Answer:
(A) Income statemnt for year ended 2XX9
sales 397,000
COGS (115,000)
gross profit 282,000
operating expenses (125,000)
income before taxes 157,000
income tax expense (53,380) <em>34% of 157,000</em>
Net Income 103,620
(B) Profit Margin 26.10%
(C) non-sufficent information
Explanation:
(A)
the dividends and retained earnings are not part of the income statment.
(B)
profit margin:
net income / sales = 103,620/397,000 = 0.261007556 = 26.10%
(C) non-sufficent information
Answer:
$1,290
Explanation:
The work in process inventory account balance is given by the sum of the direct material cost, direct labor cost and the amount of applied overhead.
If the balance is $3,850, with material cost of $1,790 and direct labor cost of $770, the applied overhead is:
The amount of the applied overhead is $1,290.
Answer:
The answer is: 7% annual growth rate
Explanation:
The Rule of 70 is a way to determine how many years it will take an economy to double its GDP (or GDP per capita) with a given annual growth rate.
The formula used by the Rule of 70 is:
number of years = <u> 70 </u>
to double an economy annual percentage growth rate
In this exercise we substitute the known variables and calculate:
10 years = 70 / (annual growth rate)
annual growth rate = 70 / 10 = 7%
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Answer:
the after-tax cost of debt is: 27,090
Explanation:
assuming the entire among of the consulting services is tax deductible
we can determinate the after-tax cost as:
expense x (1 - tax rate) =
43,000 x (1 - 0.37) = <em>27,090</em>
<em />
<em>the rate of return of a potential investment is not relevant for this purpose as is paying right away and not giving time to invest in a project to pay the amount next year.</em>