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3 years ago

What was the 2012 net profit amount if the 2013 pro-forma net profit of $187,000 was based on a 22% increase?

Business

1 answer:

makvit [3.9K]3 years ago

6 0

Answer:

2012 net profit = 100/122 x $187,000

2012 net profit = $153,279

Explanation:

Since the pro-forma net profit for 2013 is $187,000 which increases by 22% over the net profit of 2012, thus, the 2012 net profit is 100/122 of 2013 pro-forma net profit.

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As governments downsize, they often contract with private companies to perform what was once considered to be the traditional wo

kolbaska11 [484]

Answer:

Advantages of Privatization

1. Increased Efficiency of Public Services

2. Creation of competition

3. Job Creation

4. Lack of Political Interference

5. Sale and Tax Revenues

Disadvantages of Privatization

1. Profit Motive as against social welfare

2. Defense Issues

3. Emergence of Monopolies or Duopolies

4. Going concern problems of companies

Explanation:

Advantages of Privatization

1. Increased Efficiency of Public Services: In the case of jails, public schools and welfare agencies; privatization will improve its efficiency because shareholders will want to ensure that management is performing through audit committees but no pressure is on the state to perform.

2. Creation of competition : With privatization of jails schools and welfare agencies, private companies who take up these functions enter into a natural competition to perform better than each other in terms of quality and eventually in some cases 'price'

3. Job Creation: Privatization creates jobs as private companies employ professionals based on merit, unlike state employment agencies who may use zoning as a yardstick for employment.

4. Lack of Political Interference: With privatization, agencies are left to run without political interference. Politicians are hardly professionals or good managers as they may not have any prior experience in these state agencies they are in charge of.

5. Sale and Tax Revenues: With privatization, sale of agencies generate huge income for government and these agencies begin to pay corporate income tax to the government.

Disadvantages of Privatization

1. Profit Motive as against social welfare: A major disadvantage is that these companies exist for profit motive and the social welfare of the citizenry becomes a secondary motive.

2. Defense Issues: In the case of military aircraft maintenance, it might be too risky to privatize because the owners of these companies might belong or be linked to enemy nations. The defense secrets of a nation should be known to the right few.

3. Emergence of Monopolies or Duopolies: In most cases these agencies become monopolies upon privatization as they are sold to one major company or at most few.

4. Going concern problems of companies: Some private firms face challenges on the long run that threatens their existence and they'll call for a bail out or go underground.

4 0

4 years ago

Read 2 more answers

A couple thinking about retirement decide to put aside $2,100 each year in a savings plan that earns 7% interest. In 10 years th

Marina86 [1]

Answer:

310,588.5

Explanation:

As is not said we can assume the 2,100 each year to be paid at the end of the year, and the 7% to be used as a compunded anually rate. So let´s first think just about the 2,100, as they are regulary payments, they can be seen as an anuity inmediate, the formula is as follows:

$s_{n}=p*\frac{(1+i)^{n}-1 }{i}$

where sn is the future value of the regular payments, i is the interest rate and n is the number of payments and p is the amount of regular payment so in this particular case we have:

$s_{n}=2,100*\frac{(1+0.07)^{30}-1 }{0.07}$

$s_{n}=$ =198,367.65

So now let´s think on the gift of 29,000 as it is paid on 10 years, there will remain 20 years with an investment rate of 7% compounded anually. so there we have the classic formula of future value

$FV=VP*(1+i)^{n}$

where FV is the future value, PV is the present value, i is the interest rate per period, and n is the number of periods. Again in this particular case we have:

$FV=29,000*(1+0.07)^{20}$

$FV=112,220.85$

so the total amont will be:

total=198,367.65+112,220.85

total=310,588.5

8 0

4 years ago

On January 1, 2011, Ozark Minerals issued $10 million of 9%, 10-year convertible bonds at 101. The bonds pay interest on June 30

horsena [70]

Answer:

Explanation:

Bonds are corporate debt units that are issued by firms inform of financial securities and are traded as tradeable assets. It is basically referred to as a fixed income instrument since bonds conventionally are paid a certain fixed amount of interest rate (coupon) to its respective debtholders.

going by the question Upon issuance, Ozark should

Credit premium on bonds payable $100,000

Because face value of bonds = $10 million but issue price is $10 million * 101 % i.e $ 10100000

So, premium = 10100000 - 10000000 = $ 100000

5 0

3 years ago

Read 2 more answers

At the end of the preceding year, XYZ Inc. had a deferred tax asset of $17,500,000, attributable to its only temporary differenc

olga2289 [7]

Answer:

See below

Explanation:

Given that;

Deferred tax =

Temporary difference = $17,500,000

Taxable income = $45,000,000

Taxable income = $12,000,000

Tax rate = 25%

We would get the value of income tax expense for the current year

Deferred tax asset = (Temporary difference × Tax rate) - ( Referred tax at the end of the preceding year)

Deferred tax asset = ($45,000,000 × 25%) - $17,500,000

Income tax payable = (Taxable income × Tax rate)

Income tax payable = ($12,000,000 × 25%)

Valuation allowance in deferred tax = (One third of the temporary difference of the current year × Tax rate)

Valuation allowance in deferred tax = (1/3 × $45,000,000 × 25%)

Journal entries

Deferred tax Dr $13,000,000

($45,000,000 × 25%) - $17,500,000

..................Balance Cr $6,250,000

.................To Income tax payable

($12,000,000 × 25%) Cr $3,000,000

..................To Valuation allowance in deferred tax (1/3 × $45,000,000 × 25%) Cr $3,750,000

6 0

3 years ago

Functions of the economic commission for Africa.

timofeeve [1]

Answer:

The main functions of the ECA include the study of problems of the economic and social development of the African countries, the promotion of the economic development of the African states, and the strengthening of their economic relations both with one another and with other countries.

4 0

3 years ago

Read 2 more answers