After-tax saving method
Gross Pay (Tax)=Net Pay
$2,000 $(660)= $1,340
Spendable Income $1,340 -$200= $1,140
]The term "spendable income" is used to describe the sum of money left over after tax payments have been made. When all bills and expenses have been covered, what's left over is a person or family's discretionary income, which can be used toward future goals like investing, saving, or spending. You can spend your discretionary funds because of the money you have available to you.
When calculating your disposable income, how do you account for taxation? It is your spendable income, from which you subtract necessary living expenses, that serves as the basis for your discretionary income.
Consider your take-home pay once taxes have been deducted as an illustration of your discretionary income. The term "discretionary income" refers to the amount of money left over after obligatory expenses have been met. These include but are not limited to rent or mortgage, student loan payments, utility bills, and groceries.
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Answer:
$2,320
Explanation:
the interest accrued by February 28, 20X5 = $10,000 x 12% = $1,200
since the interest compounds yearly, the interest accrued by December 31, 20X5 = ($11,200 x 12% x 10/12) + $1,200 = $1,120 + $1,200 = $2,320
Compound interest means that earned interest will earn more interest itself in the next period. That is why you need to include the previously accrued interest in the interest calculation for the second part.
Answer:
I. It helps users to be better informed, so they can evaluate the risks and returns of different business decisions.
II. It collects and processes data from transactions and events.
III. It organizes financial information into useful reports.
IV. It communicates financial information to decision makers.
Explanation:
Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP) and financial accounting standards board (FASB).
The fundamental functions of an accounting system includes;
I. It helps users to be better informed, so they can evaluate the risks and returns of different business decisions.
II. It collects and processes data from transactions and events.
III. It organizes financial information into useful reports.
IV. It communicates financial information to decision makers.
Answer: Pause/Proceed-with-caution
Explanation:
A timeout strategy refers to when a company decides to scale down a certain or certain operations for a time to effectively rest. The Pause/Proceed with caution strategy is a timeout strategy because it involves the company pausing operations to enable it assess the market before it can launch a bigger grand strategy.
This strategy is also employed when a company has gone through changes such as a serious expansion. They take a pause to enable the changes brought by the expansion to seep through the organization to give employees the chance to get acquainted with the changes so that moving forward, everyone is more or less on the same page.
Answer:
$22,671
Explanation:
The calculation of the cash flow for the year one is as follows:
Given amount $25,000
Less: Depreciation -$18,150
Earning before income and taxes $6,850
Less: Income tax expense -$2,329 ($6,850 × 34%)
Earning after taxes $4,521
Add: Depreciation expense $18,150
Annual cash flow $22,671
The depreciation expense is computed below:
= $55,000 × 33%
= $18,150
