What is leadership management

The Saturn Company records all collections from customers (including 5% sales tax) in the Sales Revenue Account. The account bal

iris [78.8K]

Answer:

$5,000

Explanation:

Calculation for what the Sales Tax Payable will be:

Sales Tax Payable=5% sales tax*Account balance $100,000

Sales Tax Payable=$5,000

Therefore the Sales Tax Payable will be: $5,000

8 0

2 years ago

One reason many companies do not organize themselves as an s corporation is that this form of business:

S_A_V [24]

Answer:

S type corporation is difficult to register as it has a particular eligibility restriction, which many businesses are unable to meet.

Explanation:

There are specific pre-requisites before a company may apply as an S corporation

It implies that corporation shareholders must be U.S. residents only who directly own the shares.
Maximum 100 shareholders can be part of S corporation.
The stock options are restricted to one class only.

The limited stock options, no foreign investment challenges and limitation of maximum shareholders create a barrier to open S type corporation. So the answer is S type corporation is difficult to register as it has a particular eligibility restriction, which many businesses are unable to meet.

7 0

3 years ago

Which of the following is a tangible incentive for good team performance?

shepuryov [24]

Answer:

Option A an early lunch is your answer ☺️☺️

5 0

2 years ago

Assume that today is December 31, 2019, and that the following information applies to Abner Airlines: After-tax operating income

melamori03 [73]

Answer:

The company's stock price today should be $71.17 per share.

Explanation:

The corporate valuation model approach can be used to estimate this by using the following steps:

Step 1: Calculation of the free cash flow

Free cash flow is the cash a firm generates after accounting for capital expenditure. This can be estimated using the following formula:

Free Cash Flow (FCF) = After-tax operating income + Depreciation expenses - Capital expenditure

For this question, we therefore have:

Free Cash Flow (FCF) = $700 + $150 - $375 = $475 million

Step 2: Calculation of Value of operations (Vo)

Vo = FCF / (WACC - FCF growth rate) = 475 / (11% - 7%) = $11,875 million

Step 3: Calculation of the Firm value

Firm value = Vo + Non-operating assets = $11,875 + $199 = $12,074 million

Step 4: Calculation of value of equity

Value of equity = Firm value - Debt = $12,074 - $3,534 = $8,540 million

Note: The correct amount of debt is $3,534 not $3.540 as mistakenly given, may be due to typographical error, in the question.

Step 5: Calculation of stock price per share today

Stock price per share = Value of equity / Number of shares outstanding = $8,540 / 120 = $71.17 per share

Therefore, the company's stock price today should be $71.17 per share.

7 0

3 years ago

Billings Company has the following information available for September 2017.

kumpel [21]

Answer:

Part a

Contribution Margin = 29.95% (2 d.p)

Part b

Billing Company

CVP Income for as at September 2017

Total Per Unit

$ $

Sales 295704 444

Less Variable Costs (138084) (311)

Contribution 157620 133

Fixed Costs (59850) 89.86

Net Income 97770 43.14

Part c

Billing`s break even point is 450 units

Part d

Billing Company

CVP Income for as at September 2017 - Break Even Point

Total Per Unit

$ $

Sales 199800 444

Less Variable Costs (139950) (311)

Contribution 59850 133

Fixed Costs (59850) 133

Net Income 0 0

Explanation:

Part a

Contribution Margin = Contribution/Sales × 100

Therefore contribution margin is ($444-$311)/$444 * 100 = 29.95% (2 d.p)

Part b

Sales - Variable Cost = Contribution

Net Income = Contribution - Total Fixed Costs

Part c

Break Even Point is when Billings neither makers a profit or loss.

Break Even Point ( Units) = Total Fixed Cost/Contribution per unit

Therefore Break Even Point (Units) = $59850/$133 = 450 units

Part d

The total and unit CVP should neither reflect a profit or loss at a capacity of 450 units as this is the break even point. In this case profit = nill

7 0

3 years ago