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alukav5142 [94]
3 years ago
6

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

e Tax Expense 56,520 Interest Expense 43,920 Other Expenses 122,600 Other Selling & Administrative Expenses 351,000 Sales Revenue 1,866,300Salaries and Wages Expense 725,000 (a) Calculate the net income for the Green Thumb, Inc. for Year 3. (b) Prepare a statement of retained earnings for Green Thumb, Inc. for Year 3. Assume the company had retained earnings of $162,200 as of January 1, Year 3, and paid out $46,020 in dividends during Year 3.
Business
1 answer:
iren2701 [21]3 years ago
3 0

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.

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Vanyuwa [196]

Answer:

Yield to maturity is 6.6%

Explanation:

Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity.

Face value = F = $1,000

Assuming Coupon payments are made annually

Coupon payment = $1,000 x 8% = $80

Selling price = P = $1,100

Number of payment = n = 13 years

Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]

Yield to maturity = [ $80 + ( 1000 - 1100 ) / 13 ] / [ (1,000 + 1100 ) / 2 ]

Yield to maturity = [ $80 - 7.7 ] / 1100 = $72.3 /1100 = 0.066 = 6.6%

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3 years ago
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r-ruslan [8.4K]
I’m sure it’s B. Debit Card
6 0
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The _____ is a more specific goal that unifies company-wide efforts, stretches and challenges the organization, and possesses a
Rus_ich [418]

Answer:

The correct answer is strategic objective.

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The strategic objectives are the goals that a company proposes in a term greater than one year to achieve a certain objective according to its business vision. It also includes strategies to reach that goal. Here are some examples of strategic objectives.

The strategic objectives will be based on the vision or idea that is born with the company, determining its mission and values, in addition to conditioning the actions that will be carried out in order to achieve them.

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FromTheMoon [43]

Answer:

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wheels ⇒ 300,000 x 2 parts = 600,000 parts

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3 years ago
Scarlet Corporation, the parent corporation, has a basis of $600,000 in the stock of Brown Corporation, a subsidiary in which Sc
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Answer:

$950,000

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As per IRS section 332, in the case when the parent company received a property when the complete liquidation of subsidiary company is done so the receipts of such property would not recorded either any loss or gain. Also the basis of the parent company assets would be carry over basis.

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