Answer:
In my opinion the most suitable answer is E. increase his sources of income to show a rise in his income after taxes
Explanation:
The reason is he could lower his expenses too, but for how long? Inflation is going to eat his salary away anyway possibly in 5 to 10 years so what Daventry ustock do is to create another source of income so that he is safe. Possibly through investing in income generating assets, real estate and possibly a side hustle! (A small time business)
Answer:
The correct answer is (D)
Explanation:
The restaurant is using a micro-marketing technique which is an efficient and effective tool to measure marketing campaign. Micro-marketing method is used by the restaurant to help them understand the assessment of the customers and to make necessary changes. Micro-marketing technique is used to target a small group of customers. In this case, the restaurant is targeting customers who use the restaurant website.
Answer:
Tax shield on depreciation = 600
Explanation:
given data
new piece of equipment = $11,000
salvage value = $1,000
marginal tax rate = 30%
average tax rate = 20%
time period = 5 year
to find out
net effect of annual depreciation on the free cash flow
solution
we know here cost of asset and Salvage value so we get depreciation cost
depreciation cost is = 11000 - 1000 = 10000
and
annual depreciation = 2000
so that Tax shield on depreciation will be
Tax shield on depreciation = 2000 × 30%
Tax shield on depreciation = 600
<u>Calculation of Return on Total Assets:</u>
Return on Total assets can be calculated using the following formula:
Return on Total Assets = Net Income / Total Assets
We can calculate Net income as follows:
Sales $2960
Less: Operating Costs $2675
Less: Interest charges $125
Income before tax = 160
Less: Tax (160*40%) = 64
Net Income = $96
Hence , Return on Total Assets = 96/2100 = 0.0457 =<u>4.57%</u>
