Increasing your 401k deduction will ________ your take-home pay and _________

Smoltz company had $375,000 of current assets and $135,000 of current liabilities before borrowing $90,000 from the bank with a

QveST [7]

The borrowing transaction WILL INCREASE THE WORKING CAPITAL OF SMOLTZ COMPANY BY $90,000.00.
Working capital is defined as the amount of a company's asset that can be converted into cash in the near future, taking into account the payment which has to be made. Borrowing money increases the amount of working capital that a company has.

6 0

4 years ago

At the beginning of the year, SnapIt had $13,800 of inventory. During the year, SnapIt purchased $42,600 of merchandise and sold

qaws [65]

Answer:

Shrinkage = Closing inventory according to the books - Actual closing inventory after physical count

Closing inventory = Beginning inventory + Purchased inventory - Sold inventory

= 13,800 + 42,600 - 35,700

= $20,700

Date Account Title Debit Credit

XX-XX-XXXX Cost of Goods sold $20,700

Merchandise inventory $20,700

3 0

3 years ago

Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The demand for the company's product

Mariana [72]

Answer:

1. $55 per hour

2. $41 per hour

3.Yes

Explanation:

1. Calculation to determine how much of an overtime premium per hour should the company be willing to pay.

Selling price per unit $ 1,750

Less Variable cost per unit ($1,200)

Contribution margin per unit (a) $ 550

Upholstery shop time required to produce one unit (b) 10 hours

Contribution margin per unit of the constrained resource (a) ÷ (b) $55 per hour

($550/10 hours)

Therefore the Maximum overtime premium per hour will be $55 per hour

2. Calculation to determine How much additional contribution margin per hour can Portsmouth earn

First step is to calculate the Contribution margin per unit of the constrained resource

Selling price per unit $ 1,190

Less Variable cost per unit ($850)

Contribution margin per unit (a) $ 340

Upholstery shop time required to produce one unit (b) 4hours

Contribution margin per unit of the constrained resource (a) ÷ (b) $85 per hour

($340/4 hours )

Now let calculate The additional contribution margin per hour earned by hiring the nearby company

Additional contribution margin per hour earned= $85 – $44

Additional contribution margin per hour earned= $41 per hour

Therefore The additional contribution margin per hour earned by hiring the nearby company will be $41 per hour

3. Yes . Portsmouth should hire the nearby upholstering company reason been that Portsmouth will earn an additional contribution margin of $41 per hour by hiring the nearby company

6 0

3 years ago

sugar Skull Corporation uses no debt. The weighted average cost of capital is 8.5 percent. The current market value of the equit

Bess [88]

The value of EBIT in the given question is $399,647,060.

Given, that the weighted average cost of capital = 8.5 percent

Corporate tax rate = 21 percent

The current market value of the equity = $43 million

Using the formula for determining the value of the unlevered firm which is,

Value of unlevered firm = {EBIT(1-t)}/ $k_{e}$ (equation 1)

( where, t = corporate tax rate

$k_{e}$ = weighted average cost of capital )

Now, Substituting the value of corporate tax rate, the value of unlevered firm, and the weighted average cost of capital in equation 1.

$43 million = EBIT {(1-0.21)/0.085} (Since, corporate tax rate and weighted average cost of capital are in percentage to convert them into values we divide them by 100 )

43,000,000 = EBIT * 0.79/0.085

EBIT = 43,000,000 * 0.085/0.79

= 43,000,000 * 9.29411

= 39,96,47,058.8235

= $399,647,060 ( after rounding off to the nearest tens)

Hence, the value of EBIT in the given question is $399,647,060

Learn more about EBIT here:

brainly.com/question/17093104

#SPJ4

7 0

2 years ago

Devon and Kimberly are married and file a joint return. They have scheduled their tax appointment with Andrea, their tax prepare

babymother [125]

Answer:

hiiiiiii

Explanation:

6 0

3 years ago

Increasing your 401k deduction will ________ your take-home pay and __________ your federal taxes in the current year.

Increasing your 401k deduction will your take-home pay and __ your federal taxes in the current year.