16. What size paper should you use for a legal document?

The selling and administrative expense budget of Gullette Corporation is based on the number of units sold, which are budgeted t

Andrej [43]

Answer:

Gullette Corporation

Selling and administrative expense budget for April:

April Budgeted unit sales = 3,700

Variable selling and administrative expense per unit = $4.80

Variable selling and administrative expense = $17,760

Fixed selling and administrative expense = $30,180

Total selling and administrative expense = $47,940

Less Depreciation expense = ($3,450)

Cash disbursements for selling and

administrative expenses $44,490

Explanation:

Data:

Budgeted units sales = 3,700

Variable selling and administrative expense = $4.80 per unit

Budgeted fixed selling and administrative expense = $30,180 per month

Depreciation in fixed expense = $3,450

Gullette Corporation

Selling and administrative expense budget for April:

April Budgeted unit sales = 3,700

Variable selling and administrative expense per unit = $4.80

Variable selling and administrative expense = $17,760

Fixed selling and administrative expense = $30,180

Total selling and administrative expense = $47,940

Less Depreciation expense = ($3,450)

Cash disbursements for selling and

administrative expenses $44,490

b) Under the budgetary process, Gullette Corporation prepares its selling and administrative expense budget to include the variable and fixed elements. The variable element of Gullette's selling and administrative expenses varies per unit with the volume of sales, while the fixed element remains relatively constant in total. The total cash disbursements for selling and administrative expenses do not include depreciation.

6 0

2 years ago

Maddie's shoe store donated hundreds of pairs of shoes to needy children at an inner city school. A news crew reported on the do

chubhunter [2.5K]

Answer:

publicity

Explanation:

Publicity involves creating an excellent reputation for a company's brand name. Publicly arises from positives messages from the media, and other sources such as the internet and word of mouth. An organization engages in activities that create a good relationship with the media and the public to build the desired publicity.

Publicity messages are not paid for, unlike advertising. In the case of Maddie, the business was engaged in a charitable event. The event was captured in the press, and Maddie brand name was mentioned, thus promoting its brand name.

3 0

3 years ago

An increase in a firm's tax rate will__________ if the firm has debt capital in its capital structure:

Temka [501]

Answer:

d. decrease the firm's WACC.

Explanation:

As per WACC formula

WACC = ( Weight of Common Equity x Cost of Common Equity ) + ( Weight of Common Debt x Cost of Common Debt x ( 1 - Tax rate ) ) + ( Weight of Preferred Equity x Cost of Preferred Equity )

By assuming the values to prove the answer

Weights

Common equity = 55%

Preferred Equity = 15%

Debt = 30%

Costs

Common equity = 15%

Preferred Equity = 8%

Debt = 12%

Tax rate is 15%

Placing values in the formula

WACC = ( 55% x 15% ) + ( 30% x 12% x ( 1 - 15% ) ) + ( 15% x 8% )

WACC = 8.25% + 3.06% + 1.2% = 12.51%

Keeping others values constant, Now increase the Tax rate to 25% and placing vlaues in the formula

WACC = ( 55% x 15% ) + ( 30% x 12% x ( 1 - 25% ) ) + ( 15% x 8% )

WACC = 8.25% + 2.7 + 1.2% = 12.15%

Hence the WACC is decreased from 12.51% to 12.15% when the tax rate is increased from 15% to 25% keeping other values constant.

7 0

2 years ago

he Talley Corporation had a taxable income of $345,000 from operations after all operating costs but before (1) interest charges

Setler79 [48]

Answer:

(a) The firm's Income tax liability is $59,771.25.

(b) The firm's after-tax income is $233,478.75.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows

The Talley Corporation had a taxable income of $345,000 from operations after all operating costs but before (1) interest charges of $69,000, (2) dividends received of $17,250, (3) dividends paid of $20,700, and (4) income taxes. Its federal tax rate was 21% (ignore any possible state corporate taxes). Recall 50% of dividends received are tax exempt. What are the firm's income tax liability and its after-tax income?

The explanation to the anwer is now given as follows:

Adjusted taxable income = Income after operation - Interest charges + Taxable dividend received ................. (1)

Where;

Income after operation = $345,0000

Interest charges = $69,000

Taxable dividend received = 50% * $17,250 = $8,625

Substituting the values into equation (1), we have:

Adjusted taxable income = $345,000 - $69,000 + $8,625 = $284,625

(a) Income tax liability = Adjusted taxable income * Tax rate = $284,625 * 21% = $59,771.25

(b) After-tax income = (Adjusted taxable income - Income tax liability) + (50% of dividend received) = ($284,625 - $59,771.25) + (50% * $17,250) = $224,853.75 + $8,625 = $233,478.75

3 0

2 years ago

Burnley and Co., a graphic design firm, has offices in New York, Texas, California, New Mexico, and New Jersey. Each of these of

Furkat [3]

Answer:

Emma Burnley has a wide span of control

Explanation:

Span of control is defined as the number of subordinates that are directly reporting to a manager . It can be narrow or wide depending on the number of reporting employees.

In a situation where a large numbers and layers of employee report to a particular manager , it is called a wide span of control

Employees get more responsibilities with less supervision and get motivated. However , the manager might just get overworked and have trouble making decision.

7 0

2 years ago