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tester [92]
3 years ago
7

An inexperienced accountant for Ayayai Corp. showed the following in the income statement: income before income taxes $250,000 a

nd unrealized gain on available-for-sale securities (before taxes) $85,000. The unrealized gain on available-for-sale securities and income before income taxes are both subject to a 25% tax rate. Prepare a correct statement of comprehensive income.
Business
1 answer:
Veseljchak [2.6K]3 years ago
8 0

Answer:

                          Ayayai Corp.

      Statement of Comprehensive Income

            For the Year Ended xxx, 202x

Net income                                                $187,500

Other comprehensive income:

<u>Unrealized gain on AFS securities           $85,000</u>

Comprehensive income                          $272,500

Explanation:

In order to prepare a statement of comprehensive income we first need to determine net income after taxes = $250,000 x (1 - 25%) = $187,500

Unrealized gains or losses are not taxed until they are actually realized (either make profit or lose money).

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Assume that you are the project manager for the construction of a 15-mile road. Further, assume that the work is uniformly distr
AfilCa [17]

Answer:

$200,000

Explanation:

This involves revenue recognition based on percentage of work completed (cost to completion technique). Revenue to be recognized per time is assessed based on the level of cost incurred compared with the total cost to be incurred.

Given that the total approved budget for the project is $600,000, If at the end of the first three weeks of work, $160,000 has been spent, and five miles of road have been completed for a  a 15-mile road, the earned value of the project at the end of the first three weeks

= 5/15 * $600,000

= $200,000

3 0
3 years ago
The Chief Information Officer (CIO) and the Managing Director (MD) of Illustrious Limited recently had the following conversatio
-Dominant- [34]

Answer:

Illustrious Limited

a) I sympathize with the MD.  He noted "We have been through these types of projects before, and what always ends up happening is that we do not get the new system we are promised. Instead, we get a modified version of the old system."  The implication of his assertion is that something is missing in the way the CIO and her team had been handling system development projects in the past.  Even the CIO acknowledged the MD's assertions by assuring "that this will not happen this time."  In the past, the system development team had neglected understanding "what is working well and what is not."  This should not be the case in any good system development.  Preliminary analysis or investigation should uncover users' requirements and then conduct a thorough system analysis before the design and other stages are carried out in an iterative process.

b) I would recommend SCRUM instead of the Waterfall methodology.  With Scrum, the system development project is teamwork.   The team is held accountable and SCRUM utilizes iteration to achieve well-defined goals.  The SCRUM framework "begins with a simple premise, starting with what can be seen or known before it tracks progress and tweaks as necessary," to achieve set goals defined by users' requirements.

Explanation:

a) System Development is a process that follows a system development life cycle (SDLC) methodology and involves these seven stages: requirement analysis, system analysis, system design, development or programming, testing, implementation and documentation, and evaluation and support.

b) SCRUM is a framework in SDLC which follows "a set of meetings, tools, and roles that work in concert to help teams structure and manage their work."  SCRUM has been described as "an agile way to manage a project," especially software development because of its "iterative and flexible approaches."

c)  Waterfall model, on the other hand, follows linear sequential phases of conception, initiation, analysis, design, construction, testing, deployment, and maintenance, and each stage depends on the deliverables of the previous stage.  This is why "in software development, it tends to be among the less iterative and flexible approaches, as progress flows in largely one direction ("downwards" like a waterfall) through the phases."

4 0
3 years ago
Jason jones has been asked to assemble an eight-member self-managed work team of experienced employees to work on a project that
Jlenok [28]

Answer:

Explanation:

Align and Track Organizational, Team, and Individual Goals with Frequent Check-Ins. Provide Managers The Tools To Give Feedback While Creating A Culture Of Happier Employees. Real-Time Coaching. Recognition & Rewards. Pulse Suveys. Features: Check-Ins, Sync-Ups.

6 0
2 years ago
Laramie Trucking's CEO is considering a change to the company's capital structure, which currently consists of 25% debt and 75%
deff fn [24]

Answer:

15.29%

Explanation:

Calculation to determine What would be the estimated cost of equity if the firm used 60% debt

First step is to calculate the Original beta using this formula

Original beta = (rs-rRf)/ RPM

Let plug in the formula

Original beta= (11.5%- 5%)/6%

Original beta= 6.5%/ 6%

Original beta= 1.083

Second step is to calculate the Original D/E using this formula

Original D/E = D/A / (1-D/A)

Let plug in the formula

Original D/E= .25/ (1-.25%)

Original D/E= .333

Third step is to calculate the Unlevered Beta using this formula

Unlevered Beta = Bu = Bl / 1+((1- Tax rate) x (D/E)

Let plug in the formula

Unlevered Beta= 1.083/1+((1-.4) x .333

Unlevered Beta=.90

Fourth step is to calculate the Target using this formula

Target =D/e

Let plug in the formula

Target = .6/.4

Target= 1.5

Fifth step is to calculate the New Beta using this formula

New Beta = bu* (1+(D/E)(1- tax rate)

Let plug in the formula

New Beta = .90 *(1+(1.5)*(.6)

New Beta = 1.71

Now let calculate the estimated cost of equity using this formula

rs = rRF + new beta (RPm)

Let plug in the formula

rs= 5% + 1.71*6

rs= 15.29%

Therefore What would be the estimated cost of equity if the firm used 60% debt is 15.29%

4 0
2 years ago
write atleast 2 policies that a company could use to decide which customers to offer credit to? hurry im in a rush to a bday par
Stolb23 [73]

Answer:

Companies could offer credit to customers who pay and have beneficial rewards.

Companies could also offer credits to senior citizens as a promotional thing

Explanation:

3 0
2 years ago
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