Solution :
Expected sales = current sales x (1 + projected sale next year increase)
= 5,700 x (1 + 15%)
= $ 6555
Expected cost = current cost x (1 + projected sale next year increase)
= 4200 x (1 + 15%)
= $ 4830
Taxable income = 1500 x ( 1 + 15%)
= $ 1725
Taxes (34%) = 510 x (1+15%)
= $ 586.5
Net income = sales - cost - taxes
= 6555 - 4830 - 586.5
= $ 1138.5
Calculation of total asset :
Current asset = 3,900 x 1.15
= $ 4485
Fixed asset = 8100 x 1.15
= $ 9315
Total asset = 4485 + 9315
= $ 13800
Calculation of total liabilities
Current liabilities = 2200 x 1.15
= $ 2530
Long term debt = $ 3,750
Equity = $ 6050 + (1138.5 x 0.50 )
= $ 7189
Total liabilities = $ 2530 + $ 3,750 + $ 7189
= $ 13, 469
Therefore the external financial needed is = $ 13800 - $ 13, 469
= $ 331
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Answer:
Its good but u could use a chicken or turkey instead of the wolf if its for a restaurant and maybe come up with a slogan which fits like satisfying hunger aprt frm that it looks good
Explanation:
Answer:
d. A larger fixed assets turnover ratio and a larger gain on asset disposal
Explanation:
Accelerated depreciation is a method of depreciation whereby the book value of an asset is rapidly depreciated or reduced i.e at an accelerated rate.
This method usually minimizes taxable income in the initial years as a higher amount of depreciation is claimed.
Fixed assets turnover ratio refers to what percentage of net sales is attributable to an entity's fixed assets. It is expressed as:

Gain on sale of asset disposal = Sale value - Book Value
Book Value = Cost less accumulated depreciation till date
As can be seen, Average fixed assets balance would reduce thereby increasing fixed assets turnover ratio.
Similarly, due to higher depreciation charged, Book Value would be comparatively less, which would lead to larger gain on assets disposal in the initial years.