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3 years ago

Hall Corporation reported the following operating results for two consecutive years.

Business

1 answer:

Strike441 [17]3 years ago

3 0

Answer:

2014 2013 %CHANGE

SALE 1297000 1001000 29.6%

COGS 797655 600600 32.8%

Gross margin 499345 400400 24.7%

operating expenses 302000 198000 52.5%

Income before tax 197345 202400 -2.5%

taxes 61400 52600 16.7%

Net income 135945 149800 -9.2%

Explanation:

%change = (2014 - 2013)/2013

2014 and 2013 represent each line item in the income statement

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Why is the separating of recordkeeping from the custody of assets a limitation of an internal control system?

yanalaym [24]

The separating of recordkeeping from the custody of assets a limitation of an internal control system because:

In example above, fraud could occur only if the two employees collude (agree to work together to commit fraud)
Employee maintaining accounting records has no incentive to falsify records.
Employee controlling asset will know if another person is maintaining records or not.
The employee who controls/has access to an asset should not maintain that asset's accounting records.

<h3>What is meant by Internal Control?</h3>

Internal controls are the mechanisms, rules, and procedures implemented by a corporation to ensure the integrity of financial and accounting information, promote accountability, and stop fraud.
Internal controls can help improve operational efficiency by improving the accuracy and timeliness of financial reporting, besides complying with laws and regulations and preventing employees from stealing assets or committing fraud.

To learn more about asset's accounting records: brainly.com/question/24012821

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2 years ago

What two possible reasons could cause the required return to differ from the coupon interest rate? (Select the best answer be

mixas84 [53]

Answer:

A. Cost of funds has changed

B. Firm's risk has changed

Explanation:

The required rate of return on bonds refers to an investor's expected rate of return which is based upon rate of return other investors earn in the market on similarly priced bonds. This is also referred to as yield to maturity i.e YTM.

Coupon rate of payment of bond is the interest payment on such bonds which is usually fixed at the time of issue of such bonds.

Required rate of return may differ on account of change in cost of funds to the issuer which is cost of debt denoted as $K_{d}$ . Cost of debt is determined by tax rate and net proceeds from the issue of such bonds.

Required rate of return may also change on account of change in the firm's risk. If the firm assumes more risk, such risk would deter investors from investing in such bonds and in such scenario, the firm has to offer higher coupon rate than the rate prevailing in the market to attract the investors.

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3 years ago

What does deficit spending require a government to do?

Kruka [31]

Answer:

c. TAKE ON DEBT

Explanation:

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3 years ago

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This year, Paula and Simon (married filing jointly) estimate that their tax liability will be $218,000. Last year, their total t

romanna [79]

Answer:

1. Yes

2. $7,400

Explanation:

Basic Rules For Estimated Tax For Individuals

Any individual who has estimated tax for the year of $1,000 or more and whose withholding does not equal or exceed the “required annual payment” must make quarterly payments. Otherwise, a penalty may be assessed. The required annual payment is the smaller of the following amounts:

1.Ninety percent of the tax shown on the current year's return.

2.One hundred percent of the tax shown on the preceding year's return (the return must cover the full 12 months of the preceding year). If the AGI on the preceding year's return exceeds $150,000 ($75,000 if married filing separately), the 100% requirement is increased to 110%.

Are Paula and Simon required to increase their withholdings or make estimated tax payments this year to avoid the underpayment penalty?

Following the basic rules above, yes, Paula and Simon have to increase their withholdings or make estimated tax payments this year to avoid the underpayment penalty.

If so, how much?

Amount of income tax liability = $218,000

In general, taxpayers must pay at least 90 percent of their tax bill during the year to avoid an underpayment penalty when they file.

Therefore Minimum estimated payments-90% : $218,000 * 0.9 = $196,200

110% of the preceding year's tax: $182,000 * 1.10 = $200,200

According to the basic rules the required annual payment is the smaller which is $196,200.

Tax withholding from their employers = $188,800

Estimated tax payments required = $196,200 - $188,800 = $7,400

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3 years ago

Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $2,800 account of a customer

laila [671]

Explanation:

The Journal entry is shown below:-

On Jan 31

Allowance for doubtful accounts $2,800

To Accounts receivable - C. Green $2,800

(Being the uncollectible amount is recorded)

Mar 09

Accounts receivable - C. Green $2,300

To Allowance for doubtful accounts $2,300

(Being the written off amount is recorded

Mar 09

Cash $2,300

To Accounts receivable - C. Green $2,300

(Being the payment is received is recorded)

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3 years ago

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