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3 years ago

All sources of income is also known as which of the following?

2 answers:

5 0

All sources of income is also known as gross income. Correct answer: A It is the total income from all sources before deductions or taxes.For companies, gross income can also be known as gross profit . This measure can be used to determine whether an individual is a worthy borrower or renter.

Juliette [100K]3 years ago

3 0

The answer i would choose is A

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Philadelphia Company has the following information for March: Sales $450,000 Variable cost of goods sold 240,000 Fixed manufactu

borishaifa [10]

Answer:

a.$210,000

b. $158,000

c. $53,000

Explanation:

Calculation to determine the March (a) manufacturing margin, (b) contribution margin, and (c) income from operations for Philadelphia Company.

A)Calculation to determine the March manufacturing margin

Using this formula

Manufacturing Margin =(Sales – Cost of Goods Sold)

Let plug in the formula

Manufacturing Margin=450,000 – 240,000

Manufacturing Margin= $210,000

(B)Calculation to determine contribution margin,

Using this formula

Contribution Margin =(Gross Manufacturing Margin – Variable Expenses)

Let plug in the formula

Contribution Margin=210,000 – 52,000

Contribution Margin= 158,000

(C)Calculation to determine the March income from operations for Philadelphia Company

Using this formula

Income from Operations= (Sales – All expenses)

Let plug in the formula

Income from Operations= 450,000 – 397,000

Income from Operations = 53,000

Therefore the March (a) manufacturing margin, (b) contribution margin, and (c) income from operations for Philadelphia Company are:

a.$210,000

b. $158,000

c. $53,000

3 0

3 years ago

Katie just turned 25 today. By her 60th birthday she would like to have $1,000,000 saved. She plans to invest equal annual payme

AlexFokin [52]

Answer:

The correct option is b. $6,304.11.

Explanation:

This can be calculated using the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:

FV = M * (((1 + r)^n - 1) / r) ................................. (1)

Where,

FV = Future value or the amount to have on her 60th birthday = $1,000,000

M = Annual payment or amount she needs to invest each year = ?

r = Interest rate = 8%, or 0.08

n = number of years beginning with her 27th birthday and ending on her 60th birthday = 60 - 27 + 1 = 34

Substituting the values into equation (1) and solve for M, we have:

$1,000,000 = M * (((1 + 0,08)^34 - 1) / 0.08)

$1,000,000 = M * 158.626670073155

M = $1,000,000 / 158.626670073155

M = $6,304.11014452251

Rounding to 2 decimal places, we have:

M = $6,304.11

This implies Katie needs to invest $6,304.11 each year to have exactly $1,000,000 by her 60th birthday.

Therefore, the correct option is b. $6,304.11.

4 0

3 years ago

On January 1, 2019, Woodstock, Inc. purchased a machine costing $40,000. Woodstock also paid $1,000 for transportation and insta

irinina [24]

Answer:

annual depreciation expense = $6000

so correct option is d. $6,000

Explanation:

given data

machine costing = $40,000

transportation and installation = $1,000

useful life = 6 years

residual value = $5,000

to find out

How much is the annual depreciation expense

solution

we get here first Cost of machine that is

Cost = $40,000 + $1000

cost = $41000

so depreciable base will be here

Depreciable base = cost - residual value

Depreciable base = 41000 - 5000

Depreciable base = $36,000

so annual depreciation expense is

annual depreciation expense = $\frac{36000}{6}$

annual depreciation expense = $6000

so correct option is d. $6,000

3 0

3 years ago

Find the amount to which $625 will grow under each of the following conditions. Do not round intermediate calculations. Round yo

ella [17]

Answer:

Results are below.

Explanation:

<u>To calculate the future value, we need to use the following formula:</u>

FV= PV*(1+i)^n

a) i= 0.04 annually compounded

n= 5

PV= $625

FV= 625*(1.04^5)

FV= $760.41

b) i= 0.04/2 = 0.02 semiannually compounded

n= 5*2= 10

PV= $625

FV= 625*(1.02^10)

FV= $761.87

c) i= 0.04/4 = 0.01 quarterly compounded

n= 5*4= 20

PV= $625

FV= 625*(1.01^20)

FV= $762.62

d) i= 0.04/12 = 0.0033 monthly compounded

n= 5*12= 60

PV= $625

FV= 625*(1.003333^60)

FV= $763.11

7 0

3 years ago

Green Inc. made no adjusting entry for accrued and unpaid employee wages of $38,000 on December 31. This error would Multiple Ch

Naya [18.7K]

Answer:

The answer is B. Overstate net income by $38,000.

Explanation:

Accrued expense is an expense that has been enjoyed or incurred but has been paid for. Examples of an accrued expense are unpaid wages/salary, unpaid electricity bill etc.

Usually, the adjusting entry for accrued expense is to debit the expense and debit increases expense while credit decreases it. Since there is no adjusting entry, that means no expense is being recognized on the income statement for this transaction. Hence, the net income increases (overstated). because ordinarily expense reduces net income.

4 0

3 years ago