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2 years ago

A company reports the amounts below in its statement of cash flows.

Business

1 answer:

ludmilkaskok [199]2 years ago

3 0

Answer:

C. 1.20

Explanation:

The total net cash flow consist of net cash flows from 3 activities namely; Operating activities, Investing activities and Financing activities.

Let the cash flows from operating activities be y

Therefore,

123,000 = y + 66,480 + 30,780

y = 123,000 - 66,480 - 30,780

y = 25,740

Current liabilities = (23,400 + 19,500)/2

= 21450

The company's operating cash flows to current liabilities ratio

= 25,740 /21450

= 1.20

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McLin, Inc., is a calendar year S corporation. Its AAA balance is zero. Determine the tax aspects of the following transactions.

S_A_V [24]

Answer:

$10,000

Explanation:

Given that:

McLin holds $90,000 of AEP, this implies what is salary is made of;

Tobias, the sole shareholder, has an adjusted basis of $80,000 in his stock.

Tobias is paid a $90,000 salary income.

Ignore the 20% QBID

We are to determine the tax aspects of the transactions

Since the company receives a $90000 for salary expense. Thus Tobias basis is zero, then :

The tax aspect of the transaction is : ($90000 - $80000)

The tax aspect of the transaction = $10,000

7 0

3 years ago

Hardy Inc. has two operating departments (1 and 2) and is considering renting a new machine to help automate the printing proces

gayaneshka [121]

Answer:

$6,900

Explanation:

When you use the incremental cost allocation method, you must rank cost activities and how they will be allocated. In this case, department 2 is the primary user, and therefore, rental costs must be allocated first to them. Rental costs will be allocated at a $25/hour rate.

Since department 1 is the next user, 100 hours will be allocated using the same rate as department 2, but the next 200 hours will be allocated at the lower $22/hour rate. Total rental cost allocation to department 1 = (100 x $25) + (200 x $22) = $2,500 + $4,400 = $6,900

5 0

3 years ago

SynVens, a major retail chain in Hungary, is planning to diversify. It plans to enter the Textiles industry and aims to be first

lisov135 [29]

I think the answer is b

3 0

3 years ago

Hank, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship. In late December, he performed $

ICE Princess25 [194]

Answer:

Hank

a. After-tax income if bill is sent in December

= $30,000 * 0.68 (1 - 0.32) = $20,400

Return on investment of $20,400 * 1.01% = $20,604

b. if bill is sent in January

= $30,000 * 0.65 (1 - 0.35) = $19,500

c. Hank should send the bill in December.

d. with marginal tax rate = 24% next year, after-tax income

= $30,000 * 0.76 (1 - 0.24) = $22,800

e. He should send his bill in January.

Explanation:

a) Data:

Value of legal services for a client = $30,000

Marginal tax rate = 32% this year and 35% or 24% next year

After-tax rate of return = 12%

b) The after-tax income represents the amount of Hank's revenue that remains after tax has been deducted or paid. It is what belongs to Hank after the taxman has taken his cut.

7 0

2 years ago

PLEASE HELP RECORD THIS ENTRIES IN THEIR RESPECTIVE JOURNALS

julsineya [31]

Yess i need help on this too

3 0

3 years ago