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ladessa [460]
3 years ago
15

You are given the following information for Bowie Pizza Co.: Sales = $64,000; Costs = $30,700; Addition to retained earnings = $

5,700; Dividends paid = $1,980; Interest expense = $4,400; Tax rate = 22 percent. Calculate the depreciation expense. (Do not round intermediate calculations and round your answer to the nearest dollar.)
Business
1 answer:
pychu [463]3 years ago
7 0

Answer:

$18554

Explanation:

The formula for addition to retained earnings can be used to determine the amount of depreciation expense as shown below:

addition to retained earnings=sales-costs-depreciation expense-interest expense-tax paid-dividends

addition to retained earnings=net income-dividends

5700=net income-1980

net income=5700+1980=7680

if tax 22%,net income is 1-22%=0.78

profit before tax=7680 /0.78= 9,846.15  

tax = 9,846.15*22%= 2,166.15  

using the long formula,we have depreciation expense

5700=64000-30700-depreciation expense-4400-2666.15-1980

depreciation expense=64000-30700-4400-2666.15-1980-5700

depreciatio expense=$18553.85

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Why do nations often impose trade barriers that make it difficult for their own citizens to trade with people in another country
melisa1 [442]

Answer:

The correct answer is d. Trade restrictions often provide benefits to highly visible special interest groups while imposing a less visible cost on the general populace.

Explanation:

A trade restriction is an artificial restriction to the exchange of goods and / or services between two countries. It is the byproduct of protectionism. However, the term is controversial because what a party can see as a trade restriction can be seen as a way to protect consumers from inferior, harmful or dangerous products. For example, Germany demanded that beer production adhere to its purity law. The law, originally implemented in Bavaria in 1516 and eventually converted into a law for the newly unified Germany in 1871, meant that many foreign beers could not be sold in Germany as "beer." This law was annulled in 1987 by the Court of Justice of the European Union, but remains voluntarily followed by many German breweries.

7 0
2 years ago
You have been appointed head of marketing for Barry's Younique Yachts. Barry, the CEO, is interested in determining whether offe
Zielflug [23.3K]

Answer:

that he should reduce his prices. Yachts are luxury goods and therefore exhibit a high price elasticity of demand. Thus, reducing prices would increase revenue.

Explanation:

Luxury goods usually have a high elasticity of demand when compared with necessity goods which are highly inelastic.

An elastic demand means that a change in price would have a considerable impact on quantity demanded.

Therefore, if the price of the yachts which is a luxury good with high elasticity is reduced, demand for yachts would increase and revenue would increase.

7 0
2 years ago
Nielson Motors sold 10 million shares of stock in an SEO. The market price of Nielson's stock at the time was $37.50. Of the 10
Yuliya22 [10]

Answer:

a. $144 million

Explanation:

The computation of the amount of money raised is shown below:

But before that we have to find out the amount raised and underwriting fees which is given below:

Amount raised by company is

= 4 million × $37.5  

= $150 million

And,

underwriting fees is

= $150 million × 4%

= $6 million

So, amount raised by the company is

= $150 million - $6 million

= $144 million

We deduct the underwriting fees from the raised amount

5 0
3 years ago
What are some examples of trade controls?​
aleksandrvk [35]

The use oftrade controls to reduce foreign competition in order to protect domestic industries.

Hope this helps! :)

5 0
2 years ago
Lynette Company's Inventory balance at 12/31/04 was $200,000 and was $188,000 at 12/31/05. Its Accounts Payable balance e at 12/
Viefleur [7K]

Answer:

A) $704,000.

Explanation:

For computing the cash payments we need to calculate the following amounts which are as follows

Total purchases = cost of goods sold + ending inventory - opening inventory

= $720,000 + $188,000 - $200,000

= $708,000

Now cash payment to merchandise is

= Beginning account payable balance + purchased made - ending account payable balance

= $80,000 + $708,000 - $84,000

= $704,000

Hence, the correct option is A. $704,000

3 0
3 years ago
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