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wariber [46]
3 years ago
12

Suppose Ningbo Steel had sales revenue of $11,000 sales revenue, cost of goods sold of $5,000, operating expenses of $3000, inte

rest expense of $1,000, a tax rate of 20%, and 1,000 shares of common stock outstanding. Based on this information, net profit after tax was:_________.
A. $1,600
B. $500
C. $1,000
D. $0
Business
1 answer:
Anon25 [30]3 years ago
6 0

Answer:

A. $1,600

Explanation:

                               Ningbo Steel

                           Income Statement

Sales Revenue                                   $11,000

Less Cost of goods sold                    <u>$5,000 </u>

Gross Profit                                         $6,000

Less Operating Expense                    <u>$3,000 </u>

Earning Before Interest and Taxes    $3,000  

Less Interest Expense                         <u>$1,000</u>

Earning before Tax                              $2,000  

Less Tax Expenses (2,000 *20%)       <u>$400</u>

Net Profit after tax                              <u>$1,600</u>

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3 years ago
The recording of the factory labor incurred for general factory use would include a debit to:
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What are some of the primary reasons a company decides to expand internationally? Identify a company in the news that has recent
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Answer:

Primary reasons a company would decide to expand internationally are as follows:  

  • Expanding markets and increasing sales are one of the primary reasons.
  • Companies get globalized in order to become a market leader.
  • The company may choose to enter into international market in order to diversify a company's product line.
  • Markets and investments would be protected by companies once they enter into international market and get engaged in an international business.
  • Controlling the expenses is again one of the most important reasons. Company would buy the resources to gain cost advantage.
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The three motivational factors that induce a company to go global are as follows:

  • Economies of Scale — The advantage that a company gain through mass production to achieve the lowest possible production cost per unit.
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Jaguar Land Rover decided to manufacture cars outside the UK for the first time. In recent years, it has rapidly expanded in its home UK and the company is planning to go to Brazil and implement the strategies that they had implemented in India.

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3 0
2 years ago
Your investment has a 20% chance of earning a 30% rate of return, a 50% chance of earning a 10% rate of return, and a 30% chance
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The social insurance taxes will be tax rate (6.2%) of gross income amount of  $58,000 which is calculated using this formula

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Social security  tax rate=6.2%

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