Function keys provide shortcuts for specific tasks a. True b. False

Jim has a house payment of $2,000 per month of which $1,700 is deductible interest and real estate taxes with the remaining $300

Vaselesa [24]

Answer:

$1,490

Explanation:

Interest expense is tax deductible in the computation of after tax cost. Therefore, Jim will enjoy tax-induced saving on the $1,700 interest portion of his monthly house payment.

Tax saving on the interest payment is computed as follows:

$1,700 * 30% tax rate = $510.

Therefore, after-tax cost of Jim's house payment

= total monthly payment, less tax saving on interest

= $2,000 - $510

= $1,490.

4 0

4 years ago

Suppose a whale-watching trip in alaska costs orca-spotters tours $800 per run. each whale-watching trip can hold 25 tourists, m

zimovet [89]

Well if they are trying to maximize profits then they need to charge more per seat. At 25 seats costing $32.00 per seat you will break even. If the price is not altered then they will not make a profit. I would up the price at least 30%-50% so that they will make a respectable amount of profit on each seat.

4 0

3 years ago

Preston Woods has 17,500 shares of stock outstanding along with $408,000 of interest-bearing debt. The market and book values of

professor190 [17]

Answer:

The enterprise value is $926,450

Explanation:

First, we need to calculate Earnings per share (EPS) as follow

EPS = Net profit / Numbers of outstanding shares = (

Where

Net Profit = Sales x Profit Margin = $697,000 x 6.8% = $47,396

Numbers of outstanding shares = 17,500 shares

Placing values in the formula

EPS = $47,396 / 17,500 shares = $2.71 per share

Now calculate market capitalization as follow

Market Capitalization = Price of stock x Numbers of outstanding shares

where

Price of stock = Price earning ratio x earning per share = 11.8 x $2.71 = $31.98

Numbers of outstanding shares = 17,500 shares

Placing values in the formula

Market Capitalization = $31.98 x 17,500 = $559,650

Enterprise value can be calculated using the following formula

Enterprise Value = Market capitalization + Value of debt - Cash

Where

Market capitalization = $559,650

Value of debt = $408,000

Cash = $41,200

Placing values in the formula

Enterprise Value = $559,650 + $408,000 - $41,200

Enterprise Value = $926,450

5 0

3 years ago

All of the following are related to a proposed project. Which one of these should be included in the cash flow at Time 0?

NeTakaya

Answer: The correct answer is Choise A.

Explanation: When you create a cash flow you need to only include current cash inflows and outflows. Of the options that are available, the only one of the choices that would be included in the cash flow at start up is the initial loan obtained to finance the project.

3 0

4 years ago

The ledger of Umatilla, Inc. on March 31, 2022, includes the following selected accounts before adjusting entries.

alexgriva [62]

Answer:

1. Dr Insurance expence $300

Cr Prepaid insurance $300

2. Dr Supplies expense $1,600

Cr Supplies Asset $1,600

3. Dr Depreciation expense $200

Cr Accumulated Depreciation $200

4. Dr Unearned Service Revenue $4,000

Cr Service revenue $4,000

Explanation:

Preparation for the adjusting entries for the month of March.

1. Dr Insurance expence $300

Cr Prepaid insurance $300

(Being to record expired Insurance)

2. Dr Supplies expense $1,600

Cr Supplies Asset $1,600

($2,500+$900)

(Being to record Supplies on hand)

3. Dr Depreciation expense $200

Cr Accumulated Depreciation $200

(Being to record Depreciation of equipment)

4. Dr Unearned Service Revenue $4,000

Cr Service revenue $4,000

(2/5*$10,000)

(Being to record two-fifths of the unearned service revenue)

6 0

3 years ago