Answer:
$121
Explanation:
Change in net working capital is calculated as ; Working capital(Current year) minus Working capital (Previous year)
Since we are considering 2019,
•Current assets in 2018 = Cash + accounts receivable + inventory
= 190 + 684 + 918
= $1,792
•Current liabilities in 2018 = Accounts payable + notes payable
= $788 + $306
= $1,094
Working capital(previous year)
= $1,792 - $1,094
= $698
•Current assets in 2019 = Cash + Accounts receivable + inventory
= 190 + 726 + 1,023
= $1,939
•Current liabilities in 2019 = Accounts payable + notes payable
= 818 + 302
= $1,120
Working capital(current year)
= $1,939 - $1,120
= $819
Therefore,
Changes in net working capital
= $819 - $698
= $121
Answer:
$4,300
Explanation:
Since the call expired, the $500 premium must be reported as a short term capital gain. Short term capital gains are taxed in the periods that they occur, so they do not affect the basis of the stocks. It is something similar to dividends, if you receive dividends they will be taxed as short term gains = ordinary income, bu they do not affect the stocks' basis.
Answer:
King = 29260
Boxer = 183740
Explanation:
The Distribution of Net income will be as follows.
Net Income $213000
<u>Less: Interest on Capital</u>
King 3000
Boxer <u>5550</u> (8550)
<u>Less: Salary</u>
Boxer <u>(125670)</u>
Residual Profit 78780
<u>Share of Profit</u>
King [78780 * 1/3] 26260
Boxer [78780 * 2/3] <u>52520</u>
<u />
King = 3000 + 26260 = 29260
Boxer = 5550 + 125670 + 52520 = 183740
Answer:
$304,500
Explanation:
Interest payable on December 31, year 1 = $290,000 * 5%
Interest payable on December 31, year 1 = $14,500
Total amount of liabilities to be reported on the Balance Sheet, year 1:
= $290,000 + $14,500
= $304,500
So, the total amount of liabilities related to these bonds that will be reported on the balance sheet at December 31, Year 1 is $304,500.
Answer:
Current Liabilities
Federal Income Taxes Payable $336,000
Advances on Magazine Subscriptions $1,593,750
Total Current Liabilities $1,929,750
Explanation:
Federal Income Taxes Payable
This is a current Liability as it falls under a period of a year. As March ends the first quarter, the quarterly tax is;
= 840,000 x 40%
= $336,000
Advances on Magazine Subscriptions
They are to deliver monthly subscriptions for 12 months to the tune of 25,000 copies which they have already been paid for. Under the Accrual system they cannot recognize this as revenue until they have fulfilled their obligation to deliver the magazines and until then, they are current Liabilities. As of end of March, they have fulfilled their obligations for 3 months leaving 9 in the year.
= 25,000 x $85 x 9/12
=$1,593,750
