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1 year ago

Is great profit or nay profit more important to consider when your deciding how successful and profitable a company is

1 answer:

5 0

Yes, gross profit or net profit is important in considering if your company is successful and profitable. The main of a business within an economy is to earn profit from its operations and activities.

Net profit is the quantity of money your business earns after deducting all operating, interest, and tax fees over a given period of time. to reach at this cost, you need to recognize a business enterprise's gross profit. If the value of internet income is bad, then it's far known as internet loss.

How do you calculate your net profit?

Net profit is gross earnings minus operating expenses and taxes. You may also consider it as general profits minus all expenses.

What is net profit also referred to as?

Synonymous with internet income, net profit is a business enterprise's general earnings after subtracting all costs. Expenses subtracted consist of the prices of regular business operation as well as depreciation and taxes. Net profit is generally called a business enterprise's “bottom line” and is a true indicator of a business enterprise's profitability.

What's net profit and gross?

Gross earnings suggests how an awful lot money your enterprise makes after meeting a few prices. Net profit indicates how an awful lot you make after assembly all expenses. A business's gross profit is the money it has left after buying the goods and offerings it sold. Its internet income is the cash left after paying clearly all fees and taxes.

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Matrix Corporation's balance sheet and income statement appear below: Comparative Balance Sheet Ending Balance Beginning Balance

Bad White [126]

Answer:

Check the explanation

Explanation:

Cash flow from operating activities:

Net income $116

Adjustment to reconcile net income to cash basis:

Depreciation expense ($359+1-347) $13

Gain on sale of equipment (14)

Decrease in account receivable (40-39) $1

Decrease in inventory (44-43) $1

Increase in account payable (30-26) $4

Decrease in accrued liabilities (18-15) (3)

Decrease in income tax payable (40-39) (1)

Net cash flow from operating activities $117

5 0

3 years ago

In a wholly owned or closely held corporation, there really is little distinction between the functions of a board of directors

umka21 [38]

It is true that there is little distinction between the functions of a board of directors and those of a board of advisers in a wholly owned or closely held corporation.

<h3>What is a board of directors and board of advisors? </h3>

A board of directors refers to the elected group of individuals that represent shareholders while the board of advisors refers to the group of individuals who are appointed to provide counsel businesses.

In conclusion, it is true that there is little distinction between the functions of a board of directors and those of a board of advisers in a wholly owned or closely held corporation.

Read more about board

brainly.com/question/4771644

8 0

2 years ago

Your company is considering a new project that will require $10,000 of new equipment at the start of the project. The equipment

zmey [24]

Answer:

Estimate the present value of the tax benefits from depreciation:

D. $1,851

Explanation:

Step 1: Determine annual depreciation

A.D=(A.C-S.V)/N

where;

A.D=annual depreciation

A.C=acquisition cost

S.V=salvage value

N=useful life

In our case;

A.D=unknown, to be determined

A.C=$10,000

S.V=$3,000

N=5 years

replacing;

A.D={(10,000-3,000)/5}=7,000/5=$1,400

Annual depreciation=$1,400

Step 2: Determine annual tax benefits

Annual tax benefits=tax rate×annual depreciation

where;

tax rate=34%=34/100=0.34

annual depreciation=$1,400

replacing;

Annual tax benefits=0.34×1,400=$476

Step 3: Determine present value of the annual tax benefits

Year Future value Present value

1 476 476/{(1+0.09)^1}=436.70

2 476 476/{(1+0.09)^2}=400.64

3 476 476/{(1+0.09)^3}=367.56

4 476 476/{(1+0.09)^4}=337.21

5 476 476/{(1+0.09)^5}=309.37

Total present value of the tax benefits=436.70+400.64+367.56+337.21+309.37=$1,851.48

Estimate the present value of the tax benefits from depreciation=$1,851

3 0

3 years ago

How long should an electronic cover letter be?

Delicious77 [7]

Approximately 150 words.

3 0

3 years ago

Read 2 more answers

Which one of the following best illustrates that the management of a firm is adhering to the goal of financial management?a. An

-BARSIC- [3]

Answer:

increase in the market value per share

Explanation:

Market value per share is the price that the share of a company can be traded if it is to be sold to a willing investor in a stock market.

The market value per share is determined by the company's financial performance, favorable market information concerning the enterprise, perceived future prospects plus investors or public confidence.

One of the goals of financial management is the maximization of the shareholders wealth, this will find expression in how the business actions or inaction of the management has enriched the shareholders.

5 0

3 years ago