Answer:
Big Tommy Corporation
Profit and Loss for the year ended December 31
Sales 404,000
Cost of Goods Sold 279,000
Gross Profit 125,000
<em>Operating Expenses:</em>
Salaries and Wages Expense 58,000
Office Expenses 16,000
Travel Expenses 1,000 75,000
Operating Income: 50,000
Non-Operating Expenses
Income Tax Expense 15,000 15,000
Net Income 35,000
Explanation:
Multistep income statement makes a clear distinction on Operating Incomes and Expenses and Non-Operating Incomes and Expenses
Operating income is Profit generated from Primary activities of the company
Non-Operating Incomes and Expenses do not relate to the Primary activities of the firm.They occur as a result of secondary activities.
Answer:
There are benefits associated with running a partnership, both when compared to a sole trader and a limited company: Shared responsibility. Having more business owners allows the financial and operational responsibility for running the business to be sharedExplanation: The benefit of a partnership over a sole proprietorship is that you'll share the responsibilities, resources, and losses. On the other hand, you also split your profits, and you might face disagreements over how to run the business. One way to mitigate conflict is to create a partnership agreement.
Answer:
3.20
Explanation:
The computation of the asset turnover ratio is shown below:
Total asset turnover = (Net Sales revenue ÷ Average Total assets)
= ($16,320,000 ÷ $5,100,000)
= 3.20
It shows a ratio between the net sales revenue and the average total assets.
All other information which is given is not relevant. Hence, ignored it
Answer:
Explanation:
e concepts or strategies presented in this class
Answer:
The present value of security is $2300
Explanation:
The value or price of the perpetuity today is calculated by dividing the constant cash flow it provides per period by the interest rate or the rate of return (r). Thus the price of this perpetuity according to the formula will be,
Value of perpetuity = Cash flow / r
Value of perpetuity = 115 / 0.05
Value of perpetuity = $2300
