1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Sloan [31]
3 years ago
8

During the fiscal year, a company had revenues of $400,000, cost of goods sold of $280,000, and an income tax rate of 30 percent

on income before income taxes. What was the company's net income for the year
Business
1 answer:
tatiyna3 years ago
8 0

Answer:

$84,000

Explanation:

A company's net income can be determined by subtracting the cost of goods sold from the revenues to obtain the income before taxes and then multiply it by one minus the tax rate.

If revenues are $400,000 and cost of goods sold are $280,000 at a tax rate of 30%, net income for the year is:

N=(\$400,00-\$280,000)*(1-0.3)\\N=\$84,000

The company's net income for the year is $84,000.

You might be interested in
15 Bookmark this question Arp Corp.'s outstanding capital stock at December 15, year 1, consisted of the following: 30,000 share
AysviL [449]

Answer:

$85,000

Explanation:

If there are any dividends declared in a company having preference capital, then firstly dividend will be paid to preference capital at the rate specified as that is the minimum rate.

Here preference capital = $10 \times 30,000 = $300,000

Dividend = 5% = $15,000

Total dividend for the year = $100,000

Equity Dividend = Total - Preference

= $100,000 - $15,000

= $85,000

It is not in the option, therefore all options are incorrect.

5 0
3 years ago
Dartford Company reported the following financial data for one of its divisions for the year; average investment center total as
Alexandra [31]

Answer:

$208,000

Explanation:

Calculation for Dartford Company residual income

Using this formula

Residual income=Investment center income -(Target income percentage of average invested assets ×Average investment center total assets)

Let plug in the formula

Residual income =$700,000-(12%×$4,100,000)

Residual income =$700,000 - $492,000

Residual income =$208,000

Therefore The residual income for the division is: $208,000

4 0
3 years ago
A comparative financial statement:
andrew-mc [135]

Answer:

The answer is B

Explanation:

A comparative financial statement compares places two or more years financial statement together in order to compare.

It is always referred to as horizontal analysis because it is the same company and we are only comparing the previous years and the current year result which are placed side by side. Hence, the reason why it is called horizontal analysis.

8 0
3 years ago
Many people love Wal-Mart and Microsoft.  Many people hate these companies and accuse them of acting like monopolies.  What is w
romanna [79]
In recent years Walmart had participated in “lock-ins”, (Walmart also owns sam’s club). Lock-ins lock in employees over night to stock shelves and clean. The doors can only be opened during a fire or when the manager unlocks the door. An employee got injured and couldn’t leave due to fear of losing their job. This is why they refer to Walmart as a monopoly. The government has labor laws in place to prevent poor work conditions like this.
6 0
3 years ago
On June ​1, High Performance Cell Phones sold 19,000 of merchandise to Anthony Trucking Company on account. Anthony fell on hard
Naily [24]

Answer and Explanation:

The Journal entries are shown below:-

1. Anthony Trucking Dr, $19,000

           To Sales A/c $19,000

(Being the sales made is recorded)

2. Bank Dr, $5,000

           To Anthony Trucking $5,000

(Being cash received is recorded)

3. Wrote off A/c Dr, $14,000

              To Anthony Trucking $14,000

(Being Account receivable write off the balance  is recorded)

4. Bank Dr, $14,000

            To Wrote off $14,000

(Being cash received is recorded)

2. High Performance 's direct write-off approach would face drawbacks because it breaches the matching principle. The matching theory involves be matching the spending of uncollectible accounts with the relevant revenues. Here uncollectible amount is treated as a bad debt expense. The written off amount is treated as uncollectible amount by the customer

7 0
3 years ago
Other questions:
  • Rider Company is in the process of preparing it closing entries. It first closes its revenue accounts by crediting the Income Su
    11·1 answer
  • _____ means "let the buyer beware" is a philosophy sometimes used by businesses to put the burden for consumer protection onto t
    8·1 answer
  • Although you are really tired after a long run, you are considering meeting a friend at the local track to run a few more miles.
    6·1 answer
  • You are one of nine partners of MobileWorks, a partnership organized to manufacture and sell mobile networking devices. You rece
    10·1 answer
  • Which method of payment actually is a form of borrowing money that needs to be paid back later
    9·1 answer
  • Baker Company owns 15% of the common stock of Charlie Corporation and used the fair-value method to account for this investment.
    15·1 answer
  • Sales Mix and Break-Even Analysis Michael Company has fixed costs of $2,313,840. The unit selling price, variable cost per unit,
    13·1 answer
  • How free maket economy operates
    9·1 answer
  • Which of the following will be accomplished by efficient allocations of the factors of production?
    10·2 answers
  • Macroeconomics, as opposed to microeconomics, includes the study of what determines the level of:___________
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!