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3 years ago

Preparing budgeted income statement.

Business

1 answer:

Shkiper50 [21]3 years ago

4 0

Answer:

Budgeted net income is $175,630

Explanation:

The budgeted income statement for the year ended 31 December , 2 011 is presented below , starting with the sales budget amount while budgeted costs of good sold and selling and administrative expenses are deducted from sales,

Budgeted sales $1,222,700

costs of goods sold ($727,300)

operating income $495,400

Selling and administrative expenses ($244,500)

Profit before tax $250,900

Taxes($250,900*30%) ($75,270)

net income $175,630

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King Noodles' bonds have a 7.5% coupon rate. Interest is paid quarterly and the bonds mature in 8 years. If the discount rate is

natima [27]

Answer:

The price of King Noodles' bonds is $970.66

Explanation:

Coupon payment = 1000 x 7.5% = $75 per year = 75/4 = 18.75 per quarter

Number of periods = n = 8 years x 4 quarter each year = 32 quarter

Yield to maturity = 8% per year = 8% / 4 = 2% per quarter

Price of bond is the present value of future cash flows, to calculate Price of the bond use following formula:

Price of the Bond = $18.75 x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

Price of the Bond =$18.75 x [ ( 1 - ( 1 + 2% )^-32 ) / 2% ] + [ $1,000 / ( 1 + 2% )^32 ]

Price of the Bond = $18.75 x [ ( 1 - ( 1.02 )^-32 ) / 0.02 ] + [ $1,000 / ( 1.02 )^32 ]

Price of the Bond = $440.03 + $530.63

Price of the Bond = $970.66

3 0

3 years ago

A company paid $517,000 to purchase equipment and $16,700 to have the equipment delivered to and installed in the company's prod

Maslowich

Answer:

Using the units-of-production method, the amount of depreciation expense would the company report in the income statement prepared for the year-ended October 31, 2018 = $ 228899

Explanation:

Given

Acquisition Cost of Equipment = $ 517,000+ $ 16700= $ 533,700

Total units of production= 29,700 hours

Residual Value = $ 6700

Units of Production= 12,900 hours

Formula:

Depreciation per unit= (Cost -Salvage value) / Total units of production* Units of Production

Depreciation per unit= ($ 533,700 - 6700/ 29700)*12900

Depreciation per unit=($ 52,7000 / 29700)*12900

Depreciation per unit=( 17.744)*12900

Depreciation per unit= 228898.98= $ 228899

As units of production are given we do not need to calculate it for half year. The depreciation is calculated for units of production.

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3 years ago

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Leokris [45]

Answer:

a. long-term capital gain.

Explanation:

A 1031 exchange allows investors to delay paying taxes when they swap like-kind properties. The basis of this property will start on January 1, 2019, the date the first property was acquired. If the investor sold the property on February 1, 2020, more than a year passed, so this should be taxed as a long term capital gain.

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3 years ago

Plum Corporation will begin operations on January 1. Earnings for the next five years are projected to be relatively stable at a

Paul [167]

Answer:

Plum Corporation

The best choice is:

B. Assume that Plum will distribute its after-tax earnings each year to its shareholders. Should Plum operate as a C corporation or an S Corporation?

Explanation:

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3 years ago

Which statement is NOT true?

Kisachek [45]

Explanation:

The Answer Is C. That's It

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2 years ago