The advantages of affiliate marketing include ____

A list of Year 3 revenues and expenses for Green Thumb, Inc. is provided below. Advertising and Promotion Expenses 262,700 Incom

iren2701 [21]

Answer:

A. Net Income = $304,560

B. Ending Retained Earnings = $420,740

Explanation:

Req. (A)

Green Thumb, Inc.

Income Statement

For the year ended, 31 December, 20Y3

Revenues:

Sales Revenues $1,866,300

Expenses:

Salaries and wages expenses $725,000

Advertising and Promotion Expenses 262,700

Income Tax Expense 56,520

Interest Expense 43,920

Other Expenses 122,600

Other Selling & Administrative Expenses 351,000

Total Expenses = ($1,561,740)

Net Income = $304,560

Note: We can use a multiple step income statement. However, as there is no instruction, we use single step income statement.

Req. (B)

Green Thumb, Inc.

Statement of Retained Earnings

For the year ended, 31 December, 20Y3

Balances, January 1 $162,200

Add:

Net income for the current year $304,560

Less: Dividends ($46,020)

Balances, December 31 $420,740

Note: Here, Balances, January 1 = Beginning Retained earnings Balance

Balances, 31 December = Ending retained earnings.

3 0

3 years ago

If Marriott used a single corporate hurdle rate for evaluating investment opportunities in each of its lines of business, what w

jolli1 [7]

Answer:

Explanation:

If a company(Marriott in this case) uses a single hurdle rate to decide whether an investment should be undertaken or not, some projects that need to be accepted would end up being rejected and vice versa. For example,

if Marriott's hurdle rate is 10% and it's evaluating

project A with a 15% cost of capital &

project B with a 6% cost of capital .

Evaluation:

Project A would probably lead to a negative NPV because the cost of capital is higher (meaning it is riskier than the firm) hence could be rejected, but using the company hurdle rate of 10% to evaluate it could make its NPV positive. This would ignore the actual additional risk of the project.

5 0

3 years ago

Direct Labor Variances The following data relate to labor cost for production of 20,000 cellular telephones: Actual: 8,450 hrs.

Lady bird [3.3K]

Answer and Explanation:

The computation is given below:

a)

Direct labor rate variance = (Actual rate - Standard rate) × Actual hours

= ($22.50 - $23) × 8,450 hours

= -$4,225.00 Favorable

Direct labor time variance = (Actual hours - Standard hours) × Standard rate

= (8,450 hours - 8,400 hours) × $23

= $ 1,150.00 Unfavorable

Total direct labor cost variance is

= Direct labor rate variance + Direct labor time variance

= $4,225 Favorable + $1,150 Unfavorable

= -$3,075.00 Favorable

b. In the case when the employees are not much experienced or they are poorly trained so the less experience cause to less performance due to which the actual time needed should be more than the standard one

3 0

3 years ago

Erica and Brett decide to form their new motorcycle business as an LLC. Each will receive an equal profits (loss) interest by co

KATRIN_1 [288]

Answer:

$58,500

Explanation:

The outside basis is defined as the tax basis that a partner has on the partnership. To find it, the value of all the resources contributed by the partner is taken and the debt relief and any debt assigned is subtracted. To solve this exercise, we should follow these steps:

1. Determine the contributed capital.

According to the problem statement, Brett provided cash ($ 9,500) and a building (here the value of the adjusted base, $ 39,000, is taken). Therefore, the total contributions are $48,500.

2. Calculate capital increases.

The partnership obtained a loan for $59,000, which was shared equally among the partners. Therefore, Brett received 50%, that is, $29,500.

Now, we must add the contributed capital plus capital increases:

$48,500+29,500=78,000$

3. Calculate mortgage debt issues.

The nonresource mortgage is 44,000, a value that exceeds the basis of the contributed property. In that case, the surplus is taxed to the contributing partner. To determine it, simply subtract the nonresource mortgage less adjusted basis of the building:

$44,000-39,000=5,000$

On the other hand, the remaining mortgage on the building is calculated, by dividing the value of the adjusted base of the property, in this case, 39,000 by 2, which results in 19,500.

Therefore, mortgage debt issues are equivalent to:

$5,000+19,500=24,500$

We add the contributed capital plus capital increases plus mortgage debt issues:

$78,000+24,500=102,500$

4. Subtract debts.

The partnership assumes the nonrecourse mortgage (which is computed as a debt) for 44,000. Because this component is not covered entirely by Brett, then this amount must be deducted from his individual tax base.

Therefore:

$102,500-44,000=58,500$

58,500 is Brett´s outside tax basis in his LLC interest.

On a balance sheet, we can see it as follows:

Particulars Amount in $

Cash 9,500

+Adjusted basis of the 39,000

building

+50% profit sharing ratio 29,500

+Nonrecourse mortgage 5,000

less adjusted basis

+Remaining mortgage on 19,500

building

TOTAL 102,500

-Debt on building (44,000)

Outside tax basis 58,500

7 0

3 years ago

The chapter opener noted that in mid-2016 you could earn an interest rate of 0.25% by buying a 3-month Treasury bill or an in

ruslelena [56]

Answer:

The correct option is D,the markets for bonds of different maturities are separate or segmented

Explanation:

Market segmentation theory is of the view that market for short-term and long-term bonds are segmented from each other,wherein investors with different preferences investing in different markets.

Banks for instance are short-term position takers due to their preference for liquidity and would favor investing short-term instruments like the 3-month Treasury bill such that at every point in time, there is enough cash liquidity to meet customers' request for withdrawal of funds.

On the flip side, pension fund administrators take a long-term position on investment, hence would prefer the 30-year Treasury bill since their payment of retirement benefits is usually a low portion of their total contributions received from contributors to their pension funds.

5 0

3 years ago

The advantages of affiliate marketing include _____.