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2 years ago

Is a company bonus earned income?

1 answer:

katrin2010 [14]2 years ago

7 0

<span>Earned income typically includes salaries and bonuses, wages, commissions and tips. Union strike benefits are also considered earned income, as are long-term disability benefits received prior to minimum retirement age. So yes</span>

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The Alston Inn is managed by Inns, Inc. The management contract requires 6 percent of total revenue to be transferred to the rep

Scrat [10]

Answer:

1.) Inn's annual total revenue = $7,300,000

2.) Inn's annual net operating income = $1,095,000

3.) Inn's debt service coverage ratio for the year = 9.13

Explanation:

The room revenue is first calculated as follows:

Room revenue = Number of guestrooms * ADR * Percentage of occupancy * 365 days = 200 * $100 * 70% * 365 = $5,110,000

We can now proceed as follows:

1.) Determine the Inn's annual total revenue.

Annual total revenue = Room revenue / Paid occupancy percentage = $5,110,000 / 70% = $7,300,000

2.) Determine the Inn's annual net operating income

Annual net operating income = Total revenue * 15% = $7,300,000 * 15% = $1,095,000

3.) Determine the Inn's debt service coverage ratio for the year.

Debt service coverage ratio = Net operating income / Annual debt service = $1,095,000 / ($10,000 * 12) = 9.13

5 0

3 years ago

Lily wants to build a business. She has very little capital. She does, however, have a partner with which she could run a busine

Sati [7]

Answer:

The correct answer is option (b) Little capital

Explanation:

Solution

With a little capital this will help Lily to choose a sole proprietorship organization for her business. a sole proprietorship can begin with a little capital.

The option (a) is not correct as possession of a partner will not lead her to start a sole proprietorship business.

Also the option (c) is not correct the avoidance of personal liability is not the reason because in sole proprietorship, Lily will be liable for her debts.

4 0

2 years ago

A firm's current profits are $400,000. These profits are expected to grow indefinitely at a constant annual rate of 4 percent. I

Valentin [98]

Answer:

A. $21,200,000

B. $20,800,000

Explanation:

A. Calculation to determine The instant before it pays out current profits as dividends

Value of the firm =[(Current profits) × (1 +Opportunity cost of funds)} ÷ (Opportunity cost of funds - Constant growth annual rate)

Let plug in the formula

Value of the firm= [($400,000) × (1 + 0.06)]÷ (0.06 - 0.04)

Value of the firm= [($400,000) × (1.06)]÷0.02

Value of the firm= $424,000 ÷ 0.02

Value of the firm= $21,200,000

Therefore The instant before it pays out current profits as dividends will be $21,200,000

B. Calculation to determine The instant after it pays out current profits as dividends

Using this formula

Value of the firm =[(Current profits) × (1 +Constant growth annual rate)} ÷ (Opportunity cost of funds - Constant growth annual rate)

Let plug in the formula

Value of the firm= [($400,000) × (1 + 0.04)] ÷ (0.06 - 0.04)

Value of the firm= [($400,000) × (1.04)] ÷ (0.06 - 0.04)

Value of the firm= $416,000 ÷ 0.02

Value of the firm= $20,800,000

Therefore The instant after it pays out current profits as dividends will be $20,800,000

3 0

3 years ago

Discuss the relationship between bond prices and interest rates. What impact do changing interest rates have on the price of lon

Doss [256]

Interest rates and bond prices have an adverse correlation. Bond prices grow during periods of low-interest rates and decline during periods of high-interest rates.

<h3>What is the interest rate?</h3>

The cost of borrowing and the rewards for saving are both indicated by the interest rate. Since there is a premium if the coupon rate is higher than the market rate, the bond's price will be higher. Bond prices will decrease if the coupon rate is lower because there will be a discount.

The price of long-term bonds is more affected by interest rates than the price of short-term bonds. A bond's price varies depending on how long it is.

Learn more about bond prices, here:

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2 years ago

Vbjmgoihmoimgmohmglomk

Allisa [31]

Answer:

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Explanation:

1.bfhejeksk

2.bdhdjddkss

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3 years ago