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lidiya [134]
3 years ago
15

Companies generate income from their "regular" operations and from other sources like interest earned on the securities they hol

d, which is called non-operating income. Lindley Textiles recently reported $12,500 of sales, $7,250 of operating costs other than depreciation, and $1,000 of depreciation. The company had no amortization charges and no non-operating income. It had $8,000 of bonds outstanding that carry a 7.5% interest rate, and its federal-plus-state income tax rate was 40%. How much was Lindley's operating income, or EBIT?
Business
1 answer:
SCORPION-xisa [38]3 years ago
6 0

Answer:

$4,250

Explanation:

The computation of the operating income or EBIT is shown below:

Earning before interest and taxes = Sales reported - operating cost  other than depreciation - depreciation expense

= $12,500 - $7,250 - $1,000

= $4,250

We simply deduct the operating cost and the depreciation expense from the sales reported to arrive the earning before interest and taxes

All other information which is given in the question is not relevant. hence, ignored it

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Semmy [17]

Answer: B

Or Data is charted by two different types of data.

Explanation:

I got it right

3 0
2 years ago
After evaluating Null Company’s manufacturing process, management decides to establish standards of 2 hours of direct labor per
Arisa [49]

Answer:

Explanation:

The computation is shown below:

For October month:

The computation of the direct labor price variance is shown below:  

= Actual Hours × (Actual rate - standard rate)  

= 11,500 × ($180,550 ÷ 11,500 hours - $15.50 per hour)  

= 11,500 × ($15.70 - $15.50)

= $2,300 unfavorable

The computation of the direct labor efficiency variance is shown below:  

= Standard Rate × (Actual hours - Standard hours)  

= $15.50 per hour × (11,500 hours - 6,100 units × 2 hours)  

= $15.50 per hour × 700 hours

= $10,850 favorable

The computation of the total direct labor cost variance is shown below:

= Direct labor rate variance + direct labor efficiency variance

=  $2,300 unfavorable  +  $10,850 favorable

= $8,550 favorable

For November month:

The computation of the direct labor price variance is shown below:  

= Actual Hours × (Actual rate - standard rate)  

= 22,500 × ($355,500 ÷ 22,500 hours - $15.50 per hour)  

= 22,500 × ($15.80 - $15.50)

= $6,750 unfavorable

The computation of the direct labor efficiency variance is shown below:  

= Standard Rate × (Actual hours - Standard hours)  

= $15.50 per hour × (22,500 hours - 6,500 units × 2 hours)  

= $15.50 per hour × 9,500 hours

= $147,250 favorable

The computation of the total direct labor cost variance is shown below:

= Direct labor rate variance + direct labor efficiency variance

=  $6,750 unfavorable  +  $147,250 favorable

= $140,500 favorable

3 0
3 years ago
An organization that wants to comply with​ _______ requirements must develop a total management system for meeting environmental
alexandr402 [8]

The International Organization for Standardization (ISO) is an international standard-setting body composed of representatives from various national standards organizations.

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3 years ago
According to proponents of the Hawthorne effect, Multiple Choice giving less attention to employees increases worker productivit
o-na [289]

Answer:

giving more attention to employees increases worker productivity, if they think managers care about them.

Explanation:

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8 0
3 years ago
Why should everyone in a market have adequate information about market conditions?
sergeinik [125]
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7 0
3 years ago
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