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Gwar [14]
4 years ago
14

Companies generate income from their "regular" operations and from things like interest on securities they hold, which is called

non-operating income. Mitel Metals recently reported $9,000 of sales, $6,000 of operating costs other than depreciation, and $1,500 of depreciation. The company had no amortization charges and no non-operating income. It had issued $4,000 of bonds that carry a 7% interest rate, and its federal-plus-state income tax rate was 40%. What was the firm's operating income, or EBIT?
Business
1 answer:
Gekata [30.6K]4 years ago
4 0

Answer:

$1,500

Explanation:

Given that,

Sales = $9,000

Operating costs = $6,000

Depreciation = $1,500

Interest rate = 7%

Federal-plus-state income tax rate = 40%

Operating income or EBIT:

= Sales - Operating costs - Depreciation

= $9,000 - $6,000 - $1,500

= $1,500

Here, the interest rate and taxes were ignored as we want to determine the operating income or earnings before interest and taxes. Interest on bonds is a non operating income.

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During the current month, the Acme company had receivables of $16,590. It also had outgoing expenditures of $12,730. The company
andreyandreev [35.5K]

Answer:

$3,849.87

Explanation:

The change in balance is the net of the receipts and the payments.

The receipts include the receivables and the interest paid by the bank while the payments include the outgoing expenditure and bank charge.

Balance change

= $16,590 - $12,730 -$12.50 + $2.37

= $3,849.87

6 0
3 years ago
If government tax revenues change automatically and in a countercylical direction over the course of the business cycle, this wo
luda_lava [24]

Answer: Option (C) is correct.

Explanation:

Correct Option: Political business cycle

If government tax revenues change automatically and in a countercylical direction over the course of the business cycle, this would be called a Political business cycle.

These cycles are present in macroeconomic variables such inflation rate, output and unemployment. There are two types of regime follow in this cycle are as follows:

(i) Regime A consist of expansionary polices which results in a economic growth and inflation. If the inflation rate is high enough then there is a withdrawal of policy.

(ii) Regime B consist of contractionary polices which results in reducing economic growth and inflation. It will become voted out if the unemployment is too high, replaced by Regime A. It generally lead to downward movement of the cycle.

7 0
3 years ago
To gain assurance that all inventory items in a client's inventory listing schedule are valid, an auditor most likely would trac
andrew-mc [135]

To gain assurance that all inventory items in a client's inventory listing schedule are valid, an auditor most likely would vouch (C) items listed in the inventory listing schedule to inventory tags and the auditor's recorded count sheets.

<h3>What are inventory items?</h3>
  • Inventory item - a discrete product that can be indicated as being in stock.
  • You can track inventory if your company sells stock items.
  • A product purchased for resale that is tracked in Stock and on the Balance Sheet is an inventory item.
  • An inventory list should, in general, include the product's name, SKU number, description, cost, and quantity.
  • Inventory lists assist brands in managing and monitoring stock levels, enabling tighter inventory control and a more streamlined approach to inventory management.
  • An auditor will most likely attest items listed in the inventory listing schedule to inventory tags and the auditor's recorded count sheets to get assurance that all inventory items in a client's inventory listing schedule are valid.

Therefore, to gain assurance that all inventory items in a client's inventory listing schedule are valid, an auditor most likely would vouch (C) items listed in the inventory listing schedule to inventory tags and the auditor's recorded count sheets.

Know more about inventory items here:

brainly.com/question/24868116

#SPJ4

Complete question:

To gain assurance that all inventory items in a client's inventory listing schedule are valid, an auditor most likely would vouch

A. Inventory tags were noted during the auditor's observation of items listed in the inventory listing schedule.

B. Inventory tags were noted during the auditor's observation of items listed in receiving reports and vendors' invoices.

C. Items listed in the inventory listing schedule to inventory tags and the auditor's recorded count sheets.

D. Items listed in receiving reports and vendors' invoices to the inventory listing schedule.

7 0
2 years ago
An organization accused of illegal discrimination may be able to successfully defend its employment practices by showing that th
alexgriva [62]

Answer:

a bona fide occupational qualification

Explanation:

Bona Fide Occupational Qualification is a term used to describe a type of discrimination that is not illegal, even if it seems. It is a positive discrimination used by companies to hire new employees, when necessary, based on factors that are considered discriminatory such as gender, religion, nationality, among others.

An example of this can be seen when the film recording industry needs to hire an Asian actor to play a character of Asian origin. This industry uses nationality as a discriminatory factor to hire someone, but in this scenario, this does not discriminate.

8 0
3 years ago
Read 2 more answers
Which of the following statements is true?
bulgar [2K]

the answer is the letter C

7 0
3 years ago
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