Which one of the following statements correctly states a relationship?

Andy and Delilah both work and have one qualifying child.They had AGI of $21,000.What is their EIC?

vekshin1

Answer:

$3,584

Explanation:

For the year 2020 if the married filed jointly so the amount should not exceed than $21,710 and eligible for the one child

So the maximum credit amount earned for the one children is $3,584

Also, the income for investment should be $3,650 or less for the particular year

So in the given options, this above amount is not given so the same is to be considered for the year 2020

And we assume that the question ask for the year 2020 only

6 0

4 years ago

A firm is currently paying $2.75 each year in dividends. Recently sales have declined and the board of directors has recommended

levacccp [35]

Answer:

Yes, you would be interested in buying the stock at $20 because it's underpriced. It's actual intrinsic value is $23.76

Explanation:

Use dividend discount model to solve this question;

D1 = 2.75(1-0.10) = 2.475

D2 = 2.475 (1-0.10) = 2.228

D3 =2.228 (1-0.10) = 2.005

D4 = 2.005(1-0.10) = 1.805

D5 = 1.805(1+0.05) = 1.895

Next, find the Present values of each dividend;

PV (D1) = 2.475 /1.12 = 2.2098

PV (D2) = 2.228/1.12² = 1.7761

PV (D3) = 2.005/1.12³ = 1.4271

PV (D4) = 1.805/1.12^4 = 1.1471

Next find PV of constant growing dividends

PV (D5 onwards) = $\frac{\frac{ 1.895}{0.12-0.05} }{1.12^{4} }$

PV (D5 onwards) = 17.2044

Next, sum up these PVs to find the price of the stock;

2.2098 + 1.7761 + 1.4271 + 1.1471 + 17.2044 = $23.76

Yes, you would be interested in buying the stock at $20 because it's underpriced. It's actual intrinsic value is $23.76

3 0

3 years ago

Refer to the financial statement for the current year and prior two years. Analyze the year-to-year change in account balance fo

insens350 [35]

Answer:

c)Company is not performing well as we can observe that % change in sales and gross profit are increasing year by year. Return on equity is almost same year by year

There is no much risk associated with company

Explanation:

1)Current Ratio = current assets/current liability

2)return on equity= net profit/equity

3)Net Income(%)=net income/sales

4)Fixed Asset Turnover= Sales/Fixed asset

5)Debt ratio=debt/assets

8 0

3 years ago

The management of a facility that manufactures parts for car brakes has a policy of testing only some of the items in each produ

Arisa [49]

Answer:Quality control

Explanation:

The act of supervising all the jobs to achieve the desired excellence is termed as quality control. In general, its purpose is to identify the defects in a lot by checking a few items.

Every company device a method to identify the defects and thus eliminate the defects. Quality control team do not correct the mistake instead they notify another team to correct the defect.

8 0

3 years ago

At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $195,000; Total Liabilities of $15,000; and

Paladinen [302]

Answer: Assuming no other changes to Retained earnings, the balance in the Retained earnings account at the end of the year would be: $123000.

Explanation: First we must calculate the accumulated earnings to date with the equity equation: Assets = Liabilities + Equity

We know that equity is made up of capital + retained earnings.

If the asset is 195,000, the Liability 15,000 and the capital 60000

195000 = 15000 + 60000

195000 = 75000

195000 - 75000 = Retained earnings

$ 120000 = Retained earnings.

The result of the year is Income - expenses

226000 - 175000 = $ 51000.

Then the company's total earnings are retained earnings + Profit for the year = 120000 + 51000 = 171000.

We subtract the distribution of dividends and obtain the balance of the retained earnings account: 171000 - 48000 = $123000.

6 0

3 years ago