 57 18 $360 (18 x $20)
4 72 15 $300 (15 x $20)
5 84 12 $240 (12 x $20)
The marginal revenue product of labor (MRPL) shows the additional amount of revenue the firm generates when it adds one additional employee to its labor force. It is the product from the multiplication of the marginal product of labor by the selling price of output.
Thus, according to the law of Marginal Revenue Product of Labor, the company will demand more labor until its MRPL equals the wage rate, that is at $360.
Learn more: https://brainly.com/question/17009411
There are two techniques of egg production: free range (where hens roam around the farm) or factory (where hens are fed and watered in wire cages). The free range technique has a much more elastic supply curve than the factory technique. When the demand for eggs falls:________.
a. egg production falls by a smaller percentage in the factory technique than in the free range technique.
b. egg production falls by a larger percentage in the factory technique than in the free range technique.
c. the production using both techniques falls by the same percentage.
d. the factory egg producers supply curve shifts inward.
e. the free range egg producers supply curve shifts inward.
Answer:
a. egg production falls by a smaller percentage in the factory technique than in the free range technique.
Explanation:
Elasticity of supply is defined as the degree of responsiveness of supply to changes in price. Highly elastic supply responds more to change in price than low elastic supply.
In the given scenario where eggs are produced using factory and free range techniques, as demand falls price consumers are willing to pay also falls.
Since factory technique has a lower elasticity of supply, the fall in supply as a result of fall in price will be small.
However the fall in supply of free range will be higher because of its higher elasticity
EVA/MVA The financial statements reflect historical data, but managers' performance must be evaluated on the basis of values. To provide this information, financial analysts have developed two measures: Market Value Added (MVA) and Economic Value Added (EVA). Market Value Added represents the difference between the money stockholders have invested in the firm versus the cash they could receive if the firm were sold. The equation for MVA is:
Answer:
MVA = (Shares outstanding * Stock price) - Total common equity
Explanation:
Market value added is the excess of equity over its book value. It is the difference between money invested by stockholders and the cash they will receive if the company is sold. The higher MVA of a company means performance of the company management is good and is in the favor of stockholders.
On January 1, the Matthews Band pays $65,800 for sound equipment. The band estimates it will use this equipment for four years and perform 200 concerts. It estimates that after four years it can sell the equipment for $2,000. During the first year, the band performs 45 concerts. Compute the first-year depreciation using the units-of-production method. g
Answer:
Annual depreciation= $14,355
Explanation:
Giving the following information:
Original cost= $65,800
Number of units= 200
Salvage value= $2,000
During the first year, the band performs 45 concerts.
To calculate the annual depreciation under the units-of- production method, we need to use the following formula:
Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units operated
Annual depreciation= [(65,800 - 2,000)/200]*45
Annual depreciation= $14,355
Trails End Vacations has a $2,200 account receivable from the Sun City Kiwanis. On March 11, the Kiwanis makes a partial payment of $1,050 to Trails End. The journal entry made on March 11 by Trails End to record this transaction includes:
Answer:
Cash $1,050 (debit)
Accounts Receivable :Sun City Kiwanis $1,050 (credit)
Explanation:
When Kiwanis makes a partial payment to settle their account, in Trails Ends records, we recognize (1) an the increase in the assets of cash and (2) recognize a decrease in the assets of accounts receivable.
On January 2, 2021 Pod Company purchased 30% of the outstanding common stock of Jobs, Inc. and used the equity method to account for the investment. During 2021, Jobs reported net loss of $160,000 and distributed dividends of $100,000. The ending balance in the Investment in Jobs Company account at December 31, 2021 was $640,000 after applying the equity method. What was the purchase price Pod Company paid for its investment in Jobs, Inc.? "g"
Answer:
The purchase price is 7 million 435 thousnad 638.92 dollars
Explanation:
Galvatron Metals has a bond outstanding with a coupon rate of 6.3 percent and semiannual payments. The bond currently sells for $1,919 and matures in 17 years. The par value is $2,000 and the company's tax rate is 39 percent. What is the company's aftertax cost of debt?
