Answer:
-$130,000
Explanation:
The computation of the net loss deducted from his return is shown below:
= Income - interest deductions - operating expenses - depreciation expenses
= $20,000 - $80,000 - $45,000 - $25,000
= $20,000 - $150,000
= -$130,000
Since the value comes in negative which reflects the net loss for the year
We simply deduct the revenues from the expenses so that the net income or net loss could come
Answer:
a-1. We have:
Recession EPS = $1.49
Normal EPS = $2.13
Expansion EPS = $2.45
a-2. We have:
Recession percentage change in EPS = -30.00%
Expansion percentage change in EPS = 15.00%
b-1. We have:
Recession EPS = $1.12
Normal EPS = $1.76
Expansion EPS = $2.08
b-2. We have:
Recession percentage change in EPS = -36.36%
Expansion percentage change in EPS = 18.18%
Explanation:
Note: See the attached excel file for the calculations of the EPS and the percentage changes in EPS.
From the attached excel file, we have:
a-1. Calculate earnings per share (EPS) under each of the three economic scenarios before any debt is issued.
Recession EPS = $1.49
Normal EPS = $2.13
Expansion EPS = $2.45
a-2. Calculate the percentage changes in EPS when the economy expands or enters a recession.
Recession percentage change in EPS = -30.00%
Expansion percentage change in EPS = 15.00%
b-1. Calculate earnings per share (EPS) under each of the three economic scenarios assuming the company goes through with recapitalization.
Recession EPS = $1.12
Normal EPS = $1.76
Expansion EPS = $2.08
b-2. Given the recapitalization, calculate the percentage changes in EPS when the economy expands or enters a recession.
Recession percentage change in EPS = -36.36%
Expansion percentage change in EPS = 18.18%
Typical farm vehicles go slower and are expensive so you must drive slowly to make sure you don't run into it as Well as be polite
Answer:
A.$42,700 increase
B. Yes
Explanation:
A.
Selling price unit $30
Variable cost unit ( 21)
Logo ( 2)
Contribution margin unit $ 7 x 6,100 units = $42,700 increase
Therefore the increase in net income Maize will realize by accepting the special order, assuming Maize has sufficient excess operating capacity is $42,700
(b) Should Maize Company accept the special order?
YES. Maize company should accept the special order.
Answer: True
Explanation:
The valuation of marketable securities on the balance sheet requires the securities on the balance sheet requires the separation of investment securities into three categories.
The categories are held to maturity which are the securities that are bought and then kept until they mature; the trading securities and then the securities that are available for sale.