Answer:
$34,645
Explanation:
Given that,
sales = $318,400
costs = $199,400
depreciation expense = $28,600
interest expense = $1,100
Tax rate = 35 percent
Dividends paid = $23,400
Profit before tax:
= Sales - cost - Depreciation - Interest
= $318,400 - $199,400 - $28,600 - $1,100
= $89,300
Profit after tax:
= Profit before tax (1 - Tax rate)
= $89,300 (1 - 0.35)
= $89,300 × 0.65
= $58,045
Therefore, the addition to retained earnings
= Profit after tax - Dividend paid
= $58,045 - $23,400
= $34,645
Answer:
The company’s target debt-equity ratio is 1.16 : 1
Explanation:
Percentage flotation costs = 1 - (14100000/14100000 + 735000)
= 1 - (14100000/14835000)
= 4.95%
We know that:
(1 + Debt/Equity)*4.95% = 0.071 + 0.031*(Debt/Equity)(Percentage flotation cost equation)
0.0495 + 0.0495*(Debt/Equity) = 0.071 + 0.031*(Debt / Equity)
0.049545*(Debt/Equity) - 0.031*(Debt/Equity) = 0.071 - 0.0495
0.018545*(Debt/Equity) = 0.021455
Debt/Equity = 0.021455/0.018545
Debt / Equity = 1.16 : 1
Therefore, The company’s target debt-equity ratio is 1.16 : 1
Answer:
The three sites that are listed as sensitive sites in the location and transportation (LT) category that should be built on are;
1. Wetlands
2. Prime farmland
3. Flood plains
Explanation:
The location and transportation category of credits is based on where the project is located and the accessibility to public transport. Accessibility is looked at in terms of how flexible the area fits in with different modes of public transport. Either by bus, or by train. These credits are awarded based on a number of factors that promotes environmental conservation, accessibility to public transport, and even public parks. The main goal of having this kind of rating systems is in to encourage green building systems. For example, by making public transport easily accessible to the public, the need for personal cars is greatly reduces. This in turn reduces the level of carbon emissions from the cars.
An attempt has also been made to protect building in sensitive locations like;
a. Wetlands: a wetland is distinct area where that is seasonally or permanently flooded with water. Building in such areas should be limited since the water is essential for human survival. Water in such areas also supports various Eco-systems and thus should not be tampered with. Building near wetlands also promotes pollution and thus should be avoided.
b. Prime farmland: this is a designated place by the United States department of agriculture that has the best physical and chemical environmental conditions for agricultural activities. They also need to be protected.
c. Floodplains: this is a low-lying area that forms part of a river basin where the river stretches out across the banks during flooding. Building in such areas should be prohibited since they can cause collapse and loss of lives. Buildings in such areas are also prone to pollution and thus should be avoided.
Answer:
An intangible asset's annual amortization expense reduces its value on the balance sheet, which reduces the amount of total assets in the assets section of the balance sheet. This occurs until the end of the intangible asset's useful life.
Explanation: