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ZanzabumX [31]
3 years ago
11

Rebel Technology maintains its records using cash-basis accounting. During the year, the company received cash from customers, $

43,000, and paid cash for salaries, $23,500. At the beginning of the year, customers owe Rebel $1,000. By the end of the year, customers owe $6,600. At the beginning of the year, Rebel owes salaries of $5,600. At the end of the year, Rebel owes salaries of $3,300. Determine cash-basis net income and accrual-basis net income for the year.
Business
1 answer:
Elden [556K]3 years ago
3 0

Answer:

The cash-basis net income and accrual-basis net income for the year is $19,500 and $22,800 respectively.

Explanation:

The computation is shown below:

1. Net income under cash basis:

= Received cash from customers - paid cash for salaries

= $43,000 - $23,500

= $19,500

2. Net income under accrual basis:

= Cash received - salary paid

where,

Cash received = Cash owed at the end of the year + cash received - cash owed at the beginning of the year

= $6,600 + $43,000 - $1,000

= $48,600

And, the salary paid = salary owed at the end of the year + salary paid - salary owed at the beginning of the year

= $5,600 + $23,500 - $3,300

= $25,800

Now put these values to the above formula  

So, the value would equal to

= $48,600 - $25,800

= $22,800

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A suburban specialty restaurant has developed a single drive-thru window. Customers order, pay, and pick up their food at the sa
andrew11 [14]

Solution :

The average number of the arrivals, λ = 6 per hour

Average service rate, $\mu = \frac{60 \times 2}{15}$

                                      = 8

Average number of the customers in the system is given by,

    $= \frac{\lambda}{\mu - \lambda }$

   $= \frac{6}{8 - 6 }$

  = 3

Average number of the customers that are waiting in the line behind the person who are being served is,

   $=\frac{\left(\frac{\lambda}{\mu}\right)^2}{1-\frac{\lambda}{\mu}} $

  $=\frac{\left(\frac{6}{8}\right)^2}{1-\frac{6}{8}} $

 $=\frac{(0.75)^2 }{0.25} $

  = 2.25

Proportion of the time the server is busy,

    $=\frac{\lambda}{\mu}$

   $=\frac{6}{8}$

   = 0.75

7 0
3 years ago
Describe three different financial decisions and their opportunity costs.
KatRina [158]

Answer:

Going to college has an opportunity cost of not working or working less. Buying a car has an opportunity cost of not being able to save as much. Buying a house could have an opportunity cost of not being able to travel. Opportunity cost is the choice you give up when selecting something else.

Explanation:

8 0
3 years ago
Read 2 more answers
Janice is the sole owner of Catbird Company. In the current year, Catbird had operating income of $100,000, a long-term capital
Ahat [919]

Answer / Explanation:

To answer this question considering the tax entity and how Janice will report this information on her individual tax return, We need to consider the fact that different tax entity are categorized by its unique report and information.

So to properly answer these question, we will have to assume three (3) different scenario which are: (1) Is it a Limited Liability Company, Is it a Small business corporation, Is it an AC Corporation.

We should also note that this segregation is need as each type of corporation tax are dealt with differently thus enabling us treat the question properly in respect to tax entity and as regards to how Janice will report the information on her individual tax return.

Consequentially,

a. If Catbird Company is an LLC: A single-member LLC is taxed as a proprietorship. Thus, Janice will report the $100,000 operating income (Schedule C), $15,000 long-term capital gain (Schedule D), and if she itemizes, $5,000 charitable contribution (Schedule A) on her tax return. The $70,000 withdrawal would have no effect on Janice's individual tax return.

b. If Catbird Company is an S corporation: An S corporation is a tax reporting entity (Form 1120S), and its income, gains, deductions, and losses are passed through to and reported by the shareholders on their tax returns. Separately stated items (e.g., long-term capital gain and charitable contribution) retain their character at the shareholder level. Consequently, Janice will report the $100,000 operating income (Schedule E), $15,000 long-term capital gain (Schedule D), and if she itemizes, $5,000 charitable contribution (Schedule A) on her tax return. The $70,000 withdrawal would have no effect on Janice's individual tax return.

c. If Catbird Company is a C corporation: A C corporation is a separate taxable entity, and its taxable income has no effect on the shareholders until such time a dividend is paid. When dividends are paid, shareholders must report dividend income on their tax returns. Thus, Catbird Company will report taxable income of $110,000 ($100,000 operating income + $15,000 LTCG - $5,000 charitable contribution) on its Form 1120. Corporations receive no preferential tax rate on long-term capital gains. Janice will report dividend income of $70,000 (Schedule B) on her individual tax return.

8 0
3 years ago
Stocks A and B have the following data. The market risk premium is 6.0% and the risk-free rate 6.4%. Assuming the stock market i
scoray [572]

Answer:

Yes, Stock A has higher dividend yield

Explanation:

given data

market risk premium = 6.0%

risk-free rate = 6.4%

                                                       A                                        B

Beta                                                1.10                                    0.90

Constant growth rate                    7 %                                     7%

to find out

does stock A has higher dividend yield than Stock B

solution

we get here Stock A rA = 6.4% + 1.1 × 6%

Stock A rA  = 13.00%

and

Dividend yield of stock A = rA - g

Dividend yield of stock A = 13.00% - 7%

Dividend yield of stock A  = 6%

and

for Stock B rB = 6.4%+ .9 × 6%

Stock B rB = 11.80%

and

Dividend yield of stock B = rA - g

Dividend yield of stock B  = 11.80% - 7%

Dividend yield of stock B = 4.80%

so we can say Yes, Stock A has higher dividend yield

4 0
3 years ago
Action verbs you might use on a job application
kirill [66]
Accomplished, Achieved, Active in, Awarded, Assisted, Broadened, Built, Chaired, Championed, Completed, Delegated, Distinguished, Enacted, Enhanced, Facilitated, Formulated, Graduated, Granted, Handled, Helped, Implemented, Improved, Increased, Initiated, Joined, Kept, Led, Licensed, Managed, Mastered, Navigated, Netted, Obtained, Outlined, Performed, Placed, Qualified, Received, Recorded, Secured, Served, Taught, Trained, Understudied, Undertook, Verified, Volunteered, Widened, Worked.

Hope these help!!!




4 0
3 years ago
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