Answer:
b. depreciation reduces both the pretax income and the net income.
Explanation:
A financial statement is a written report that quantitatively describes a firm's financial health. Under the financial statements is a cash-flow statement, which is used to record the cash inflow and cash equivalents leaving a business firm.
Cash flow statement, also known as the statement of cash flows, contains financial information about operating, financial and investing activities.
An income statement comprises of the financial information about the income and expenses of an organization over a specific period of time.
Depreciation can be defined as the reduction of cost of a fixed asset systematically until the value of the asset becomes zero.
The Modified Accelerated Cost Recovery System (MACRS) can be defined as a depreciation system that avails business owners or companies the ability and opportunity to recover or recoup the cost basis of physical assets that have experienced deterioration over a specific period of time.
In the United States of America, the Modified Accelerated Cost Recovery System (MACRS) is used mainly for tax purposes because it gives room for faster depreciation of a physical asset in its first years or initial usage and reduces depreciation as it is being used over a long period of time.
Generally, it can be deduced from an income statement that depreciation reduces both the pretax income and the net income of a business firm or an organization.
Answer:
The answer is E. 12.22 percent.
Explanation:
The calculation for common-size percentage is: (Amount / Base amount) x 100.
On the balance sheet or financial position the base is total assets and on the income statement the base is net sales.
The common-size statement value of inventory will be:
Value of inventory/total assets.
Total assets = $2,600 + $920
=$3,520
Value of inventory = $430
Therefore, we have:
($430/$3,520) x 100
12.22percent.
Answer:
Roth IRA
Explanation:
Based on the information provided in this scenario it can be said that the individual's best option would be to make a $5,000 contribution to a Roth IRA fund. This is a retirement fund that can be will provide will continue to grow exponentially throughout the years and the individual can withdraw that money when they turn 60 years old. At this point the money is completely tax free.
The budget constrain is how much of each good can Joe's buy and it's given by:
Income = P_f * Q_f +P_s * Q_s
P_f = Price_of_Food
Q_f = Quantity_of_Food
P_s = Price_of_Shelter
Q_s = Quantity_of_Shelter
In case a):
300 = 5*Q_f(a) + 100*Q_s
in case b):
300 = 10*Q_f(b) + 100*Q_s
To draw each line, you can make a graphic in which the x axis is Q_s and y axis is Q_f
set Q_f = 0 and solve for Q_s which gives => Q_s = 3 so, in the x axis the line will start in Q_s = 3
the same, and solve for Q_f and it'll give =>
Q_f(a) = 60
Q_f(b) = 30
So, from the start in x axis in Q_s = 3 you draw the line (a) to the y axis Q_f(a) = 60 and you draw the line (b) to the y axis Q_f(b) = 30
To get the oportunity cost you have to divide the cost of what is given up (food) by what is gained (shelter).
Oportunity_Cost_Food(a) = 5/100 = 0.05
Oportunity_Cost_Food(b) = 10/100 = 0.10
As you can see, the oportunity cost of food increase
Alcohol proof is a measure how much of alcohol ( or ethanol ) is contained in a beer ( same as wine, whiskey, etc ). In the US, alcoholic proof is defined as twice the percentage ( in the UK percentage times 1.75 ).Therefore: 5 * 2 = 10 ( or: 5 * 1.75 = 8.75 ).Answer: It would have a proof of 10.
