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Katyanochek1 [597]
3 years ago
10

Alpaca Corporation had revenues of $270,000 in its first year of operations. The company has not collected on $18,700 of its sal

es and still owes $26,300 on $80,000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $14,500 in salaries. Owners invested $25,000 in the business and $25,000 was borrowed on a five-year note. The company paid $2,400 in interest that was the amount owed for the year, and paid $5,400 for a two-year insurance policy on the first day of business. Alpaca has an effective income tax rate of 40%.Compute net income for the first year for Alpaca Corporation:
a) $ 183,092
b) $ 186,186
c) $ 225,000
d) $ 204,600
Business
1 answer:
liq [111]3 years ago
8 0

Answer:

net income after taxes $102,240

Explanation:

net income:

total revenues                  $270,000

<u>- cost of goods sold         ($80,000)</u>

gross profit                       $190,000

- salaries                            ($14,500)

- interest expense             ($2,400)

<u>- insurance expense          ($2,700)</u>

net income before taxes  $170,400

<u>- income taxes                   ($68,160)</u>

net income after taxes      $102,240

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The Rent per apartment Felice should charge is the PITI plus expected profit, (where PITI is principal, interest, taxes, and insurance) which is <em>$8,516</em>.

Data and Calculations:

Cost of a Duplex Apartment = $165,000

Monthly mortgage payments = $1,520

Deductible mortgage payment = $666

Annual Real Estate Taxes = $1,752

Annual Insurance costs = $1,464

Annual Maintenance costs = $1,230

Annual profit expected = $2,550

Rent to charge = PITI + Profit

= $8,516 ($1,520 - $1,752 - $1,464 - $1,230 + $2,550)

Thus, the Rent per apartment Felice should charge is the PITI plus expected profit, (where PITI is principal, interest, taxes, and insurance) which is <em>$8,516</em>.

Learn more about PITI here: brainly.com/question/1395659

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3 years ago
2. The Fourth of July Company agreed to ship a quantity of fireworks to Behan. After Behan pays in full, he learns that state la
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Answer:

Behan will recover his amount.

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The contract has not been formed as the contract is only enforceable if the contract is legally allowed which means that the selling of fireworks in this case scenario is not allowed and hence Behan and Fourth of July Company are both equally responsible for not committing to such type of agreements. So the company must payback the money as the contract is not enforceable in the jurisdiction.

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Profit of $3000

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The exchange rate of a future contract is usually fixed at the time when the contract is buy 100,000 euros at a futures contract price of $1.22.

The Value in dollars at the time is: $122,000

At the maturity spot rate of the euro is $1.25.

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Since the maturity spot rate is higher, there is a profit of $3000 from speculating with the futures contract.

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The statement is: True.

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A data custodian is responsible for storing and give proper use to specific types of information. This character appears at the governance level of safe-keeping data. Typically, the information the custodian guards is related to businesses and general IT (Information Technology).

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