Willow Corp NOL carryover to 2021 (year 4) is $10,000
<h3>How to calculate Willow Corp NOL carryover to year 4</h3>
Carry forward losses:
- Year 1 = $50,000
- Year 2 = $40,000
Total carry forward losses = $50,000 + $40,000
= $90,000
Eligible carry forward loss = $100,000 × 80%
= $100,000 × 0.8
= $80,000
Willow Corp tax liability in year 3 = $100,000 - $80,000 × 21%
= $20,000 × 21%
= 20,000 × 0.21
= $4,200
Willow Corp NOL carryover to year 4 = Total carry forward losses - Eligible carry forward loss
= $90,000 - $80,000
= $10,000
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The amount of net income reported on Sparty's income statement is $19,690.
<h3>
What is revenue?</h3>
- The total amount of income earned by the sale of goods and services connected to the principal operations of the firm is referred to as revenue in accounting.
- Commercial revenue is often known as sales or turnover.
- Some businesses make money by charging interest, royalties, or other fees.
<h3>What are dividends?</h3>
- A dividend is a profit distribution made by a corporation to its shareholders.
- When a corporation makes a profit or has a surplus, it can pay a portion of the earnings to shareholders as a dividend.
- Any money that is not dispersed is re-invested in the company.
<h3>Solution -</h3>
To find the amount of net income reported on Sparty's income statement, use the following formula:
Net Income = Gross Profit — Operating Expenses — Other Business Expenses — Taxes — Interest on Debt + Other Income
Net income = 80000 - 31000 - 11000 - 18130 = 19690
Therefore, the amount of net income reported on Sparty's income statement is $19,690.
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Answer:
The answer is 27,408.71
Explanation:
Solution
Recall that:
You were left with a trust fund of =$100,00
Interest rate = 6.5%
Money with drawled = 4 installments
Now,
The step to take is to find you could withdraw currently at the start of each of the next 3 years with a zero account to end up with.
Now,
100, 00 = X (1 - (1.065)^-4/.065/1.065
We now solve for X
Thus
X =7,408.71
By applying or using a financial calculator
We arrange it to an annuity due setting - [2nd] [BGN] then [2nd] [Set] this will set it to mode "BGN"
So,
N = 4
I/Y = 6.5
PV = -100,000
FV = 0
CPT PMT
The payments are known to to be 27,408.71
Note : Kindly find an attached copy of the Financial calculator below
Answer:
The BEP will decrease, which is good.
The reason is that C90B has a better profit margin than Y45E so if the sales shift toward C90B the Contribution mix margin ratio will be higher and it will be easy to pay fixed cost and make a gain
Explanation:
C90B
sales 37,000
variable expenses 9,250
contribution margin 27,750
CM 0.75
Y45E
sales 29,700
variable expenses 16,335
contribution 13,365
CM 0.45
Answer:
a. What is the PI if the discount rate is 20%?
profitability index = present value of cash flows / initial outlay
PI = $9,137.41 / $5,000 = 1.83
b. What is the NPV if the discount rate is 20%?
NPV = -$5,000 + $9,137.41 = $4,137.41
c. What is the IRR if the discount rate is 20%?
the discount rate is irrelevant when you are calculating the IRR, since the IRR is the discussion rte at which the NPV = $0
IRR = 55.23%
Explanation:
Initial Outlay -$5,000
Year 1 $3,000
Year 2 $3,500
Year 3 $3,200
Year 4 $2,800
Year 5 $2,500.
