Answer:
a. $12,000
b. $32,000
c. $17,000
Explanation:
The computations are shown below:
a. Net income = (Income tax paid ÷ Tax rate) – Income tax paid
Net income = ($3,000 ÷ 20%) - $3,000
= $12,000
b. Revenues = Cost of goods sold + Income tax paid + Administration expense + Interest paid + Depreciation + Net income
= $9,000 + $3,000 + $4,000 + $2,000 + $2,000 + $12,000
= $32,000
3. EBIT = Net income + Interest expense + Taxes
= $12,000 + $2,000 + $3,000
= $17,000
Answer: It is important to establish limits through the partnership agreement, because by trust there could be disagreements in the future, some ideas for this agreement are the following:
I. The dividends resulting from the coffee shop profits must be distributed equally and will correspond to the amount resulting from discounting sales less costs and expenses.
II. Personal loans will not be allowed to the owners with the money taken from the coffee shop box.
III. It will not be allowed to consume the products of the coffee shop without paying what corresponds.
IV. Both owners will have the same rights to perform the duties of a manager.
Answer:
Break-even point (dollars)= $9,976.25
Explanation:
Giving the following information:
Fixed costs:
Rent $2,500
Utilities $500
Interest $750
An insurance premium of $200
Advertising on local bus $250 a month
Total= $4,200
A small bucket of take-out chicken, the only menu item, is priced at $9.50. Unit variable costs for the bucket of chicken are $5.50.
To calculate the break-even point in dollars, we need to use the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 4,200/ [(9.5 - 5.5)/9.5]
Break-even point (dollars)= 4,200/0.421
Break-even point (dollars)= $9,976.25
Spiritually, risky behavior can truly take a toll. If you are religious, your actions won’t be in line with your beliefs (most likely). There is a trickle down effect from there. Lots of times, risky behavior makes a person feel paranoid because a person is doing things s/he feels is wrong. All of that takes a toll on a person physically. When you compromise yourself, you will tend to be on an emotional roller coaster. Not a great way to live
Answer:
$8750.87
Explanation:
This is compound interest problem. The formula used to solve this would be:
Where
F is the future value (what we want, after 3 years)
P is the initial value (given 6900)
r is the rate of interest per period
here, 8% per year, so 8/4 = 2% per period (since compounded per quarter)
t is the time (3 years and compounding per year so times of compounding is 3*4 = 12), so t = 12
Substituting, we get our answer:
<u>There will be about $8750.87 at the account at the end of 3 years!</u>