Answer:
4.09%
Explanation:
For computing the after cost of debt we have to applied the RATE formula i.e to be shown in the attachment below:
Given that,
Present value = $1,919
Future value or Face value = $2,000
PMT = 2,000 × 6.3% ÷ 2 = $63
NPER = 17 years × 2 = 34 years
The formula is shown below:
= Rate(NPER,PMT,-PV,FV,type)
The present value come in negative
So, after applying the above formula,
1. The pretax cost of debt is 3.35% × 2 = 6.70%
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 6.70% × ( 1 - 0.39)
= 4.09%
In 2020, a self-employed person earning $100,000, who also has $100,000 of investment income, wishes to open a Keogh Plan. Their maximum permitted contribution is:
Answer:
$20,000
Explanation:
Calculation for the maximum permitted contribution of Keogh Plan.
Based on the information given the maximum permitted contribution for Keogh Plan will be based only on their personal service income and wont be based on their investment income.
Based on this let find the maximum permitted contribution for Keogh Plan
$100,000 *20% Effective contribution rate = $20,000
Therefore their maximum permitted contribution is: $20,000
New Gadgets, Inc., currently pays no dividend but is expected to pay its first annual dividend of $4.90 per share exactly 7 years from today. After that, the dividends are expected to grow at 3.5 percent forever. If the required return is 11.3 percent, what is the price of the stock today
Answer:
Price of stock today =$33.045
Explanation:
The price of a stock using the dividend valuation model is the present value of the the future dividend expected from the stock discounted at the required rate of return.
This model would be applied as follows
PV of the first dividend =
Dividend in year 7 × (1+r)^(-n)
r- 11.3%, n- 7
PV = 4.90× 1.113^(-7) = 2.315
Dividend in year 8 and beyond
PV (in year 7 terms) =4.90× 1.035/(0.113- 0.035)= 65.019
PV of dividend in year 0
=PV in year 7 × 1.113^(-7)
=65.019 × 1.113^(-7) = 30.73
Price of stock today = 2.315+ 30.73 = 33.045
Price of stock today =$33.045
On December 20, the company paid cash for equipment, $272,300, subject to a 2% cash discount, and freight on equipment of $11,410. Prepare entries on the books of Concord Company for these transactions. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places e.g. 58,971. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Answer:
Dr equipment $ 278,264.00
Cr cash $278,264.00
Explanation:
The amount of cash paid for equipment=$272,300*(1-2%)=$266,854.00
The cash paid for freight on equipment is $11,410
The cash paid on freight would also be debited to the equipment's account since the cost of an asset includes the amount spent bringing it to its present location and condition .
Total cost of equipment =$266,854.00+$11,410.00
Juggernaut Satellite Corporation earned $18.5 million for the fiscal year ending yesterday. The firm also paid out 40 percent of its earnings as dividends yesterday. The firm will continue to pay out 40 percent of its earnings as annual, end-of-year dividends. The remaining 60 percent of earnings is retained by the company for use in projects. The company has 2 million shares of common stock outstanding. The current stock price is $80. The historical return on equity (ROE) of 14 percent is expected to continue in the future.
What is the required rate of return on the stock?
Answer:
13.41%
Explanation:
Last Year: Earnings = $18,500,000
Shares Outstanding = 2,000,000
Earnings per share = Earnings / Shares Outstanding
= $18,500,000 / 2,000,000
= $9.25
Dividend per share, D0 = Earnings per share * Payout Ratio
Dividend per share, D0 = $9.25 * 40%
Dividend per share, D0 = $3.70
Retention Ratio = 60%
Return on Equity = 14%
Growth Rate, g = Return on Equity * Retention ratio
Growth Rate, g = 14% * 0.60
Growth Rate, g = 8.40%
Current Price, P0 = $80.00
Next Year: Dividend per share, D1 = D0 * (1 + g)
Dividend per share, D1 = $3.70 * (1 + 8.40%)
Dividend per share, D1 = $3.70 * 1.084
Dividend per share, D1 = $4.0108
Required Rate of Return = D1 / P0 + g
= $4.0108 / $80.00 + 0.0840
= 0.0501 + 0.0840
= 0.1341
= 13.41%
The information necessary for preparing the 2018 year-end adjusting entries for Winter Storage appears below. Winter's fiscal year-end is December 31.
a. Depreciation on the equipment for the year is $7,000.
b. Salaries earned (but not paid) from December 16 through December 31, 2018, are $3,400.
