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marishachu [46]
4 years ago
8

Assume the Hiking Shoes division of the All About Shoes Corporation had the following results last year (in thousands). Manageme

nt's target rate of return is 20% and the weighted average cost of capital is 30%. Its effective tax rate is 40%.-Sales $5,000,000-Operating income 1,250,000-Total assets 1,000,000-Current liabilities 750,000What is the division's Residual Income (RI)?A) $1,050,000B) $420,000C) $2,000,000D) $950,000
Business
1 answer:
NNADVOKAT [17]4 years ago
5 0

Answer:

A) $1,050,000

Explanation:

Residual income

= Net operating income - (Total assets*Target rate of return)

= 1,250,000 - (20%*1,000,000)

= $1,050,000

Therefore, The division's Residual Income is $1,050,000.

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Boston Company manufactures pipes and applies manufacturing overhead costs to production using a budgeted predetermined overhead
lianna [129]

Answer:

Actual overhead= $37,000

Explanation:

Giving the following information:

Boston Company manufactures pipes and applies manufacturing overhead costs to production using a budgeted predetermined overhead rate of $18 per direct labor-hour.

Allocated overhead= $18*3600= $64,800

Actual overhead:

Indirect labor $9,000

Plant facility rent $20,000

Depreciation on plant machinery $8,000

Total= $37,000

5 0
3 years ago
Property taxes are usually determined based on
xxTIMURxx [149]

Answer;

-Market value of the property

Explanation;

-Property tax or real estate tax is a tax charged on immovable property such as land and structures that are permanently attached to the ground such as a house, building, or land. Therefore; If you own a home, you pay property (real estate) tax directly to your local tax assessor or indirectly with your monthly mortgage payment.

-Personal property tax on the other hand, is an annual tax imposed on movable assets, such as mobile homes, RVs, vehicles, boats, planes, etc. For example, the portion of your vehicle's registration or license fee that's based on the value of the vehicle is considered a personal property tax.

8 0
4 years ago
Read 2 more answers
For many years, general electric had a corporate strategy of being among the top three firms in any market in which it operated;
Nostrana [21]

Decreasing their product mix.

If a company cannot meet their strategic goals for a product they may decide to stop the sale and production of that item all together to focus resources on better-performing goods.

8 0
3 years ago
Explain why it is important to compile a bibliography
nikdorinn [45]
So you are giving credit to the sources and information that you used in the work and so you are not penalized for plagiarism
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3 years ago
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When Beck joined his uncle's oil exploration company in east Texas, he was given several hundred shares of stock in the firm, an
konstantin123 [22]

Answer:

Master limited partnership.

Explanation:

Master limited partnership is also called publicly traded partnership and is a publicly traded entity that is taxed as a partnership.

There is a combination of tax advantage of a partnership and the ability of the form to get funding by issuing securities.

To get tax benefits the business should generate at least 90% of their profit from qualified processes such as processing, production, storage, transportation, and real property rents.

Beck was given several hundred shares of stock in the firm, and was officially made a partner. The firm's accountant explained that the company paid taxes the same way as regular partnerships, by passing the profits through to each partner. Beck could purchase more shares of the company on a public stock exchange, as long as someone was willing to sell his/her shares.

This is a master limited partnership.

8 0
4 years ago
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