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Flura [38]
3 years ago
5

Southeast Airlines had pretax earnings of $30 million, including a gain on disposal of a discontinued operation of $5 million. T

he company’s tax rate is 40%. What is the amount of income tax expense that Southeast should report in its income statement?
Business
1 answer:
klasskru [66]3 years ago
6 0

Answer:

Income tax expense of $14 million should report in the income statement

Explanation:

Southeast Airline should report the income on the basis of their earning in the year.

Earning Before Tax = $30 Million

Tax on Earning Before Tax = $30 Million x 40% = $12 million

Gain on disposal = $5 million

Tax on Gain on disposal = $5 million x 40% = 2 million

Total Income tax = $12 million + $2 million = $14 million

Another way

Total Income tax = ( $30 million + $5 million ) x 40% = $14 million

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The central route to persuasion is to ____ as the peripheral route to persuasion is to ____
pychu [463]
The central route to persuasion is to be persuaded by the content of the message as the peripheral route to persuasion is to agree on the message not based on the arguments but on the expertise of the speaker.For example, when a relationship expert speaks, you can decide to agree with him on the mere fact that he is a relationship expert but not on what he is saying because it may be correct or wrong.
8 0
3 years ago
Jasper Furnishings has $225 million in sales. The company expects that its sales will increase 10% this year. Jasper's CFO uses
lions [1.4K]

Answer:

$75,637.5

Explanation:

Sales = $225 million

Growth in sales = 10%

Inventory = $15 + 0.245(Sales)

(sales) S1 = $225,000,000 × 1.10

   = $247,500,000

Inventory = $15 + 0.245 ($247.5)

                = $15 + 60.6375

                = 75.6375

Since this relationship is expressed in thousands of dollars,

Inventory = $75.6375 x $1000

                = $75,637.5

7 0
3 years ago
Consider the following uneven cash flow stream: Year Cash Flow 0 $0 1 $250 2 $400 3 $500 4 $600 5 $600 What is the present (Year
viva [34]

Answer:

The correct answer is: $1715,87

Explanation:

To calculate the present value you need to use the Net Present Value. The NPV is the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

The formula is:

             n

<h3>NPV= ∑ [Rt/(1+i)^t] - I0</h3>

            t-1

where:

R t​     =Net cash inflow-outflows during a single period t

i=Discount rate of return that could be earned in alternative investments

t=Number of timer periods

<u>In this exercise:</u>

NPV= 0+ 250/1,10^1 + 400/1,10^2 + 500/1,10^3 + 600/1,10^4 + 600/1,10^5

<u>NPV= $1715,87</u>

7 0
3 years ago
A marketing manager targeting Generation Y should be aware that this group is turned off by:A) the "soft sell".B) overt branding
AysviL [449]

Answer:

B) overt branding practices

Explanation:

Generation Y is the group of people who were born between 1990s to early 2000s. Probably most commonly known as millennials.

Statistics shown that when it come to choosing a product, millennial tend to choose the individuals that they can trust/admire rather than overt branding practices. This is why online influencers market is really booming among this demographic.

On top of that ., They value the type of  advertisement that can objectively define the negative and positive characteristics of a certain product rather than advertising it as if it's 'the best product ever' like commonly done by most companies in the past.

7 0
3 years ago
The Rivoli Company has no debt outstanding, and its financial position is given by the following data:
anzhelika [568]

Answer:

Intrinsic value is $45

Explanation:

The starting point to determining Rivoli Company intrinsic value is to compute the earning after tax as shown below:

Earnings after tax=earning before tax*(1-tax rate)

earnings before tax is $600,000

tax rate

earnings after tax=$600,000*(1-0.25)

                               =$600,000*0.75

                               =$450,000

Then we need to compute earnings per share;

Earnings per shares=earnings after tax/weighted average number of shares

                                 =$450,000/100,000

                                =$4.5

Intrinsic value=earnings per share/cost of equity

  cost of equity is 10%

intrinsic value=$4.5/10%

                      =$45

7 0
3 years ago
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