Answer:
The net income for Year 2 is $ 114,482
Explanation:
Accounting Equation is used in order to calculate the closing capital figure of Year 1 and Year 2:
Assets=Liabilities + Equity.
we can rearrange the formula as Assets-Liabilities = Equity
- So in Year 1. the closing capital is: $910,049-$274,794 = $635,255.
- In Year 2. the closing capital is : $988,160-$234,792 = $ 753,368
Now we can construct an equation to drive net income of year to by means of balancing figure:
Opening capital year 1: $635,255
+ Additional Capital in Year 2: $28,651
-Drawing in year 2: $(25,020)
Net Income(Balancing figure) <u>$114,482</u>
Closing Capital Year 2: $ 753,368
Answer: Debt being less risky than equity and interest payments being tax deductible.
Explanation: Debt securities are the securities having fixed interest rates and a fixed time period to maturity. The debt holders are not considered owners of the company but rather they are the the creditors.
Debt is considered the cheapest source of finance for a number of reasons the main of which is the interest payments on debt could be deducted as expense while computing taxable income .
Answer:
$6,809.04
Explanation:
Calculation to determine what her net pay for the month is
Gross Pay (a) $8,988
Less: Deductions
Social Security Tax $557.26
($8,988 * 6.2%)
Medicare Tax $130.33
($8,988 * 1.45%)
Federal income Tax $1,491.37
Total Deductions (b) $2,178.96
Net Pay (a-b) $6,809.04
($8,988-$2,178.96)
Therefore her net pay for the month is $6,809.04
Answer:
$210,000 is the capital balance of Heflin after acquisition by Mahar
Explanation:
In this question we are asked to calculate the capital balance of Heflin given the data in the above question.
Firstly, we identify the capital account of Heflin before the acquisition. From the question, this is equivalent to a value of $280,000
Now, we calculate the proportionate capital transferred. That is same as 25% of the total; 25/100 * 280,000 = $70,000
The ending capital of Heflin after acquisition would be mathematically = Capital account of Heflin before admission - Ending capital of Heflin after admission= $280,000 - $70,000 = $210,000
Answer:
a.It provides organizational independence.
Explanation:
Budget is a statement of income and expenditure of a certain period. Budgets are useful for forecasting the operating activities and financial position of a business enterprise and it ensures good business practice because they plan for future.
Organizational independence is a state in which an organization is not vulnerable for personnel turnover. Independent Organizations are normally mon profits or non government organizations and they are defined to be a collection of people who to pursue a charitable goal be it local, national or global level. Budgeting is applicable on dependent organizations instead of independent Organizations.
