Why do corporations merge into conglomerates

Net income reported on the income statement for the current year was $350,000. Depreciation recorded on plant assets was $26,000

Sonbull [250]

Answer:

$357,500

Explanation:

Cash flow from operating activities on the statement of cash flows:

= Net income + Depreciation Expense - Increase in accounts receivable - Increase in inventory + Decrease in prepaid expense - Decrease in accounts payable

= $350,000 + $26,000 - $3,000 - $5,000 + $2,500 - $13,000

= $357,500

Therefore, the net cash flow from operating activities is $357,500.

6 0

3 years ago

1. Determine whether a $100,000, 3-month T-Bill selling at $97,645 or a 10%, semi-annual coupon bond selling at par has the grea

stiv31 [10]

The 10% semi-annual coupon bond selling at par has the greater effective annual return than the $100,000, 3-month T-Bill selling at $97,645.

<h3>Data and Calculations:</h3>

T-Bill:

Face value of T-Bill = $100,000

Present value of the T-Bill = $97,645

Effective yield rate = 9.65% ($2,355/$97,645 x 100 x 12/3)

Bond:

Face value of bond =$100,000

Interest = 10% semi-annual

Present value of the bond = $104,761.90

Effective yield rate = 9.80%

Thus, the 10% semi-annual coupon bond selling at par has the greater effective annual return than the $100,000, 3-month T-Bill selling at $97,645.

Learn more about Bonds and T-Bills at brainly.com/question/15394251

4 0

2 years ago

Tyson (48 years old) owns a traditional IRA with a current balance of $50,000. The balance consists of $30,000 of deductible con

kvasek [131]

Answer:

$12,500 income tax; $1,250 penalty

Explanation:

The distribution from the traditional IRA is fully taxable since he Tyson receives a distribution of the entire $50,000 balance of his traditional IRA

($50,000 x 25%) = $12,500.

Therefore Tyson must pay a 10% penalty on the portion of the distribution that he did not contribute to a Roth IRA despite Tyson receives a distribution of the entire $50,000 balance of his traditional IRA in which he retains $12,500 to pay tax on the distribution

($12,500 x 10%) =$1,250

Therefore $12,500 will be his income tax amount and $1,250 will be his penalty amount

8 0

3 years ago

On January 1, 2018, Sanderson, Inc. acquired a machine for $1,110,000. The estimated useful life of the asset is five years.

denpristay [2]

Answer:

$702,400

Explanation:

Data provided in the question:

Cost of the machine acquired = $1,110,000

Useful life of the machine = 5 years

Residual value = $91,000

Method of depreciation is straight line

Now,

Annual depreciation = $\frac{\textup{(Cost price - Residual value)}}{\textup{Useful life}}$

or

⇒ Annual depreciation = $\frac{\textup{(1,110,000 - 91,000)}}{\textup{5}}$

or

⇒ Annual depreciation = $203,800

Book value = Cost of the machine - (Total depreciation in the given period)

now,

Duration of period from January 1, 2018 to end of 2019 = 2 years

Therefore,

The total depreciation = 2 × Annual depreciation

= 2 × $203,800

= $407,600

Hence,

Book value at the end of 2019 = $1,110,000 - $407,600

or

Book value at the end of 2019 = $702,400

4 0

3 years ago

Nu Company reported the following pretax data for its first year of operations. Net sales 2,950 Cost of goods available for sale

melomori [17]

Answer:

NU company.

The reason LIFO and FIFO present 2 different valuation of inventory is because of the way inventory is expensed in either methods.

LIFO stands for Last in First out. Meaning the last stock to be received should be the first to be issued to production.

If it thus shows that our costs of inventory has been increasing over the period, the inventory expensed to cost of sales will be high while the inventory balance in the balance sheet low. And the reverse if the costs of new inventory purchases have been declining.

FIFO stands for First in First out. Meaning the first inventories receives must be exhausted before we move to the receipt after that, and on and on.

If it thus shows that our costs of inventory has been increasing over the period, the inventory expensed to cost of sales will be low while the inventory balance in the balance sheet high. And the reverse if the costs of new inventory purchases have been declining

Nu company Gross Profit

Net sales $2,950

Less costs of sales:

Cost of goods available for sale 2,350

Less inventory closing 920

Costs of sales 1,430

Gross profit $1,520

Gross Profit % = $1,520 / $2,950

= 52% (c)

3 0

3 years ago