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SIZIF [17.4K]
3 years ago
13

The following is a partial year-end adjusted trial balance. Account Title Debits Credits Sales revenue 300,000 Loss on sale of i

nvestments 22,000 Interest revenue 4,000 Cost of goods sold 160,000 General and administrative expenses 40,000 Restructuring costs 50,000 Selling expenses 25,000 Income tax expense 0 Income tax expense has not yet been recorded. The income tax rate is 40%. a. Determine the operating income (loss). b. Determine the income (loss) before income taxes. c. Determine the net income (loss).
Business
1 answer:
Varvara68 [4.7K]3 years ago
5 0

Answer:

Operating income    75,000

EBT                            57,000

Net income ncome  34,200

Explanation:

Sales revenue       300,000

Cost of goods sold (160,000)

G&A expenses         (40,000)

Selling expenses   <u>   (25,000)  </u>

Operating income    75,000

loss on sale              (22,000)

interest revenue          4,000

EBT                            57,000

income tax expense

57,000 x 40% =        (22,800)

Net income ncome  34,200

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Answer:

This is an escrow transaction. An escrow is an arrangement where a third party (ABC Escrow) holds funds for a given transaction between other two parties.

The Van Horns are the grantees in this transaction.  

The escrow is responsible for the safe keeping of the funds, in order to avoid any type of loss or fraud.

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3 years ago
1. Describe several operational and behavioral benefits that are generally attributed to a participative budgetary process. 2. I
morpeh [17]

Answer:

Explanation:

1. Some of the operational and behavioral benefits that are generally attributed to a participatory budgeting process are as follows:

a)  Utilization of the best knowledge of activities in a specific area, because the participants are close to daily operations.

b)  Goals that are more realistic and acceptable.

c)   Improved communication and group cohesiveness.

d)   A sense of commitment and willingness to be held accountable for the budget.

2. Four deficiencies in Patricia Eklund’s participatory policy for planning and performance evaluation, along with recommendations of how the deficiencies can be corrected:

Deficiencies Recommendations The setting of constraints on fixed expenditures includes uncontrollable fixed costs, thereby mitigating the positive effects of participatory budgeting. Rewards should be based on meeting budget and/or organizational goals or objectives. The arbitrary revision of approved budgets defeats the participatory process. The contingency budget should be separate, over and above each department’s srcinal submission. The division manager holds back a percentage of each budget for discretionary use. Managers should be involved in the revision of budgets. Managers could submit a budget with programs at different levels of funding. Evaluation based on budget performance must be accompanied with intrinsic rewards. Divisional constraints could be at a budget "kick-off meeting;however individual limit of controllable expenses should be set by each manager

6 0
3 years ago
Accounts on the left side of the accounting equation (assets) are increased with a(n) to the account, whereas accounts on the ri
Nady [450]

Answer:

Debit and credit

Explanation:

While recording the transaction, the accounts are debited or credited based on the nature of the transaction

As we know that

The debit section reports assets and expenses side while the credit section reports sales revenue, stockholder equity, and the liability side.  

So if the asset side or expense side is increased than it would be displayed on the left-hand side while the revenue is increased than it would be reflected on the right-hand side.

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3 years ago
Due to the entrance of two firms in 2012, total monthly profits for all firms in the market decreased by $3,000 due to the _____
Lera25 [3.4K]

Complete Question:

Use the following scenario to answer the following questions:

In 2011, three firms were selling cellular phone service for a price of $40 per month in Pittsburgh, Pennsylvania. Each firm serviced 100 cell phone customers; thus, all firms together serviced a total of 300 customers. In 2012, five firms were selling cellular phone service for a price of $30 per month. Each firm serviced 70 cell phone customers; thus, all firms together serviced a total of 350 customers. Assume marginal cost is $0 (zero) for all firms and thus total revenue is equal to total profit.

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Answer:

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Explanation:

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