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Akimi4 [234]
3 years ago
12

The difference between a​ firm's operating income and income before taxes is​ _____. The difference between a​ firm's ​before-ta

x accounting profit and ​after-tax accounting profit is​ ____. A. ​taxes, investments B. ​investments, taxes C. ​owner's equity, current liabilities D. cost of goods​ sold, taxes
Business
2 answers:
muminat3 years ago
8 0

Answer:

The correct answer is B. ​investments, taxes.

Explanation:

BAIT is an accounting indicator of the profitability of a company that is calculated as income minus expenses, excluding taxes and interest that the company has to pay from expenses.

BAII or BAIT is also known as an operating result or EBIT (Earnings Before Interest and Taxes).

BAII = Revenue - Cost of goods sold - Operating expenses

It is a ratio widely used in financial analysis because it is very easy to compare between companies and not including taxes or interest avoids discrepancies that arise between different forms of capital and tax rates paid by companies. It is used to perform the Dupont analysis and calculate the ROE, among other ratios.

BAI is the acronym for Profit Before Tax. As its own name points out, it is an indicator of the operating result of a company without taking into account taxes. The BAI is reached after subtracting operating expenses from income. It would therefore be the gross profit, without going through the magnifying glass of the Treasury and of the banks or other creditors.

The BAI is an indicator used to measure the progress of the business, since it can be compared annually or quarterly to see its evolution. Therefore, it is a regular income statement.

monitta3 years ago
3 0

Answer: Option A

Explanation: Operating income refers to the income that the company earns from performing its core operations. It is also denoted as EBIT. Thus, the difference between operating income and income after tax is the tax that has been deducted from the operating income.

While calculating accounting profit, opportunity cost is not deducted from the revenue hence before tax and after tax depicts the investments that were made to earn that profit.

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Mike's Motors Corp. manufactures motors for dirt bikes. The company requires a minimum $30,000 cash balance at each month-end. I
Lapatulllka [165]

Answer:

Mike's Motors Corp.

Cash Budget

                                             July             August        September

Beginning balance          $41,000          $30,000          $30,000

Cash receipts                   92,000            118,000           157,000

Total cash available      $133,000         $148,000        $187,000

Cash payments              120,000           106,900           134,400

Interest/Loan repayment                         11,100              6,602

Cash balance                    13,000            30,000            45,998

Cash to borrow                 17,000                      0               0

Minimum cash balance $30,000          $30,000          $30,000

Explanation:

a) Data and Calculations:

Minimum cash balance = $30,000

Interest rate on borrowings = 3% per month

Beginning cash balance = $41,000

Cash Budget

                                           July             August        September

Beginning balance        $41,000          $30,000          $30,000

Cash receipts                 92,000            118,000           157,000

Total cash available    $133,000         $148,000        $187,000

Cash payments            120,000           106,900           134,400

Interest/Loan repayment                         11,100              6,602

Cash balance                  13,000            30,000            45,998

Cash to borrow               17,000                      0               0

Minimum cash balance 30,000            30,000            30,000

Loan repayment:

In August:

Interest is paid =   $510 ($17,000 * 3%)

Loan is repaid = 10,590

Total paid =        $11,100

Balance of loan unpaid = $6,410 ($17,000 - 10,590)

In September:

Interest on loan = $192 ($6,410 * 3%)

Loan repaid =     6,602 ($6,410 + 192)

6 0
2 years ago
Scenario: Home Monopolist) A monopolist faces a demand curve given by P = 60 2Q and has total costs given by TC = Q2. Its margin
enyata [817]

Answer:

2Q

Explanation:

Economy equilibrium is where MC = MR.

Marginal cost equals marginal return when the supply and demand is linear. Consumer surplus is the additional amount that a consumer is willing to pay for the goods and services. Here MC = 2Q and MR = 60 + 4Q. Here consumer is paying 2Q additional in the equation of marginal return.

6 0
3 years ago
Selected information from Gerrard, Inc.’s financial activities in the year 2004 was as follows: Net income was $330,000. The tax
ValentinkaMS [17]

Answer:

$0.26

Explanation:

diluted earnings per share (EPS) = (net income - preferred dividends) / (weighted average outstanding shares + diluted shares)

net income = $330,000

preferred dividends = 2,000 x $500 x 8% = $80,000. Since the preferred stocks are convertible, they will be considered diluted shares. Therefore, no preferred dividends will be included in the calculation.

weighted average outstanding shares:

  • January 1 = 700,000 x 12/12 = 700,000
  • March 1 = 200,000 x 10/12 = 166,666.7
  • total weighted average = 866,666.7

diluted shares = 2,000 preferred stocks x 200 = 400,000

diluted EPS = $330,000 / (866,666.7 + 400,000) = $0.260526247 ≈ $0.26

8 0
3 years ago
Roma and Swain are partners in Roma & Swain Attorneys, LLP, a limited liability partnership. Roma supervises their firm's as
meriva

Answer:

b. Roma and Taylor

Explanation:

In this case each attorney is liable for his negligence, so Taylor will be liable for not appearing in court .

Roma is his supervisor, and he will also be liable because he is responsible for Taylor's performance.

The other attorneys in the firm will not be liable, because there is personal liability. When they are not directly involved in negligence, they will not be liable to Umberto.

4 0
3 years ago
Who are responsible for tourism enlargement?
Ulleksa [173]

Answer: UNWTO

Explanation:

7 0
3 years ago
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