All categories

3 years ago

Can we treat all small businesses the same? Why or Why not?

Business

1 answer:

Pepsi [2]3 years ago

7 0

Answer:

Depends on what you define as small business, if you mean a mom and pop pharmaceutical store across the road that keeps the money within the family and has every member of the family working in the shop to create an infinite amount of revenue for themselves until they hit a profit, then sure. They contribute tax dollars to the community through supplying jobs and creating cheaper cost for locals, which gives incentive to buy more in bulk and thus creating more tax dollars. Unless you are talking about the man in the apartment building who makes home grade meals and sells them cheap to his community, then no. While he is contributing tax dollars all those dollars aren't going back into the community until he buys something with that money, and the people who spent that money just got a tax free meal that 't go into the community didn't.

Explanation:

You might be interested in

How can the price of baseball bats be affected by the demand for paper

andrey2020 [161]

Answer:

- Higher demand for paper, less wood for bats, the higher price of bats, OR less supply of bats.(have to pay a higher price for wood, and if price doesn't change, they have to make less).

- Higher demand for cheese, cows kept alive, leather is scarce, the higher price of mitts. (less supply because more of the resource is allocated to the milk instead of the leather).

Explanation:

The baseball bats, as well as, paper both, are made employing the resources generated from wood resources. Similarly, the catcher's mitts and cheese are made using the cows as the resource. If two products are made employing similar resources, an increase in the price of one leads to an increase in the other as well. This occurs primarily due to the fact that if the price of the first good increases, the producer of that good is likely to pay more to get the resource and sell the good at a higher price later. Thus, the other producer will either buy less and produce less or spend more to get the resource as per his need.

3 0

3 years ago

In the fall, Jay Thompson decided to live in a university dormitory. He signed a dorm contract under which he was obligated to p

Vesna [10]

Answer:

The cheapest alternative is: $300 a month immediately.

Explanation:

Giving the following information:

The dorm cost was $5000 for the two semesters

Jay had already paid a month after he moved into the dorm.

Jay estimates his food cost per month is $500 if he lives in the dorm and $450 if he lives in an apartment.

His share of the apartment rent and utilities will be $390 per month.

Each semester is 4.5 months long.

Alternative A:

One student offered to move in immediately and to pay Jay $300 per month for the eight remaining months of the school year.

Income= 300*8= 2400

Apartment rent= (3120)

Food= (3600)

Total= (4320)

Alternative B:

A second student offered to move in the second semester and pay $2500 to Jay.

Income= 2500

Dorm rent= (5000/9)*3.5= (1944)

Apartment rent= (1755)

Dorm food= 500*3.5= (1750)

Apartment food= (2025)

Total= (4974)

Alternative C:

Stay in the dorms

Dorm rent= (4444.44)

Dorm Food= (4000)

Total= $8444.44

<u>The cheapest alternative is A.</u>

8 0

3 years ago

Flint Inc. issued $3,790,000 of 10%, 10-year convertible bonds on June 1, 2020, at 99 plus accrued interest. The bonds were date

gulaghasi [49]

Answer:

A. Dr Interest Payable $63,167

Dr Interest expense $127,617

Cr Discount on Bonds payable $1,284

Cr Cash $189,500

B. Dr Bonds payable $1,421,250

Cr Discount on Bonds payable $13,008

Cr Common Stock $612,000

Cr Paid-in capital in excess of par- Common Stock $796,242

Explanation:

(a) Preparation of the entry to record the interest expense at October 1, 2020. Assume that accrued interest payable was credited when the bonds were issued.

Dr Interest Payable $63,167

[($3,790,000*.10)/2*(2/6)]

Dr Interest expense $127,617

[($3,790,000*.10)/2*(4/6) + $1,284]

Cr Discount on Bonds payable $1,284

($321*4)

Cr Cash $189,500

[ ( $3,790,000*.10)/2]

(To record interest expense at October 1, 2020.)

Calculation for the discount per month

First step is to calculate the remaining months

Months remaining= (10 years *12-2)

Months remaining=118 months

Second step is to calculate the Total discount

Total Discount= $3,790,000-($3,790,000*.99)

Total discount=$3,790,000-$3,752,100

Total discount=$37,900

Now let calculate the discount per month

Discount per month=($37,900/118)

Discount per month=$321

(b) Preparation of the entry to record the conversion on April 1, 2021

Dr Bonds payable $1,421,250

Cr Discount on Bonds payable $13,008

Cr Common Stock $612,000

(34,000*$18)

Cr Paid-in capital in excess of par- Common Stock $796,242

[$1,421,250-($13,008+$612,000)]

(To record conversion of bond into 34,000 shares.)

Calculation for Unamortized bond discount

Discount of the bonds $14,213

($37,900*(3/8))

Less Discount amortized ($1,205)

[($37,900/118)*10 years*(3/8)]

Unamortized bond discount $13,008

($14,213-$1,205)

8 0

3 years ago

Tons Beauty LLC uses the double-declining balance method for depreciation on its computers. Which item is not needed to compute

erica [24]

Answer:

Residual or salvage value isn't needed in the calculation of deprecation expense using the double declining method.

Explanation:

Deprecation expense using the double declining method = [2 ×(1/useful life)] × cost of the asset

I hope my answer helps you

8 0

3 years ago

Lardo Inc. plans to build a new manufacturing plant in either Country X or Country Y. It projects gross revenue in either locati

Tom [10]

Answer:

Following are the solution to the given points:

Explanation:

For point a:

After-tax profit for each country.

For Country X:

$Particulars \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ Amount(\$)\\\\Gross \ \ Revenue\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 4,000,000\\\\ Operating\ \ Expenses \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 1,500,000\\\\ Pre-tax \ \ Profit \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 2,500,000 \\\\$

$Tax \ [ 2,500,000 \times 20\% \ ] \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 500,000\\\\ After-tax\ \ profit\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 2,000,000$

For Country Y:

$Particulars \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ Amount(\$)\\\\Gross \ \ Revenue\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 4,000,000 \\\\Operating\ \ Expenses \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 1,800,000\\\\$

$Pre-tax\ \ Profit \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 2,200,000\\\\Tax\ [40,00,000 \times 10\%] \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 400,000 \\\\After-tax\ \ profit \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 1,800,000$

For point b:

For Country X:

Lardo is expected to establish its new plant in Country X, because Country X's after tax income is higher than Country y's after-tax income [$1,800,000].

3 0

3 years ago