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3 years ago

What is universal default?

Business

1 answer:

nikitadnepr [17]3 years ago

6 0

Answer:

Universal default is the term for a practice in the financial services industry in the United States for a particular lender to change the terms of a loan from the normal terms to the default terms (i.e. the terms and rates given to those who have missed payments on a loan) when that lender is informed that their customer has defaulted with another lender, even though the customer has not defaulted with the first lender.

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Walker Clothing Store has a balance in the Accounts Receivable account of $390k at the beginning of the year and a balance of $4

lesantik [10]

Answer: The average collection period of the receivables in terms of days was 73 days.

Explanation:

Given that,

Accounts Receivable at the beginning of the year = $390,000

Accounts Receivable at the end of the year = $410,000

Net credit sales during the year = $2,000,000

Average collection period of the receivables in terms of days:

Average accounts receivables = $\frac{410000 + 390000}{2}$

= 4,00,000

Net credit sales = $\frac{2000000}{400000}$ = 5

∴ Accounts receivable days = $\frac{365}{5}$

= 73 days

The average collection period of the receivables in terms of days was 73 days.

4 0

3 years ago

Janice is the sole owner of Catbird Company. In the current year, Catbird had operating income of $100,000, a long-term capital

Ahat [919]

Answer / Explanation:

To answer this question considering the tax entity and how Janice will report this information on her individual tax return, We need to consider the fact that different tax entity are categorized by its unique report and information.

So to properly answer these question, we will have to assume three (3) different scenario which are: (1) Is it a Limited Liability Company, Is it a Small business corporation, Is it an AC Corporation.

We should also note that this segregation is need as each type of corporation tax are dealt with differently thus enabling us treat the question properly in respect to tax entity and as regards to how Janice will report the information on her individual tax return.

Consequentially,

a. If Catbird Company is an LLC: A single-member LLC is taxed as a proprietorship. Thus, Janice will report the $100,000 operating income (Schedule C), $15,000 long-term capital gain (Schedule D), and if she itemizes, $5,000 charitable contribution (Schedule A) on her tax return. The $70,000 withdrawal would have no effect on Janice's individual tax return.

b. If Catbird Company is an S corporation: An S corporation is a tax reporting entity (Form 1120S), and its income, gains, deductions, and losses are passed through to and reported by the shareholders on their tax returns. Separately stated items (e.g., long-term capital gain and charitable contribution) retain their character at the shareholder level. Consequently, Janice will report the $100,000 operating income (Schedule E), $15,000 long-term capital gain (Schedule D), and if she itemizes, $5,000 charitable contribution (Schedule A) on her tax return. The $70,000 withdrawal would have no effect on Janice's individual tax return.

c. If Catbird Company is a C corporation: A C corporation is a separate taxable entity, and its taxable income has no effect on the shareholders until such time a dividend is paid. When dividends are paid, shareholders must report dividend income on their tax returns. Thus, Catbird Company will report taxable income of $110,000 ($100,000 operating income + $15,000 LTCG - $5,000 charitable contribution) on its Form 1120. Corporations receive no preferential tax rate on long-term capital gains. Janice will report dividend income of $70,000 (Schedule B) on her individual tax return.

8 0

3 years ago

The budgeted variable selling and administrative expense is calculated by multiplying the budgeted unit sales by the variable se

postnew [5]

Answer: True

Explanation:

Variable selling and administrative expenses increase with the number of sales so in order to get them, one needs to multiply the number of sales by the variable and administrative expenses.

This also goes for the budgeted variable selling expenses. To find out these costs, multiply the expected variable and admin expenses by the budgeted number of sales. The amount you get will show the amount of variable expenses to budget based on the sales you budgeted.

3 0

2 years ago

Oakleaf Manufacturing incurs costs of $75 ($67 variable and $8 fixed) to make a product that normally sells for $120. A customer

aleksandr82 [10.1K]

Answer:D. reject the offer because it will produce a net loss $21,000

Explanation:

Net income or loss is the total of firm's income less it's total cost( fixed and variable) . The contract will result in a loss $5 per unit which multiply by the total units of 4200 gives $21,000

7 0

3 years ago

All businesses encounter difficulties and must deliver bad news. Bad news can be disappointing, irritating, and even maddening t

Stella [2.4K]

Answer:

The correct option is A

Explanation:

In order to reduce the bad feelings which are linked with the negative messages, one must make sure that the receiver knows the reason for the rejection and feels the news was sensitive and also believes that the matter was handled carefully and fairly.

A negative message which is insincere could be irritating, maddening and frustrating to the receiver. So, the message should not lead the reader to trust or believe.

5 0

3 years ago