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liubo4ka [24]
3 years ago
12

You have been given the following information for Nicole's Neckties Corp.: Net sales = $2,500,000; Cost of goods sold = $1,300,0

00; Addition to retained earnings = $30,000; Dividends paid to preferred and common stockholders = $300,000; Interest expense = $50,000. The firm's tax rate is 40 percent. What is the depreciation expense for Nicole's Neckties Corp.?
Business
1 answer:
Finger [1]3 years ago
6 0

Answer:

$360,000

Explanation:

Net sales :                 $2,500,000

Cost of goods sold :  ($1,300,000)

Gross profit :              $ 1,200,000

Interest expense :          ($50,000)

Net profit :                  $ 1, 150,000

Retained earning:         ($30,000)

Dividends paid :           ($300,000)

Tax at 40%: =40% * $1,150,000

                                      ($460,000)

Depreciation expense : $360,000

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On January 1, 2011, Deuce Inc. acquired 15% of Wiz Co.'s outstanding common stock for $62,400 and categorized the investment as
cricket20 [7]

Answer:

$30,000

Explanation:

Calculation for the amount of equity income to reported

Using this formula

Equity income=[(Amount earned in 2012×(Outstanding common stock percentage +Additional percentage of Wiz)]

Let plug in the formula

Equity income = [($120,000 ×(15%+ 10%)]

Equity income = ($120,000 ×25%)

Equity income= $30,000

Therefore the amount of equity income to reported for 2012 will be $30,000

6 0
3 years ago
From the income statement, the corporation had a net income of $724 million for the year. Total dividends were $106 million. The
Elis [28]

Answer:

the earnings per share is $1.81 .

Explanation:

<em>Earnings per Share = Earnings Attributable to Holders of Common Stock ÷ Weighted Average Number of Common Stocks Outstanding</em>

Therefore,

Earnings per Share = $724,000,000 ÷ 400,000,000

                                 = $1.81

5 0
3 years ago
Tessler farms has a return on equity of 11.28 percent, a debt-equity ratio of 1.03, and a total asset turnover of .87. what is t
Digiron [165]
<span>Return on equity = 11.28 percent = 11.28/100 = 0.1128
debt-equity ratio =1.03
total asset turnover = 0.87
return on assets = ?
we can find return on assets by using the formula
= return on equity / (1 + debt equity ratio)
= 0.1128 / (1 + 1.03)
= 0.1128 / 2.03
= 0.0556 = 0.0556 x 100 = 5.56%
So, the return on assets is 5.56%</span>
8 0
3 years ago
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Troyanec [42]

Answer: Savings account

Explanation:

5 0
3 years ago
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zimovet [89]

Answer:  Offering recipients of unemployment insurance benefits a cash bonus if they find a new job within a specified number of weeks

Explanation:

The type of unemployment is not given but the above option is the only one that can reduce unemployment out of the options given.

People who recently lost their jobs and are on Unemployment insurance might find that their motivation to look for a job is not as strong as it should be because they are still receiving a paycheck at the end of the month. It will therefore most likely take them longer to find a job than necessary because they simply aren't looking hard enough.

If the Government stepped in and offered them a cash incentive to find a job quicker, this can have the effect of reducing unemployment by giving those people who were just mentioned renewed motivation to look for employment rather than just remain on Unemployment insurance.

3 0
4 years ago
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