1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
irakobra [83]
3 years ago
6

Butterfly tractors had $14 million in sales last year. cost of goods sold was $8.00 million, depreciation expense was $2 million

, interest payment on outstanding debt was $1 million, and the firm's tax rate was 35%.
a. what was the firm's net income?
Business
1 answer:
Kruka [31]3 years ago
8 0
The net income is $1.95 million, this is how we calculate this;
Sales last year is $14 million
Goods sold cost = $8 million
Depreciation expense = $2 million and debt is $1 million.
So the amount left = $14 million - ($8million + $2 million + $1 million ) = 14 - 11 = 3 million
tax rate is 35 %, so 35% of 3 million = 0.35 x 3 = $1.05 million
Net income = $3 million - $1.05 million = $1.95 million
You might be interested in
Assume that you have a subsidiary in Australia. The subsidiary sells mobile homes to local consumers in Australia, who buy the h
Nat2105 [25]

Answer:

B. decrease

Explanation:

The subsidiary's cost of purchasing materials measured in Australian dollar will decrease. The subsidiary in Australia sells mobile homes. It borrows funds from local bank and purchases material from Hong Kong and pays Hong Kong in HK$ which is tied to US dollar. So when Australian dollar appreciates against the Hong Kong dollar, it will appreciate against US dollar as the Hong Kong dollar is tied to US dollar. The subsidiary will pay decreased cost of purchasing material due to appreciations of A$ by increasing interest rate in Australia.  

4 0
3 years ago
Nelson Company's Radio Division currently is purchasing transistors from Charlotte Co. for $3.50 each. The total number of trans
melamori03 [73]

Answer:

The range of possible transfer is $ 3.25 to $ 3.50

Explanation:

Data provided:

The purchasing cost of the transistor = $ 3.50

The total number of transistors needed = 8,000

The production cost of the transistor = $ 4.00

The included variable cost = $ 3.25

The included fixed cost = $ 0.75

Now,

the fixed cost cannot be altered, thus it will be there

hence,

the variable cost will be the factor that will evaluate the decision i.e $ 3.25

therefore, the <u>range of possible transfer is $ 3.25 to $ 3.50</u>

3 0
3 years ago
Red Builders agrees to construct a new building for Blue Co. for a total contract price of $6,000,000. The estimated constructio
Evgesh-ka [11]

Answer: $300,000

Explanation:

Total expected costs = cost incurred to date + estimated cost to complete

                                   = 1,200,000 + 3,600,000

                                   = 4,800,000

Percentage of completion=\frac{Cost\ incurred\ to\ date}{Total\ expected\ cost}\times 100

Percentage of completion=\frac{1,200,000}{4,800,000}\times 100

                                                 = 0.25

                                                 = 25%

Profit = contract revenue - Total expected costs

         = $6,000,000 - 4,800,000

         = $1,200,000

Cumulative gross profit = Profit × Percentage of completion

                                       = $1,200,000 × 0.25

                                       = $300,000

Therefore, Red Builders should have recognized profit at the end of year 1 in the amount of $300,000.

4 0
3 years ago
Hi there !
Zanzabum

Answer:

Capital expenditures are typically one-time large purchases of fixed assets that will be used for revenue generation over a longer period while revenue expenditures are typically referred to as ongoing operating expenses, which are short-term expenses that are used in running the daily business operations.

6 0
2 years ago
Read 2 more answers
A test contracting firm has agreed to create a three part social studies test intended to measure sixth graders knowledge of geo
sertanlavr [38]

Answer: <em>Internal consistency</em>

Explanation:

In discipline such as research and statistics, internal consistency is referred to as or known as typically or usually a measure that is based on correlations in between different variable and items particularly on a same test or maybe on sub-scale on the larger test. It tends to measure whether variables and items that measure same construct do produce the similar scores.

6 0
3 years ago
Read 2 more answers
Other questions:
  • Direct Materials and Direct Labor Variances At the beginning of June, Bezco Toy Company budgeted 5,000 toy action figures to be
    14·1 answer
  • ________ was a protest movement of debt-ridden farmers facing foreclosures on their homes and farms.
    5·1 answer
  • The Modigliani and Miller hypothesis suggests that capital structure doesn't matter. All of the following conditions need to be
    8·1 answer
  • Naira is a consumer research and market analyst. She prepares questionnaires that are designed to identify a consumer's distingu
    11·1 answer
  • Mary purchased a 10-year par value bond with semiannual coupons at a nominal annual rate of 4% convertible semiannually at a pri
    5·1 answer
  • You are considering an investment in fields and struthers, Inc, and want to evaluate the firm's free cash flow From the income s
    10·1 answer
  • During an interview, _______________questions require you to use your own experiences and attributes to craft answers and often
    10·1 answer
  • Scott invests money in fixing up his house, an endeavor that he expects will generate profits because he will be able to rent it
    8·1 answer
  • Ajay borrowed $6000 cash from his friend Tim, *
    11·1 answer
  • Suppose a stock had an initial price of $50 per share, paid a dividend of $.80 per share during the year, and had an ending shar
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!