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Gala2k [10]
3 years ago
8

Garcia Company reports the following information: Net operating income after taxes $100,000 Before-tax operating income $300,000

Average invested capital $500,000 After-tax cost of capital 10% What is the residual income for Garcia Company? A) $30,000 B) $50,000 C) $250,000 D) $450,000
Business
1 answer:
Andrew [12]3 years ago
7 0

Answer:

B) $50,000

Explanation:

Cost of Capital is the rate which is required by the capital investment by the shareholders or owners of the business. Residual Income is the portion of net income after paying the investors of the company. This income is reinvested or retained by the business.

Net operating Income after tax = $100,000

Average Invested Capital = $500,000

Cost of Capital = $500,000 x 10% = $50,000

Residual Income = Net Income - Cost of capital

Residual Income = $100,000 - $50,000

Residual Income = $50,000

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Billy Thornton borrowed $140,000 at a rate of 7.25%, simple interest, with interest paid at the end of each month. The bank uses
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Answer:

$845.83

Explanation:

The computation of the interest is shown below:

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3 0
3 years ago
EA4.
boyakko [2]

Answer:

Explanation:

There is the relation between the variable cost and the product cost & fixed cost and the period cost

The product cost is that cost which is used to make the product. It includes direct material, direct labor, and the manufacturing overhead

In mathematically,

Product cost = Direct material + direct labor +  manufacturing overhead

The period cost is that cost which remain fixed and is incurred when the time passes

Period cost = Salaries of sales person + delivery trucks depreciation + Repairs to office equipment + Advertising expense + usage of office supplies expense

So, the categorization is shown below:

Lumber used to construct decks ($12.00 per square foot)  = Variable cost and Product cost

Carpenter labor used to construct decks ($10 per hour)  = Variable cost and Product cost

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Selling and administrative expenses ($35,000 per year)  =  Fixed cost and the period cost

Rent on corporate office space ($34,000 per year)  =  Fixed cost and the period cost

Nails, glue, and other materials required to construct deck (varies per job) =

Variable cost and Product cost

3 0
3 years ago
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In 2022, Denise has two children who are qualifying persons for the child and dependent care credit, Ethan and Jeffrey. Ethan has $9,000 in dependent care expenses, and Jeffrey has none. assuming all other tests are met, up to $8,000 of expenses is credited based on.

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The child and dependent care credit aid you in paying for the upkeep of any dependents that qualify (aka "qualifying persons").

Your income and a portion of the costs you expend for the care of a qualifying individual while you work or look for a job are used to determine how much of a credit you are eligible for.

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A real estate broker has a computerized loan origination (CLO) terminal in her office. Because there are more than a dozen lendi
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