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xxMikexx [17]
3 years ago
8

Last year, Bad Tattoo Co. had additions to retained earnings of $4,780 on sales of $95,560. The company had costs of $75,720, di

vidends of $2,980, and interest expense of $2,040. If the tax rate was 34 percent, what the depreciation expense?
a. $6,439.
b. $13,285.
c. $7,390.
d. $7,760.
e. $6,042.
Business
1 answer:
fredd [130]3 years ago
8 0

Answer:

e. $6,042

Explanation:

Net income of Bad tattoo co. = Addition of retained earnings + Dividends

= $4,780 + $2,980

= $7,760

Income before tax of Bad tattoo Co = Net income / (1-tax rate)

= $7,760 / (1-34%)

= $7,760 / 0.66

= $11,758

But,

Income before tax = Sales - Costs

- Depreciation expense - Interest expense

$11,758 = $95,560 - $75,720 - Depreciation expense - $2,040

$11,758 = $19,840 - Depreciation expense - $2,040

Depreciation expense = $19,840 - $11,758 - $2,040

Depreciation expense = $6,042

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Pina Corporation entered into an operating lease agreement to lease equipment from Badger, Inc. on January 1, 2017. The lease ca
posledela

Answer:

= $80,273

Explanation:

Value of the right of use asset = Value of lease liability - cash incentive received + costs incurred for lease

                  = $82,773 -$ 6,000 + $3,000 + $500

                     =$80,273

4 0
2 years ago
Ou buy 6 pounds of apples for $33. what is the cost of 10 pounds of apples?
KiRa [710]
Each pound of apple would be $5.50. you get that by dividing 33 by 6. so $5.50 by 10 pounds is $55
3 0
3 years ago
The mission statement of your business should contain all of the following elements except the
Zarrin [17]
C. expected profit margins
the mission statement provides information about the company as to who, why and how they plan to operate
7 0
2 years ago
Read 2 more answers
2.3 The Ledger and Posting
blsea [12.9K]

The net change in the Cash account balance from these three transactions is $30,000

What is the company's net change in cash account balance?

The net change in company's cash balance is the excess of its cash inflows from sources minus its cash outflows from all sources, in other words, the net change in cash balance from the three transactions is the funds raised long-term debt issuance and the amounts paid for equipment and raw materials

net change in cash balance=$200,000-$150,000-$20,000

net change in cash balance=$30,000

Find out more cash flow statement on:brainly.com/question/14942025

#SPJ1

8 0
1 year ago
Item32 time remaining 46 minutes 2 seconds 00:46:02 item 32 item 32 time remaining 46 minutes 2 seconds 00:46:02 during a recent
abruzzese [7]

The variable cost is calculated as -

Sales - Variable cost = Contribution Margin

Given, Contribution Margin = 25 %

Variable cost = 1 - Contribution Margin = 1 - 25 % = 75 %

25 % of Sales = Contribution Margin = $ 400,000

Sales = $ 400,000 ÷ 25 %

Sales = $ 1,600,000

Variable costs = 75% of Sales = 75 % × $ 1,600,000 = $ 1,200,000

3 0
3 years ago
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