Making a good purchasing decision requires

You purchased a share of stock for $53. One year later you received $3.00 as dividend and sold the share for $52. Your holding-p

GalinKa [24]

Answer:

the holding period return is 3.77%

Explanation:

The computation of the holding period return is shown below:

Holding period return is

= (Income + (Selling price - Purchase price)) ÷ Purchase price

= ($3 + ($52 - $53)) ÷ 53

= 3.77%

Hence, the holding period return is 3.77%

We simply applied the above formula so that the correct value could come

And, the same is to be considered

3 0

2 years ago

3. Company with single taxation is called?

bagirrra123 [75]

Answer:

(a) S-Type

Explanation:

Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.

The different types of tax include the following;

1. Income tax: a tax on the money made by workers in the state. This type of tax is paid by employees with respect to the amount of money they receive as their wages or salary.

2. Property tax: a tax based on the value of a person's home or business. It is mainly taxed on physical assets or properties such as land, building, cars, business, etc.

3. Sales tax: a tax that is a percent of the price of goods sold in retail stores. It is being paid by the consumers (buyers) of finished goods and services and then, transfered to the appropriate authorities by the seller.

A company with single taxation is called S-Type i.e sole proprietorship.

Basically, a sole proprietorship business is a type of business that is owned by a single person and as such their profits are taxed once as personal income tax.

4 0

2 years ago

The following information pertains to Pernell Company's pension plan. Beginning PBO: $500,000; current service cost $50,000; dis

monitta

Answer:

= $560,000

Explanation:

Given that:

-Beginning PBO: 500,000
-Current Service Cost: 50,000
-Discount Rate: 6% => interest cost = 500,000*6% = 30,000
-Contributions by Pernell: 40,000
-Benefits paid to employees 25,000
-Loss on PBO: 5,000

As we know that service cost; gains and losses; payments to retired employees; prior service cost; interest cost; payments to employees are factors that change the balance of the PBO

So the ending balance of the PBO will be:

Beginning PBO + Current Service Cost + Interest cost Loss on PBO -Benefits paid to employees

$500,000 + $50,000+ $30,000+$5,000-$25,000

= $560,000

4 0

2 years ago

Psymon Company, Inc., sells construction equipment. The annual fiscal period ends on December 31. The following adjusted trial b

Vaselesa [24]

Answer:

(a) Multi-step income statement that would be used for internal reporting purposes

Sales Revenue 217,400

Less Cost of Goods Sold (126,800)

Gross Profit 90,600

Less Operating Expenses

Salaries and Wages Expense 21,800

Office Expenses 22,800 (44,600)

Operating Income 46,000

Less Non Operating Expenses

Interest Expense (3,200)

Net Income Before Tax 42,800

Income Tax Expense (12,840)

Net Income After Tax 29,960

(b) Multi step income statement that would be used for external reporting purposes

Sales Revenue 217,400

Less Cost of Goods Sold (126,800)

Gross Profit 90,600

Less Operating Expenses

Salaries and Wages Expense 21,800

Office Expenses 22,800 (44,600)

Operating Income 46,000

Less Non Operating Expenses

Interest Expense (3,200)

Net Income Before Tax 42,800

Income Tax Expense (12,840)

Net Income After Tax 29,960

(c) the gross profit percentage is 41.67%

Explanation:

Internal Reports versus External Reports

Internal reports do not have to conform to any Accounting Standards,However External reports have to confirm and be prepared according to accounting standards for Fair Representation and Comparability purposes

Gross Profit Percentage

Gross Profit Percentage = Gross Profit / Sales × 100

= 90,600/ 217,400 × 100

= 41.67%

8 0

2 years ago

The average test score of rsm students in september increased by 10%. in october it increased by another 15%. by what percent di

tia_tia [17]

If the average test score of RSM students in the month of September is increased by 10 percent and on the next month another 15 percent. The total percentage of the average score on the test increase during the two months time is around 3.77 percent.

3 0

2 years ago