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Dennis_Churaev [7]
3 years ago
12

Middlefield Motors is evaluating project A, which would require the purchase of a piece of equipment for 393,000 dollars. During

year 1, project A is expected to have relevant revenue of 157,000 dollars, relevant costs of 79,000 dollars, and some depreciation. Middlefield Motors would need to borrow 393,000 dollars for the equipment and would need to make an interest payment of 23,580 dollars to the bank in year 1. Relevant net income for project A in year 1 is expected to be 17,000 dollars and operating cash flows for project A in year 1 are expected to be 73,000 dollars. Straight-line depreciation would be used. What is the tax rate expected to be in year 1
Business
1 answer:
Firdavs [7]3 years ago
3 0

Answer:

0.2273

Explanation:

The computation of the tax rate expected to be in year 1 is shown below:-

Depreciation = Operating cash flow - Net income - Interest

= $73,000 - $17,000 - $23,580

= $32,420

Earning before interest and tax = Revenue - Cost - Depreciation

= $157,000 - $79,000 - $32,420 -

= $45,580

Earning before tax = Earning before interest and tax - Interest

= $45,580 - $23,580

= $22,000

Tax rate = Earning before tax - Net income

= $22,000 - $17,000

= $5,000

Tax rate = Tax ÷ EBT

= $5,000 ÷ $22,000

= 0.2273

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More than 3 but less than or equal to 4 days is the average processing time per income tax form.

Option - a

<u>Explanation: </u>

\text{ WIP (Work in process) }= R \times T = 64 = 20(T)

T = \frac{64}{20}  

So, T = 3.2Days

The average processing time per income tax form is more than 3 but less than or equal to 4 days.

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Write the number in word as a number seventeen thousand four hundred thirty three
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The number is 17,433
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7 0
3 years ago
Bovine Company, a wholesale distributor of DVDs, has been experiencing losses for some time, as shown by its most recent monthly
german

Solution :

Particulars                   \text{Total company}          \text{South  }           \text{Central}          \text{North}

Sales                           $1,500,000              $400,000      $600,000     $500,000

Variable expenses        588,000                208000       180000     200000

Contribution margin      912000                  192000        420000    300000

Traceable fixed          770,000                    240,000      330,000    200,000

expenses          

Geographic market      142,000          -$48000              $90000       $100000

segment expenses

Common fixed

expenses not traceable

to geographic markets

Net operating income

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3 years ago
Americans often equate "bigger" with "better," and prefer larger cars, TV screens, homes, even meals. Researchers suspect that i
STALIN [3.7K]

Answer:

The correct answer is letter "A": psychological.

Explanation:

The tendency individuals prefer larger objects while making purchases could reflect their <em>psychological </em>need for protection. Some people believe the bigger or the more of something the merrier. In certain aspects, it could be true since, for instance, having larger savings instead of expenses provides individuals more possibilities not to be critically affected by economic hardship. Though in some other aspects such as technology, day by day devices are smaller but their features are enhanced.

Thus, <em>as the perception of owning larger stuff is psychological, it is merely subjective.</em>

4 0
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