c. On March 1, 2018, Winter lends an employee $12,000 and a note is signed requiring principal and interest at 6% to be paid on February 28, 2019.
d. On April 1, 2018, Winter pays an insurance company $15,000 for a one-year fire insurance policy. The entire $15,000 is debited to prepaid insurance at the time of the purchase.
e. $1,500 of supplies are used in 2018.
f. A customer pays Winter $4,200 on October 31, 2018, for six months of storage to begin November 1, 2018. Winter credits deferred revenue at the time of cash receipt.
g . On December 1, 2018, $4,000 advertising is paid to a local newspaper. The payment represents advertising for December 2018 through March 2019, at $1,000 per month. Prepaid advertising is debited at the time of the payment.
Required: Record the necessary adjusting entries at December 31, 2018.
Answer:
Adjusting entries are entries that indicate the events of the company that have occurred but not yet recorded by the company.
a. DATE DESCRIPTION DEBIT CREDIT
Dec 31 Depreciation Expenses $7,000
2018 Accumulated Expenses $7,000
(Record depreciation on equipment )
b. DATE DESCRIPTION DEBIT CREDIT
Dec 31 Salary expenses $3,400
2018 Salary payable $3,400
(Record salary incurred but not paid)
c. DATE DESCRIPTION DEBIT CREDIT
Dec 31 Interest receivables $660
2018 (12,000 * 6% * 11/12)
Interest revenue $660
(Record of interest earned)
d. DATE DESCRIPTION DEBIT CREDIT
Dec 31 Insurance Expenses $11,250
2018 (15,000 * 9/12)
Prepaid Insurance $11,250
(Record payment of insurance expenses)
e. DATE DESCRIPTION DEBIT CREDIT
Dec 31. Supplies Expenses $1,500
2018 Supplies $1,500
(Record of supplies)
f. DATE DESCRIPTION DEBIT CREDIT
Dec 31, Deferred revenue $1,400
2018 (4,200 * 2 month / 6 month)
Service revenue $1,400
(Record advance payment for services provided)
g. DATE DESCRIPTION DEBIT CREDIT
Dec 31, Advertisement Expenses $1,000
2018 Prepaid Advertisement $1,000
(Record payment for advertisement)
Company X uses the accounts receivable ageing approach to estimate bad debt expense. Please calculate the December 31, 2018 allowance for doubtful accounts using the following information: The estimated loss rate for uncollectibility for each category is as follows: Up to 30 days due 3%, Up to 31 to 60 days due 6% and Over 60 days due 10%.
Before the December 31, 2018 calculations were made the allowance for doubtful accounts had a $500 Debit balance in it. The balances in the December 31, 2018 accounts receivable ageing schedule are as follows:
Up to 30 days due $100,000
Up to 31 to 60 days due $40,000
Over 60 days due $20,000
Answer:
Company X
Calculation of the December 31, 2018 Allowance for Doubtful Accounts:
Accounts Receivable balances Allowance for Doubtful Accounts
Up to 30 days due $100,000 $3,000 (100,000 x 3%)
Up to 31 to 60 days due $40,000 $2,400 (40,000 x 6%)
Over 60 days due $20,000 $2,000 (20,000 x 10%)
Total Allowance for Doubtful Accounts $7,400
Explanation:
The 2018 Uncollectible Expenses will be $7,900 ($7,400 + 500).
Using the ageing method, each class of account receivable balance is applied the estimated rate of uncollectible. Then, these are summed to give the amount estimated as the Allowance for Doubtful Accounts for the year. The resulting figure is compared with the balance in the Allowance for Doubtful Accounts to determine the amount of the Uncollectible Expenses which is taken to the income summary for the period.
Which of the following accounts will only be found in the chart of accounts of a merchandising company? a. Accounts Payable b. Accounts Receivable c. Inventory d. Sales
Answer:
c. Inventory
Explanation:
A merchandising company is one that specialises in buying and reselling goods. Profit is made by selling goods at higher prices than they were bought.
Merchandising companies can be wholesale or retail businesses.
Because of the nature of their business merchandising companies usually make use of storage facilities to stock goods. This nesecitates the use of an inventory account to monitor inflow and outflow of goods.
Therefore inventory account is used only by merchandising companies
Answer:
The answer is C. Inventory
Explanation:
Meerchandising company is a company that buys goods(inventories) and resells them later at a price higher than the purchase price.
