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2 years ago

Which of these components does a business exclude from its net income under operating surplus

Business

1 answer:

solniwko [45]2 years ago

3 0

It excludes money paid as salaries or wages to employees.

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g A speculator buys a call option for $3, with an exercise price of $50. The stock is currently priced at $49, and rises to $55

azamat

Answer:

$53

Explanation:

Call option is $3

Exercise price is $50

The stock is currently priced at $49

It rises to $55 on the expiration date

Therefore the cost price at which the speculator will break even can be calculated as follows

= ($50-$3)+($55-$49)

= $47 + $6

= $53

8 0

2 years ago

Mattel Inc.’s 2016 financial statements show operating profit before interest and tax of $519,233 thousand, net income of $318,0

zhuklara [117]

Answer:

22.38%

Explanation:

Given that,

Operating profit before interest and tax = $519,233

Net income = $318,022 thousand

Provision for income taxes = $91,720 thousand

Net non-operating expense before tax = $109,491 thousand

Mattel’s statutory tax rate for 2016 = 37%

Income before income tax:

= Net Income + Provision for income taxes

= $318,022 Thousand + $91,720 Thousand

= $409,742 Thousand

Effective tax rate:

= (Provision for Income taxes ÷ Income before tax) × 100

= ($91,720 Thousand ÷ $409,742 Thousand) × 100

= 0.2238 × 100

= 22.38%

8 0

3 years ago

At the end of 2016, Sunland Company has accounts receivable of $653,700 and an allowance for doubtful accounts of $24,200.

Anton [14]

Answer:

allowance for doubtful accounts 4,245 debit

accounts receivables 4,245 credit

--to record write-off of Madonna Inc account--

Explanation:

<em>Prepare the journal entry to record the write-off. </em>

To record the write-off we will decrease both, the allowance and the accounts receivable for the amount we consider uncollectible. Under allowance method the company never uses bad debt expense at write-off it only does at year-end adjustment

4 0

3 years ago

Keidis Industries will pay a dividend of $3.55, $4.65, and $5.85 per share for each of the next three years, respectively. In fo

german

Answer:

price = $47.82

Explanation:

Find the present value of each dividend at the required rate of return and sum them up to get the current price;

PV = FV /(1+r)^n

PV(D1) = 3.55/ (1.099^1) = 3.2302

PV(D2) = 4.65/ (1.099^2) = 3.8500

PV(D3) = 5.85 / (1.099^3) = 4.4072

PV(Price at t=4) = 53 / (1.099^4) = 36.3316

Price = 3.2302+2.9392+4.4072+36.3316

= 47.81897

Therefore, price = $47.82

8 0

3 years ago

The total cost of Jurislon to be purchased in August is: Multiple Choice $1,839,600 $1,208,700 $1,014,300 $1,017,000

ivann1987 [24]

Answer: $‭1,014,300‬

Explanation:

The company wants to maintain 20% of the next month's needs as ending inventory.

One Miniwap requires 2.5 kg of Jurision to be made.

Materials purchased is;

= Ending inventory + Materials used - Begining inventory

Ending Inventory;

= 20% of September Jurision

= 20% * 21,300 * 2.5

= 10,650 kg

Materials used

= 2.5 kg * August Miniwaps

= 2.5 * 22,600

= 56,500 kg

Materials Purchased = 10,650 + 56,500 - 10,800

= 56,350‬ kg

Cost of Jurision is $18 per kilo

= 56,350‬ * 18

= $‭1,014,300‬

3 0

3 years ago