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n200080 [17]
3 years ago
11

[The following information applies to the questions displayed below.] The following information was reported in the December 31,

2017, financial statements of National Airways, Inc. (listed alphabetically, amounts in millions). Accounts Payable $ 4,315 Accounts Receivable 660 Aircraft Fuel Expense 9,500 Cash 3,050 Common Stock 1,260 Dividends 35 Equipment 15,330 Income Tax Expense 270 Interest Expense 210 Landing Fees Expense 3,900 Notes Payable 6,990 Repairs and Maintenance Expense 2,000 Retained Earnings (as of December 31, 2017) 7,195 Salaries and Wages Expense 3,400 Supplies 720 Ticket Revenues 21,100 Prepare an income statement for the year ended December 31, 2017. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10.).)

Business
1 answer:
asambeis [7]3 years ago
6 0

Answer:

Explanation:

Before preparing the income statement, first, we have to compute the net income or net loss. So, the calculation is shown below:

In the simplest form, the net income = Total revenue - total expenses

= Ticket Revenue - aircraft fuel expense - income tax expense - interest expense - Repairs and Maintenance Expense - Salaries and Wages Expense - Landing Fees Expense

= $21,100 - $9,500 - $270 - $210 - $2,000 - $3,400 - $3,900

= $1,820

The preparation of the income statement is presented in the spreadsheet. Kindly find the attachment below:

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Westford Corporation has $185 million dollars of interest-bearing debt outstanding at the end of fiscal 2014 year. In addition,
Ratling [72]

Answer:

B) 9.1%

Explanation:

Cost of debt is the interest rate paid by a company due to borrowing money; i.e  debt from investors.

$185million in debt is the face value of debt that Westford Corporation had and the $26 million dollars of interest expense is the cost of the debt in dollars;

First, find pretax cost of debt ;

Pretax cost of debt = (Interest expense / Face value of debt )*100

= (26,000,000/ 185,000,000 )*100

=0.1405 *100

= 14.05%

Next, use pretax cost of debt to find after-tax cost of debt;

After-tax cost of debt = Pretax cost of debt (1-tax)

= 14.05% *(1-0.35)

= 9.13%

Therefore, Westford's cost of debt capital is 9.1%

6 0
3 years ago
Upon graduating from college, you make an annual salary of $58,381. You set a goal to double it in the future. If your salary in
Fynjy0 [20]

Answer: 9.20

Explanation:

In finance there is a rule for calculating this called 'The Rule of 70'.

With The Rule of 70, you are able to calculate the amount of time it will take an investment to double if you divide 70 by the growth rate of the investment.

In this scenario, the investment is your salary and the growth rate is 7.61% pee year.

The amount of time it will take to double is therefore,

= 70 / 7.61

= 9.19842312746

= 9.20 years.

It will take 9.20 years to double.

7 0
3 years ago
On January 1, 2017, the merchandise inventory of Glaus, Inc. was $1,600,000. During 2017 Glaus purchased $3,200,000 of merchandi
valentinak56 [21]

Answer: $1,800,000

Explanation:

The merchandise inventory of Glaus at December 31, 2017 will be:

Begining Inventory = $1,600,000

Add: Purchases = $3,200,000

Less: Cost of goods sold = $4,000,000

Add: Gross profit = 25% × $4,000,000 = $1,000,000

Ending Inventory = $1,800,000

The answer is $1,800,000.

8 0
3 years ago
Holly created a saving and investing plan over twelve years ago. She has not looked at it or made any changes to it. What saving
Tpy6a [65]
Continually reassess your plan. As part of the investment process and financial planning process, Holly should monitor and reassess her savings and investing plan annually to determine if her goals have changed and if she is meeting her goals through the plan's performance. 
4 0
3 years ago
What is the major determinant of supply? 
Lorico [155]
The available demand and goods
4 0
3 years ago
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