We have two types of merchandising companies:
1. Retail
2. Wholesale.
Since they buy and sells inventories (goods), only inventory accounts can be found in the chart of accounts among those options.
The average American’s real income today is about four times what it was in _________.
Average lifetime lengths have increased by ______,
the number of hours worked per week has decreased by _________ ,
and homes have _________ doubled in size.
almost
1940
21%
8%
12%
1935
1960
more than
17%
Answer:
The average American’s real income today is about four times what it was in 1960. Average lifetime lengths have increased by 12%, the number of hours worked per week has decreased by 17% , and homes have more than doubled in size.
Explanation;
Economic data shows that Americans make on average, about 4 times what they were making in real income in 1960 due to exponential economic growth.
At the same time, Americans are also living a longer life by 12% on average than in 1960 when the life expectancy was around 70 years. Today it is around 78 years.
Americans are also working fewer hours than their 1960 counterparts because where in 1960 they worked for an average of 50 hours a week, recently that number hovers around 40 hours a week.
Houses built are also larger than they were in the '60s as income has increased and preferences have changed.
On November 1, 2019, a firm accepted a 5-month, 10 percent note for $1,080 from a customer with an overdue balance. The accrued interest recorded for this note for the year ended December 31, 2019, is
Answer: $18
Explanation:
From the question, we are informed that On November 1, 2019, a firm accepted a 5-month, 10 percent note for $1,080 from a customer with an overdue balance.
The accrued interest recorded for this note for the year ended December 31, 2019 goes thus:
The value of notes receivable is $1080, then the interest for 5 months will be:
= ($1080 × 10% ×5)/100 × 12
= $54000/1200
= $45
We are further told that the interest accrued from November 1, 2019 to December 31, 2019. This means that it was for 2 months. The accrued interest will now be:
= $45 × 2/5
= $90/5
= $18
Angus Company agreed to sell goods for Longhorn Company on consignment, but wasn't willing to take ownership of the goods in case they were difficult to sell. Which of the following statements is true?
A. Angus owns the inventory and should report It on its balance snoot.
B. Long hum owns the inventory but should not report it on its balance sheet because Angus actually holds the inventory
C. Angus owns the inventory since possession is nineteenths of the law. but should not report it on its balance sheet.
D. Longhorn owns the inventory and should report it on its balance sheet.
Answer: D. Longhorn owns the inventory and should report it on its balance sheet.
Explanation:
Goods to be sold on consignment for a company means a company is selling goods for another company and will be paid for their services.
In that case, the company being sold for will retain the ownership of the goods because the company that is selling it for them is simply providing a service.
Angus in this scenario are simply holding the goods to sell it and so do not own the goods. Longhorn should therefore record it in their own books as inventory.
Under Variable costing, fixed expenses: Select one: a. Are subtracted from sales to arrive at the contribution margin b. Are subtracted from sales to arrive at the gross profit c. Are expensed in the current period d. A and C
Answer:
The answer is C. Are expensed in the current period
Explanation:
Under variable costing, fixed expenses is treated as a period cost and is expensed in the current period's income statement.
Option A is incorrect because variable cost and not fixed cost cost are subtracted from sales to arrive at contribution margin
Option B is also incorrect because cost of sales and not fixed cost/expenses are subtracted from sales to arrive at gross profit.
PWD Incorporated is an Illinois corporation. It properly included, deducted, or excluded the following items on its federal tax return in the current year: Item Amount Federal Treatment Illinois income taxes $ 33,361 Deducted on federal return Indiana income taxes $ 18,480 Deducted on federal return Ohio Commercial Activity Tax $ 3,992 Deducted on federal return Illinois municipal bond interest $ 9,984 Excluded from federal return Indiana municipal bond interest $ 15,100 Excluded from federal return Federal T-note interest $ 2,492 Included on federal return PWD's federal taxable income was $104,000. Calculate PWD's Illinois state tax base.
Answer:
PWD's Illinois state tax base = $168,449
Explanation:
DATA
Illinois income taxes = $33,361
indiana income taxes = $18,480
Illinois municipal bond interest = $9,984
Indiana municipal bond interest = $15,100
Federal T-note interest = $2,492
Federal taxable income = $104,000
PWD's Tax Base = ?
