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expeople1 [14]
3 years ago
9

Nueva Company reported the following pretax data for its first year of operations. Net sales 7,400 Cost of goods available for s

ale 5,610 Operating expenses 1,638 Effective tax rate 40 % Ending inventories: If LIFO is elected 627 If FIFO is elected 804 What is Nueva's net income if it elects FIFO
Business
1 answer:
Ludmilka [50]3 years ago
8 0

Answer:

Net Income $574

Explanation:

Calculation of Nueva's net income if it elects FIFO will be :

Net sales$7,400

Less Cost of goods sold ($4,806)

($5,610 − $804)

Gross profit 2,594

Operating expenses (1,638)

Income before taxes 956

(2,594-1,638)

Income tax 382.4

(40%×956)

Net income $574

(956-382.4)

Therefore the Nueva's net income if it elects FIFO would be $574

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An airline is considering a project of replacement and upgrading of machinery that would improve efficiency. The new machinery c
Nikolay [14]

Answer:

$172.25

Explanation:

initial outlay for the project = -$350

cash flow years 1-5 = [($300 - $135 - $70) x (1 - 36%)] + $70 (depreciation expense) = $60.80 + $70 = $130.80

using an excel spreadsheet and the NPV function, we can calculate the project's NPV with an 8% discount rate:

=NPV(8%,130.80,130.80,130.80,130.80,130.80) - $350 = $522.25 - $350 = $172.25

we can also do it manually:

NPV = -$350 + $130.80/1.08 + $130.80/1.08² + $130.80/1.08³ + $130.80/1.08⁴ + $130.80/1.08⁵ = $172.25

6 0
3 years ago
Firms that listen to existing customers and tailor offerings based on this input are far more likely to identify potentially dis
Vladimir [108]

Answer:

The correct answer is False.

Explanation:

The keyword of the new technologies is connectivity. The satisfaction of the client will depend on the quality of said connectivity, and the efficiency and speed of the response. Accordingly, customer service is vital for subsistence and business growth, particularly with regard to digital businesses.

Digital transformation is a reality, therefore it is important to know how to apply technology to optimize customer service. Since good marketing strategies and proper customer service are key to increase sales and customer loyalty.

There are many tools that, properly implemented for customer service, will achieve excellent results for your business.

7 0
3 years ago
Which of these methods of government deficit finance is MOST likely to crowd out private investment?
Sergeeva-Olga [200]

Selling bonds to banks methods of government deficit finance is MOST likely to crowd out private investment

What is crowding out of private investment?

Definition: A situation when increased interest rates lead to a reduction in private investment spending such that it dampens the initial increase of total investment spending is called crowding out effect.

How government deficits can crowd out private investment?

If budget deficits are to be financed by borrowing, interest rates must rise so that capital markets can reach equilibrium. High interest rates, in turn, result in a decreased investment, hence the crowding-out effect.

What does it mean for banks to sell bonds?

When a central bank buys bonds, money is flowing from the central bank to individual banks in the economy, increasing the money supply in circulation. When a central bank sells bonds, then money from individual banks in the economy is flowing into the central bank—reducing the quantity of money in the economy.

Learn more about selling bonds to banks method:

brainly.com/question/15605846

#SPJ4

4 0
2 years ago
The replacement cost of a LIFO basis inventory item is below the net realizable value and above the net realizable value minus t
Anna35 [415]

Answer:

historic cost.

Explanation:

As the original cost is below the net realizable value minus normal profit margin the lower between the cost and market value therefore lower than replacement cost too. Hence, we should do no adjustment and keep the inventory valued at historic cost.

8 0
3 years ago
Miller Company reported the following information in its 2017 financial statements ($ in millions):
ch4aika [34]

The cash the Miller Company collected from customers in 2017 is determined to be $17,885.8 million.

Data and Calculations:

 <u>Balance Sheet:</u>                                          2017           2016

                                                                 million         million

Accounts receivable, net                     $ 1,947.4    $ 1,574.6

Allowance for Uncollectible Accounts     $27.4         $27.7

Accounts receivable, gross               $1,974.8   $1,602.3

Bad Debts Expense for 2017 = $18.0 million

<u>Income statement:</u>

Sales revenue $ 18,276.6

<u>T-Accounts:</u>

Accounts Receivable

Account Title                      Debit         Credit

Beginning balance      $1,602.3

Sales revenue             18,276.6

Allowance for Uncollectible               $18.3

Cash                                               17,885.8

Ending balance                             $1,974.8

Totals                       $19,878.9 $19,878.9

Allowance for Uncollectible Accounts

Account Title                Debit         Credit

Beginning balance                        $27.7

Accounts receivable  $18.3

Bad debts expense                       $18.0

Ending balance          $27.4

Totals                         $45.7         $45.7

 

Thus, the Miller Company collected cash worth $17,885.8 million from its customers in 2017.

Learn more: brainly.com/question/15966323

4 0
2 years ago
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