Does anybody know xxalvinaa

Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current

olga2289 [7]

Answer:

$272,000

Explanation:

The qualified business income of Robert is $272,000 as the Robert salary of $81,600 is already deducted from the net income .

4 0

3 years ago

Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $80 per unit. Variable expenses are $40.00 per

Blizzard [7]

Answer:

a. Degree of operating leverage is 1.23; and Percentage increase in net income is 23.37%.

b. Therefore, this year's net operating income would be $636,000 if the sales manager's ideas are implemented.

Explanation:

a. Assume the president expects this year's sales to increase by 19%. Using the degree of operating leverage from last year, what percentage increase in net operating income will the company realize this year?

The degree of operating leverage (DOL) refers to a metric used to gauge the amount by which the operating income of a firm will change as a result of a change in its sales. DOL can be calculated as follows:

Degree of operating leverage = contribution margin / net income = 960,000 / 780,000 = 1.23

From the DOL, the percentage increase in net income can can be determined as follows:

Percentage increase in net income = Degree of operating leverage * Expected percentage increase in net income = 1.23 * 19% = 23.37%

b. If the sales manager is right, what would be this year's net operating income if his ideas are implemented?

Note: This required part b is not complete. The complete requirement is therefore presented as follows:

The sales manager is convinced that a 13% reduction in the selling price, combined with a $72,000 increase in advertising, would increase this year's unit sales by 25%. If the sales manager is right, what would be this year's net operating income if his ideas are implemented?

The answer to par b is now provided as follows:

Initial sales in unit = Initial sales / Initial selling price = $1,920,000 / $80 = 24,000 units

This year's sales in unit = Initial sales in unit * (100% + percentage increase in sales) = 24,000 * 125% = 30,000 units

This year's sales = This year's sales in unit * [Old selling price * (100% - expected percentage fall in selling price)] = 30,000 * [$80 * (100% - 13%)] = $2,088,000

This year's operating income can now be determined as follows:

Feather Friends, Inc.

Income Statement (Variable Costing)

For this year

Particulars Amount ($)

Sales 2,088,000

Variable expense (30,000 * $40) (1,200,000)

Contribution margin 888,000

Fixed expense (180,000 + 72,000) (252,000)

Net operating income  636,000 

Therefore, this year's net operating income would be $636,000 if the sales manager's ideas are implemented.

5 0

3 years ago

Suppose that on January 6, 2018, Excel Motors paid $240,000,000 for its 45% investment in Dynamic Motors. Excel has significant

goldenfox [79]

Answer:

Requirement 1 :

Excel Motors should use the Equity method to account for its investment in Dynamic Motors, because the investment results in significant influence over the invested company.

Requirement 2 :

In the books of Excel Motors:

[ Kindly find the attachment ]