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
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.

You might be interested in
Which of the following situations would not require that long-term liabilities be reported as current liabilities on a classifie
emmainna [20.7K]

Answer:

The situation that would not require the long-term liabilities to be reported as current liabilities on the balance sheet is :"The company intends to refinance the debt and did so prior to issuance of the financial statements".

Explanation:

Analyzing all the options given above:

  • The long-term debt matures within the upcoming year- which means that the liability payable is less than one year, therefore, it is a current liability.
  • The creditor has the right to demand payment due to a contractual violation- which means that the money is immediately payable. Therefore, it refers to the current liability.
  • The long term debt is callable by the creditor - which means it is also to be recorded as a current liability.

The above three statements clearly explain that they are recorded as a current liability, but when the company intends to refinance the debt and did so prior to issuance of the financial statements does not record the current liability.

6 0
3 years ago
List 10 effective methods used to maintain employment. 
Sphinxa [80]

Answer:

I don’t know that I would call them methods - a better word might be behaviors. And I don’t know if I can come up with ten.

  • Never be late for work and never leave early to go home. If you must leave early (or you know you’ll be coming in late the next day) be sure to tell your boss first.
  • Dress appropriately and respectfully for the job. Always start the day wearing clean clothes.
  • Be respectful of your boss
  • Do every assignment to the best of your ability. When you are finished, let your boss know and ask what you can do next rather than waiting to be told (unless you know what to do next).
  • Don’t whine or complain about the work assigned to you
  • Try to constantly learn more about your job and apply what you learn to do your job better
  • Don’t badmouth your fellow employees (unless specifically asked by your boss)
  • When it doesn’t severely impact your work, try to help out your fellow employees if they need it - especially the newer ones
  • Keep your work area organized
  • Don’t be afraid to make constructive, non-critical suggestions to your fellow employees or even your boss, but be sure the suggestions are well-researched and carefully thought out
6 0
3 years ago
In a contract, each party has what?
vivado [14]

The answer to your question is D

6 0
3 years ago
Read 2 more answers
Assume Joe Harry sells his 25 percent interest in Joe's S Corporation, to Tyrone on January 29. Using the specific identificatio
sergeinik [125]

Answer:

$65,000

Explanation:

Calculation to determine how much income does Joe Harry report if Joe's S Corporation, earned Using the specific identification allocation method

Using this formula

Income=Amount earned*Interest rate

Let plug in the formula

Income=$260,000 × 25%

Income= $65,000

Therefore Using the specific identification allocation method how much income does Joe Harry report if Joe's S Corporation, earned will be $65,000

5 0
3 years ago
What GPA do you need to get into the Junior Honor Society?
serious [3.7K]

Answer:

you need a 4.0 gpa to be in the junior honor society

Explanation:

cause

3 0
4 years ago
Read 2 more answers
Other questions:
  • Turtle Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Sel
    12·1 answer
  • Burns Industries currently manufactures and sells 23,000 power saws per month, although it has the capacity to produce 38,000 un
    8·1 answer
  • Freedom of enterprise Group of answer choices is a characteristic that is common to most economic systems. in a market system me
    15·1 answer
  • Solve the simultaneous equation x + y = 2 and 4y² - x²= 11​
    9·1 answer
  • If labor becomes more productive, the production possibilities frontier will:__________
    7·1 answer
  • Elly Industries is a multi-product company that currently manufactures 30,000 units of part MR24 each month for use in productio
    11·1 answer
  • The Sisyphean Company has a bond outstanding with a face value of $ 1 comma 000 $1,000 that reaches maturity in three three year
    15·1 answer
  • 1. What is the eventual effect on real GDP if the government increases its purchases of goods and services by $60,000?
    11·1 answer
  • On January 1, 2021, Red Inc. issued stock options for 210,000 shares to a division manager. The options have an estimated fair v
    11·1 answer
  • Assume you are the internal controls expert for your company. Your boss has read about Madoff’s Ponzi scheme described in our te
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!