In business, there is no distinction between ethics and legality.<br><br> True<br> False

Income statement data for Whirlpool Industries from the company’s 2016 financial statements follow. Use these data to reformulat

Blababa [14]

1. The computation of the adjustments to warranty expense, income tax expense, and net income and the reformulation of the income statement for 2014, 2015, and 2016 for Whirlpool Industries are as follows:

12 Months Ended ($ millions) Dec. 31, 2016 Dec. 31, 2015 Dec. 31, 2014

Net sales $23,928 $24,101 $23,082

Warranty expense 366 610 372

Taxable income $23,562 $23,491 $22,710

Tax expenses (30%) $7,069 $7,047 $6,813

Net income $16,493 $16,444 $15,897

2. The computation of the average warranty expense to net sales rate over the past three years is as follows:

12 Months Ended ($ millions) Dec. 31, 2016 Dec. 31, 2015 Dec. 31, 2014

Net sales $23,928 $24,101 $23,082

Warranty expense 366 610 372

Warranty expenses to

net sales rate 1.5296% 2.5310% 1.6116%

Average warranty expenses to net sales rate = 1.89% (5.6722/3)

<h3>Data and Calculations:</h3>

12 Months Ended ($ millions) Dec. 31, 2016 Dec. 31, 2015 Dec. 31, 2014

Net sales $23,928 $24,101 $23,082

Warranty expense 366 610 372

Warranty expenses to

net sales rate 1.5296% 2.5310% 1.6116%

Average warranty expenses to net sales rate = 1.89% (5.6722/3)

Thus, the average warranty expense to net sales rate over the past three years is <u>1.89%</u>.

Learn more about preparing income statements at brainly.com/question/24498019

3 0

2 years ago

Sage Company borrowed $3,000,000 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the

valina [46]

Question:

Riverbed Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $5,400,000 on March 1, $3,600,000 on June 1, and $9,000,000 on December 31. Riverbed Company borrowed $3,000,000 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 5-year, $6,000,000 note payable and an 11%, 4-year, $10,500,000 note payable. Compute avoidable interest for Riverbed Company. Use the weighted-average interest rate for interest capitalization purposes.

Answer:

The total avoidable interest is $743,040.00

Explanation:

Here we have

Date Expenditure Period Portion

Mar-01 $5,400,000.00 10/12 $4,500,000.00

Jun-01 $3,600,000 7/12 $2,100,000

Dec-31 $9,000,000 0/12 $0

Total $6,600,000.00

The weighted average expenditure is $6,600,000.00

The weighted average rate using the notes payable loan is found by the following calculation

Type of loan Amount Interest rate Interest incurred

Loan $6,000,000 10% $600,000.0

Loan $10,500,000 11% $1,155,000.00

Total $16,500,000 $1,755,000.0

Weighted average rate = Total interest incurred / Total loans

Weighted average = 1755000/16500000 = 0.10636 = 10.64%

The general interest is found by subtracting the specific loan from the weighted average expenditure

General = Weighted average expenditure - Specific loan

General = $6,600,000.00 - $3,000,000 = $3,600,000.00

The avoidable interest is found by summing the specific interest to the weighted average interest as follows

Type of loan Amount Interest rate Interest incurred

Specific $3,000,000 12% $360,000.00

General $3,600,000 10.64% $383,040.0000

Total $743,040.00

The total avoidable interest = $743,040.00

5 0

3 years ago

You decide to incorporate your bracelet business and get your mother and brother involved in the corporation. Your executive com

Alex_Xolod [135]

False. Not every member of the board of directors is liable personally for the lawsuit. The business owner is the one who is held responsible and liable personally for the lawsuit. Though, the lawsuit typically hurts everyone involved depending on the depth of it because it could lead to company shut down which could cause many people to lose their lives.

5 0

3 years ago

What is the difference between a demand curve and a demand schedule?

svetlana [45]

Answer:

Demand schedule:

The Demand schedule refers to the tabular representation of the quantity demanded at the various price levels. By observing the demand schedule, we can conclude that as the price of the good increases then as a result the quantity demanded for that good falls. It represents various combination of price and quantity demanded.

Demand curve:

A demand curve refers to the graphical representation of the demand schedule which shows the relationship between the price of the commodity and the quantity demanded for that commodity. It is downward sloping curve which shows that there is an inverse relationship between the price of a good and the quantity demanded.

5 0

3 years ago

Which of the following statements is CORRECT? Sole proprietorships are subject to more regulations than corporations. In any typ

Rasek [7]

Answer:

Sole proprietorship and partnerships generally have a tax advantage over many corporations, especially large ones.

Explanation:

Corporation face fewer regulations than Sole proprietorship.

In any partnership every partner is liable for their share of rights, privileges, and liability exposure.

An S Corp and C Corp are not taxed the same.

3 0

3 years ago

In business, there is no distinction between ethics and legality. True False