Answer:
1. Her return on investment is 20%
2. $40,000
Explanation:
1. We have Return on Investment = Net income from the Investment / The invested amount.
The net income is clearly stated in the Question which is the after-tax profit at $20,000.
The invested amount of Amelia is the amount she invested in Goodies Gift Shop which is illustrated as net worth ( owner's equity) at $100,000 in the Balance Sheet (Year 2).
As we have Return on Investment = 20,000/100,000 = 20%
2. We have the projected pre-tax profit = Projected margin - total overhead = 250K - 200K = $50,000
The after-tax profit = pre-tax profit x (1- tax rate) = 50K x (1-20%) = $40,000
Answer:
cash collections from credit sales that the company will include in its cash budget for the second month is $55,500
Explanation:
Second Month Cash Collections will include the following Cash flows:
(1) 60% of the 2nd month`s sales
(2) 35 % of the 1st month`s sales
<u>Therefore cash collections from credit sales :</u>
(1) 60% of the 2nd month`s sales ( $68,000×60%) = $40,800
(2) 35 % of the 1st month`s sales ( $42,000× 35 %) = $14,700
Total cash collections = $55,500
Answer:
A firm must be effectively organized to capture value. A firm has to ensure it has a properly ongoing work system where everything balances. Proper marketing and advert, viability in product quality, organized administrative and technical structuring, analysis on probable customer base etc., these and many more factors have to be critically looked into and worked on to gain competitive advantage. What is the competition doing right that we are missing? who are our competition? Why are they the peoples favorite? How can we become the peoples favorite? Questions of these sort if worked on and implemented, will facilitate effective organizational growth.
The correct option is: For each unit of the good that is sold, buyers bear <u>one-half of the tax burden and sellers bear one-half of the tax burden.</u>
<u>Explanation</u>:
Incidence of tax is a term referred in economics which deals with division of taxes. Tax incidence refers to division of tax among the buyer and seller for a product. The tax incidence is related to the price elasticity of supply and demand.
When a product is sold, the buyer of the product is charged with one-half of the tax burden and the seller of the product bears the other-half of the tax burden.
The incidence of tax can be observed in two ways:
i) Formal incidence
ii) Effective incidence
