Answer:
c. $40,000
Explanation:
Reduction in Account Receivables $500,000
($2,500,000 * 20%)
<u>* Interest rate 11% </u>
Annual saving $55,000
Less: Annual cost of system <u>-$15,000</u>
Pretax Net annual savings <u>$40,000</u>
Answer:
$31,000
Explanation:
The computation of the cash collected from customers is shown below:
Cash collected from customers = Sales + Decrease in accounts receivable
= $30,000 + $1,000
= $31,000
We simply added the sales and the Decrease in accounts receivable so that the accurate amount can come
All other information which is given is not relevant. Hence, ignored it
Answer:
The balance in the Sinking Fund immediately after repayment of the loan will be $2,133.19
Explanation:
Hi, John will pay the loan by paying the yearly interest and the rest is going to go to the sinking fund, so, if he has $1,627.45 and the annual interest of the loan are $1,000, he will be depositing $627.45 into the sinking fund for ten years. Therefore, the future value of the annual deposits of the sinking can be found by using the following formula.
Where:
A = equal annual savings into the sinking fund (that is $627.45)
r = effective rate of the sinking fund (14%)
n = 10 years
Everything should look like this.
Now, this is the balance after 10 years, but remember that John has to pay the loan, which is $10,000 (not $11,000 because John pays the interest of the loan and then deposits the balance into the sinking fund). Therefore, the balance after repaying the loan is $12,133.19 - $10,000 = $2,133.19.
Best of luck.
Answer:
The tax that must be added to the C corporation tax liability for the year before the S election = $49000*1/4=$12250
The rest of the three instalments of $12250 each will be paid with Lent Corporation's next three tax returns
Explanation:
FIFO Value/basis =$650000
LIFO value/basis =$510000
Difference =$140000
35% Tax =$140000*35% = $49000
The tax that must be added to the C corporation tax liability for the year before the S election = $49000*1/4=$12250
The rest of the three instalments of $12250 each will be paid with Lent Corporation's next three tax returns
The date the board of directors votes to declare and pay a cash dividend is called the date of declaration.
<h3>What does the declaration date mean?</h3>
A declaration date refers the date on which the board of directors of a company announces the next date of dividend payment. The board of directors of a company announces a cash dividend on a declaration date, which involve paying a certain amount of money per common share.
A declaration statement is issued that mainy includes the details such as the size of the dividend, the record date and its payment date.
Basically, the date on which the directors vote to declare and pay a dividend is called the declaration date.
Learn more about declaration date here:-
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