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ss7ja [257]
4 years ago
15

The following information was extracted from the 2020 financial statements of Max Company: Income from continuing operations bef

ore income tax $705,000 Selling and administrative expenses 480,000 Income from continuing operations 495,000 Gross profit 1,350,000 The amount reported for other expenses and losses is
a. $210,000
b. $15,000.
c. $165,000.
d. $225,000.
Business
1 answer:
Bezzdna [24]4 years ago
5 0

Answer:

c. $165,000.

Explanation:

Gross profit $1,350,000

Selling and administrative expenses $480,000

Income from continuing operations before income tax $705,000

Income from continuing operations 495,000

Total Expenses = Gross Profit - Income from continuing operations before income tax

Total Expenses = $1,350,000 - $705,000 = $645,000

Other Expenses = Total Expenses - Selling and administrative expenses

Other Expenses = $645,00 - $480,000 = $165,000

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6 0
2 years ago
Explain the relationship between<br> production and consumption.
nataly862011 [7]

Answer:

if there is no production there is no consumption, and that goes both ways.

3 0
3 years ago
Read 2 more answers
Companies that develop customized business software often work closely with their users when installing their products. this clo
7nadin3 [17]
<span>This close contact often creates new product ideas through "customers input or listening to customers".

The significance of client or customer input increments with market originality of an item up to a point and after that drops off for new items, though the significance of customer input increments with technological newness of an item without dropping off. We likewise found that the significance of customer input essentially builds the utilization of client concentrated statistical surveying techniques; while, neither market nor innovative item novelty in themselves had much direct impact on explore strategies.
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7 0
3 years ago
Dell Computers would like to borrow pounds, and Virgin Airlines wants to borrow dollars. Because Dell is better known in the Uni
Alex73 [517]

Answer:

Explanation:

                        USD GBP        Prefers

Dell                     7           9         GBP

Virgin Airlines    8          8.5        USD

In a swap exchange Party A will have a relative preferred position in one money and Party B will have a bit of leeway in the other cash. For this situation Dell has a similar bit of leeway in USD getting rate and Virgin has a preferred position in GBP acquiring rate.  

Additionally note that dependent on the FICO assessments of the organization the acquiring rate will vary pulling in parties for a swap exchange.

Virgin would borrow £10 million for two years and Dell would borrow $16 million for two years. The two companies would then swap their proceeds and payment streams. Then they enter into a swap agreement to exchange their cash flows to get their preferred currency rates with an interest rate mutually benefiting both the parties.

6 0
4 years ago
Read 2 more answers
Goode Inc.'s stock has a required rate of return of 11.50%, and it sells for $29.00 per share. Goode's dividend is expected to g
Soloha48 [4]

Answer:

D0 = $1.22

Explanation:

Data provided in the question:

Required rate of return, r = 11.50% = 0.115

Selling price of the stock = $29.00

Expected growth rate = 7.00% = 0.07

Now,

Stock price = \frac{\textup{D1}}{\textup{(r-g)}}

here,

D1  is the current dividend

thus,

$29.00 = \frac{\textup{D1}}{\textup{(0.115-0.07)}}

or

D1 = $1.305

also,

D0 = \frac{\textup{D1}}{\textup{(1+g)}}

or

D0 = \frac{\textup{1.305}}{\textup{(1+0.07)}}

or

D0 = 1.219 ≈ $1.22

4 0
4 years ago
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