Solution
PWD's Illinois Tax base can be calculated as follows
Formula
Illinois state tax base = Federal taxable income+Indiana income taxes+Illinois income taxes+Indiana municipal bond interest – federal t-note interest
Illinois state tax base = $104,000 + $18,480 + $33,361 + $15,100 - $2,492
PWD's Illinois state tax base = $168,449
A manufacturer that sells _ is most likely to employ personal selling.
A. Scissors with a safety attachment.
B. Generic tea at a low cost.
C. Private jets to people.
D. Packaged chips all over the world.
Answer:
C. Private jets to people.
Explanation:
Personal selling refers to a strategy in which the sales people meet with the customer to convince him/her to buy the product. This strategy is used when the goods of services are costly or technical. According to this, the answer is that a manufacturer that sells private jets to people is most likely to employ personal selling because it is an specialized and costly product that requires to meet the customer to be able to explain everything and encourage him/her to make the purchase.
The other options are not right because they are cheaper products and don't require the sales people to meet with the customer to be able to sell them.
"Given the fact that both the Navy and the Air Force regularly fly pilotless aircraft for surveillance and combat missions, the idea of a driverless fork truck seems somewhat of a no-brainer. Why not pilotless cargo aircraft such as FedEx and UPS? Why not semi-trucks moving intercity without drivers? How would your answer differ if we had high-ways that were dedicated to truck-only traffic, either on an exclusive or time-allocated basis? Where do you think the concept of probotics will eventually end up? "
Answer:
If we had highways available to truck-only traffic then the question will need to contemplate on is if the truck-only highways will enable only driver less trucks or the conventional trucks as well.
Also humans are susceptible to error. while machines usually follow strict rules.
These two different methods to driving and could cause problems and also accidents. the only method accomplish driver less trucks is to ensure truck-only highways exclusive to driver less trucks.
The idea of robotics and automations will keep growing. we may have, automated vehicles on the road in the next 20 years.
Similarly automation is set to change our home, roads, cars and how we do business today.
Explanation:
Solution
There are different reasons why we do not see driver less fork truck or pilot less cargo aircraft. but the key reasons behind them can be is stated below:
(1)Technology: The technology behind driver less truck or pilot less aircraft are still very fresh. This implies that the use of this technology is extremely high. at some point it may even include national security concern. this is the reason why the technology is not available openly to public and business organization cannot use them for their customers.
(2)Safety: Pilot less aircraft for surveillance carries a particular risk. we need to know that the workmanship of Navy and Air Force is part of these risk. Thus, the normal everyday jobs like businesses and operations do not take such high risk.
A pilot less aircraft’s crash could result in damage to lives and property and brings other issues. with the new technology the risks we go higher and best not used for mass/public consumption.
(3)Regulations: Any new design of operation often needs the government approval. Driver less cars as of now are only at its initial stage of creation. But, before this becomes a common mode of transportation, the government consent may be required.
The infrastructure needs to be present for such vehicles. These requires a lot of effort and preparation, which is not available at the moment.
Now
If we had highways assigned to truck-only traffic then the question will still be if the truck-only highways will permit only driver less trucks or the conventional trucks as well.
The problem is if we mix them. humans are liable to error and also capable of improvisation. while machines do follow strict rules. these two different methods to driving and could cause confusion and also accidents. the only way to accomplish driver less trucks is to ensure truck-only highways exclusive to driver less trucks.
The idea of robotics and automations will keep growing. we may have, automated vehicles on the road in the next 20 years (in some countries). Similarly automation is set to change our home, roads, cars and how we run business today.
For Instance, in future we could be living in a completely automated house, being taken to work by automated public/private transport and even travelling to other countries in a pilot less airplanes.
Baldwin Corp. ended the year carrying $21,580,000 worth of inventory. Had they sold their entire inventory at their current prices, how many more dollars of contribution margin would it have brought to Baldwin Corp.?
Explanation:
The given question cannot be answered as little information is provided. However it shall be an amount if $21,580,000. For, complete analysis we need to understand the current prices and various other variable costs. We know that the contribution margin is the Sale Price (SP) minus the Variable Cost (VC). It is the number of sales per unit that will be available to service fixed expenses and to generate the profit.
Therefore, to determine a more detailed answers more inputs are needed.