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Verizon [17]
3 years ago
15

Selma owns a roofing business. She enjoys being her own boss, but her satisfaction comes at a price. Her days are filled with or

ganizing the activities of her employees and soliciting new customers. She often misses activities with friends and family because of the obligations of running her own business. She also knows that she has unlimited personal liability for any of her firm's debts. Selma's business is organized as a(n):A. Joint venture.B. C corporation.C. S corporation.D. Sole proprietorship.
Business
1 answer:
Basile [38]3 years ago
3 0

Answer:

D. Sole proprietorship.

Explanation:

We know it's definitely is a sole proprietorship because of 'unlimited personal liability' which is a key characteristic.

Selma's business is not a joint venture because she is the only person who invested and runs the business whereas a joint venture is created by two or more entities or 'shared ownership'

Nor is it a corporation for this is an 'organization' owned and manned by many people but is regarded as a single entity. Neither is her business an s corporation because that just the same as a corporation but just with different tax regulations.

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Coyne Corporation is evaluating a capital investment opportunity. This project would require an initial investment of $ 39 comma
Genrish500 [490]

Answer:

NPV = $49,234.16

Explanation:

The Net present value (NPV) is the difference between the Present value (PV) of cash inflows and the PV of cash outflows. A positive NPV implies a good investment  project and a negative figure implies the opposite.  

NPV of an investment:  

NPV = PV of Cash inflows - PV of cash outflow  

<em>Present value of cash inflows:</em>

A × 1-(1+r)^(-n)/r

A- annual cash inflow-20,000   r-rate of return-10%, n-number of years-6

PV of cash flow = 20,000 × (1.1)^(-6)/0.1 = 87,105.21399

<em>PV of scrap value</em>

F×  (1+r)^(-n)

F- scrap value

= 2,000× 1.1^(-6)= 1,128.94

Initial cost = $39,000

NPV = 87,105.21399 + 1,128.94 -39,000=   $49,234.16  

NPV = $49,234.16

6 0
3 years ago
Ram Company's after-tax net income was $120. Their interest paid was $50. Assuming the corporate tax is 40%, what is Ram Company
Nataliya [291]

Answer:

5

Explanation:

The formula to compute the interest coverage ratio is shown below:

= (Earning before tax + interest expense) ÷ (interest expense)

where,

Earning before tax equal to

= Net income ÷ (1 - tax rate)

= $120 ÷ (1 - 0.40)

= $200

And interest expense is $50

So, the interest coverage ratio equal to

= ($200 + $50) ÷ ($50)

= 5

4 0
3 years ago
Bluebird, Inc., does not provide its employees with any tax-exempt fringe benefits. The company is considering adopting a hospit
Alexandra [31]

Answer:

a. The Before Tax Compensation for each of the two classes of employees are as follows:

Low (0.15) = $11,635.42

High (0.35) = $14,162.08

b. The Employer's after tax cost of taxable compensation for each of the two classes of employees are as follows:

Low (0.15) = $9,394.15

High (0.35) = $10,775.57

c. The Employer's after tax cost of exempt benefit for each of the two classes of employees are as follows:

Low (0.15) = $6,750

High (0.35) = $6,750

d. The cost in employer's after tax cost of exempt benefit will be less than employer's after tax cost of taxable compensation.

Explanation:

a. How much taxable compensation is the equivalent of $9,000 of exempt compensation for each of the two classes of employees?

Note: See part a of the attached excel file for the calculation of Before Tax Compensation for each of the two classes of employees.

From part a of the attached excel, the Before Tax Compensation for each of the two classes of employees are as follows:

Low (0.15) = $11,635.42

High (0.35) = $14,162.08

b. What is the company’s after-tax cost of the taxable compensation computed in part (a)?

Note: See part b of the attached excel file for the calculation of Employer's after tax cost of taxable compensation.

From part b of the attached excel, the Employer's after tax cost of taxable compensation for each of the two classes of employees are as follows:

Low (0.15) = $9,394.15

High (0.35) = $10,775.57

c. What is the company’s after-tax cost of the exempt compensation?

Note: See part c of the attached excel file for the calculation of Employer's after tax cost of exempt benefit.

From part c of the attached excel, the Employer's after tax cost of exempt benefit for each of the two classes of employees are as follows:

Low (0.15) = $6,750

High (0.35) = $6,750

d. Briefly explain your conclusions from the preceding analysis.

Comparing employer's after tax cost of exempt benefit in comparison and employer's after tax cost of taxable compensation, it can be seen that cost in employer's after tax cost of exempt benefit will be less than employer's after tax cost of taxable compensation.

Download xlsx
5 0
3 years ago
A firm has net income of $197,400, a return on assets of 8.4 percent, and a debt-equity ratio of .72. What is the return on equi
Karolina [17]

Answer:

C 14.45

Explanation:

Return on equity = .084 ×(1 + .72) = .1445, or 14.45 percent

8 0
3 years ago
Which monarch prepares a speech which is broadcasted on Christmas Day?
Galina-37 [17]
Hey stop think go smoke easy up on the pain the smoke a calm u down I'k it's hard but I take them points now thanks
6 0
3 years ago
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