Answer:
The answer is B.
Explanation:
Gross profit is the difference between a company's net sales or total revenue and cost of sales or cost of goods sales.
Sales revenue is $433,000
Cost of Goods Sold is $240,000
Remember that Gross profit is Sales revenue - cost of goods sold.
Sales revenue----------------------------$433,000
Minus: Cost of Goods Sold----------$240,000
Gross profit--------------------------------<u>$193,000</u>
Answer:
Telecommuting.
Explanation:
This is a flexible work pattern in which employees are allowed to carry out their tasks from homes or other various locations outside the principal office .
It does not mean a total cut off from the office as occasional appearance and constant communication is required .
It has its advantages in improved moral , retaining best hands , increased productivity and cost savings.
The disadvantages include lack of supervision ,isolation and in - effective use of work hours
Answer:
1. $34 million
2. $0
Explanation:
Given that,
Fair value of Centerpoint Inc = $256 million
Book value of Centerpoint's net assets (excluding goodwill) = $228 million
Book value of Centerpoint's net assets (including goodwill) = 290 million
1. Actual Value of Goodwill:
= Fair Value of Centrepoint Inc. - Book Value of Net assets (excluding goodwill)
= $256 million - 228 million
= $28 million
Loss on Impairment of Goodwill:
= Goodwill recorded - Actual value of goodwill
= $62 million - $28 million
= $34 million
2. In this case Fair value of ($318 million) is more than Book value ($290 million) then there will be no Impairment Loss.
It means that the loss on Impairment of Goodwill = $0.
Answer: 8.45%
Explanation:
From the question, we are informed that Holmes Company's currently has an outstanding bonds and has a 8% coupon and a 13% yield to maturity.
We are further told that Holmes believes it could issue new bonds at par that would provide a similar yield to maturity and that its marginal tax rate is 35%.
Holmes's after-tax cost of debt will therefore be calculated as:
= Yield to maturity × (1 - Marginal tax rate)
= 13% × (1 - 35%)
= 13% × (65%)
= 0.13 × 0.65
= 0.0845
= 8.45%
