Answer:
See below
Explanation:
1. The net cash after-tax cash flow effect of the preceding information of using the indirect method.
First, we need to calculate the pretax income.
Pretax income = Sales - Expenses other than depreciation - depreciation expense
Pretax income = $260 - $140 - $50 = $70
Also,
Tax expense = 35% × pretax income $70 = $24.5
Therefore, the indirect method would be;
Pretax income
$70
Less:
Tax expense
($24.5)
After tax income
$45.5
Add:
Depreciation expense
$50
After-tax cash flow
$95.5
Direct method
After tax cash operating income
[($260 - $140 - $50) × (1 - tax rate 35%)]
$45.5
Add :
Depreciation expense
$50
After tax cash flow
$95.5
Answer:
A. select a cell in the data rangeselect the Data tab select “Sort” in the Sort and Filter groupselect the column to be sortedselect an orderclick OK
Explanation:
Answer:
A. $250,800
B. $150,000
Explanation:
a. Calculation for maximum price
First step is to find the Earnings per year amount using this formula
Earnings per year= ROI×Plant and equipment replacement value
Let plug in the formula
Earnings per year=198,000*19%
Earnings per year=37,620
Second step is to calculate for the maximum price using this formula
Maximum price=Earnings per year/ROI
Let plug in the formula
Maximum price=37,620/15%
Maximum price= 250,800
Therefore maximum price is $250,800
b. Based on the information given each of the asset that each individual acquired will be recorded at the market fair value amount while the amount of $150,000 will be recorded as Goodwill.
Using this formula to calculate Goodwill amount
Goodwill =Purchased amount- Fair value
Let plug in the formula
Goodwill=750,000-600,000
Goodwill=$150,000
The answer to this item is letter <em>C. PRICE ELASTIC. </em>
The price elastic demand as stated in this given corresponds to the increase or rise in the total revenue when the price is brought down or decreased. This is indicated by the PED (price elasticity of demand).
The total revenue is calculated by multiplying the total items, good, or services sold by the unit price. For the demand which is price elastic, the decrease in the price will cause a higher raise in the number of customer vying for the products and services.
Answer:
bad debt expense for the year 2016: 11
Explanation:
We can solve for bad debt expense doing the following
beginning allowance
- write-off accounts
+ bad debt expense
Equals to ending allowance
<u>We plug our values: </u>
2016 Beginning allowance 32
(Ending 2015)
write-off (12)
bad debt expense <u> ? </u>
2016 Ending allowance 31
And solve for bad debt expense:
Bad debt expense = 12 + 31 - 32 = 11
