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3 years ago

Three (3) State taxes and briefly describe each

1 answer:

8 0

The three state taxes are what you earn, taxes on what you buy, and taxes on what you own.

Earn: individual income taxes, corporate income taxes, payroll taxes, and capital gains taxes;

Buy: sales taxes, gross receipts taxes, value-added taxes, and excise taxes;

Own: property taxes, tangible personal property taxes, estate, and inheritance taxes, and wealth taxes.

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The CAPM is a multi-period model that takes account of differences in securities' maturities, and it can be used to determine th

stich3 [128]

Answer:

B. False

Explanation:

Capital Asset Pricing Model (CAPM) is an indicator that shows the relationship between the expected return and the risk of investing in a particular security.

This model is used to examine securities and their given prices, haven stated the expected rate of return and cost of capital involved.

CAPM is used by investors to make wise decision before investing their funds in a particular security.

3 0

3 years ago

Do you think it is easier to increase or decrease government spending

Anna35 [415]

It is much easier to increase government spending, because it gives a temporary boost, whereas decreasing it would take away the benefits you had before, and might mess up other "things" that relied on that part you just removed to decrease government spending.

4 0

2 years ago

Effect of Transactions on Cash Flows State the effect (cash receipt or payment and amount) of each of the following transactions

xeze [42]

Answer:

The classification is shown below:

Explanation:

As we already know that

Cash receipts is the amount which is received by the company in cash that results in increment in cash balance. It is a cash inflow

While the cash payment is the amount which has to be paid by the company in cash that results in decrements in cash balance. It is a cash outflow

So based on this, the categorization is presented below:

Retired $200,000 of bonds, on which there was $2,000 of unamortized discount, for $208,000. = Cash payment for $208,000

Sold 12,000 shares of $20 par common stock for $39 per share. = 12,000 shares × $39 = $468,000 cash receipt

Sold equipment with a book value of $47,500 for $68,400. = Cash receipt for $68,400

Purchased land for $328,000 cash. = Cash payment for $328,000

Purchased a building by paying $51,000 cash and issuing a $90,000 mortgage note payable. = Cash payment for $51,000

Sold a new issue of $270,000 of bonds at 98. = Cash receipts for $264,600 ($270,000 × 0.98)

Purchased 4,000 shares of $30 par common stock as treasury stock at $60 per share. = Cash payment for $240,000 (4,000 shares × $60)

Paid dividends of $1.90 per share There were 19,000 shares issued and 3,000 shares of treasury stock. = Cash payment for $304,00 (19,000 shares - 3,000 shares) × $1.90

7 0

3 years ago

Keller Cosmetics maintains an operating profit margin of 7% and asset turnover ratio of 4.

Stels [109]

Answer:

a) 28%

b) 56%

Explanation:

Data provided in the question:

Operating profit margin = 7%

Asset turnover ratio = 4

Now,

a) ROA = Profit margin × Asset turnover ratio

= 7% × 4

= 28%

b) Given:

Debt-equity ratio = 1

Interest payments = $8,200

Taxes = $8,200

EBIT = $21,000

Now,

Total assets = Net income ÷ ROA

Also,

Net income = EBIT - tax - interest

= $21,000 - $8,200 - $8,200

= $4,600

Thus,

Total assets = $4,600 ÷ 28%

= $16428.57

also,

Total assets = Debt + Equity

Total assets = Equity × ( $\frac{\textup{Debt}}{\textup{Equity}}+1$ )

$16428.57 = Equity × ( 1 + 1 )

=> Equity = $8214.28

Therefore,

ROE = Net income ÷ Equity

= $4,600 ÷ $8214.28

= 56%

4 0

3 years ago

The more frequent daily activities of financial management include:

Lady bird [3.3K]

Answer:

credit management
receipt and disbursement of funds
inventory control

Explanation:

Activities such as stablishing budgets and plans are done once every year. And the sale of stocks and bonds is done only if the company makes and IPO or an emission of Bonds which are impossible to occur daily.

7 0

3 years ago