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3 years ago

Question

Business

1 answer:

Snezhnost [94]3 years ago

5 0

Answer:

A. Dr Deferred Tax Asset 60,000.00

Cr Deferred Tax 60,000.00

B. Income Statement (Partial)

Current Tax -

Deferred Tax (60,000.00)

Total Tax (60,000.00)

C.Dr Deferred Tax Asset 36,000

Cr Deferred Tax 36,000

D. Income Statement (Partial)

Current Tax -

Deferred Tax 36,000

Total Tax 36,000

E. Dr Deferred Tax Asset 27,000

Cr Deferred Tax 27,000

F. Income Statement (Partial)

Current Tax -

Deferred Tax 27,000

Total Tax 27,000

Explanation:

A. Calculation for what the entries for income taxes should be recorded for 2010

Entries for Income tax for 2010

Dr Deferred Tax Asset 60,000.00

Cr Deferred Tax 60,000.00

2010 (150,000 *40 %)

(To record timing difference of carry forward losses)

b) Indication for what the income tax expense portion of the income statement for 2010 should look like. :

Felicia Rashad Corporation

Income Statement (Partial)

Current Tax -

Deferred Tax (60,000.00)

Total Tax (60,000.00)

c) Calculation for what the entries for income taxes should be recorded for 2011

Dr Deferred Tax Asset 36,000

Cr Deferred Tax 36,000

2011 (90,000* 40 %)

(To record deferred tax asset utilization)

d) Income tax expense section of the income statement for 2011 appear

Felicia Rashad Corporation

Income Statement (Partial)

Current Tax -

Deferred Tax 36,000

Total Tax 36,000

e) Calculation for what the entries for income taxes should be recorded for 2014

Dr Deferred Tax Asset 27,000

Cr Deferred Tax 27,000

2014 (60,000*45 %)

(To record deferred tax asset utilization)

f) Income tax expense section of the income statement for 2014 appear

Felicia Rashad Corporation

Income Statement (Partial)

Current Tax -

Deferred Tax 27,000

Total Tax 27,000

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Assume the current U.S. dollar-yen spot rate is 125¥/$. Further, the current nominal 180-day rate of return in Japan is 3% and 4

statuscvo [17]

Answer:

124.39Y/$

Explanation:

Calculation to determine the approximate forward exchange rate for 180 days

Using this formula

Forward exchange rate/spot exchange rate = [(1+rh)/(1+rf)]*r

Where,

rh = periodic interest rate in the home currency

rf = periodic interest rate in the foreign currency

r=Spot rate

Forward exchange rate= [1+3%*180/360]/[1+4%*180/360]*125¥/$.

Forward exchange rate = 1.015/1.02* 125¥/$

Forward exchange rate= 124.39Y/$

Therefore the approximate forward exchange rate for 180 days is 124.39Y/$

6 0

3 years ago

True or False: If a firm changes its credit policy and allows customers to pay in 90 days instead of 60 days, and everything els

Arte-miy333 [17]

Answer:

True

Explanation:

by increasing the time customers can pay to 90 days, the amount of cash inflows is likely to reduce. thus, the net cash flow in the next quarter is likely to decrease.

3 0

3 years ago

Donna formed a corporation several years ago by issuing 500 shares of stock. There are 10 shareholders, with the smallest shareh

Stels [109]

Answer:

A) If Donna's corporation will not accept new shareholders, they can raise money by issuing bonds or getting a bank loan.

B) Maybe the current shareholders don't want to divide their power within the corporation, so maybe Donna can convince them of issuing preferred stocks which does not give the new stockholders voting rights.

4 0

3 years ago

Material 1 costs $7 a pound, material 2 costs $5 a pound, and labor costs $15 per hour. Product A sells for $101 a unit, product

Umnica [9.8K]

Answer:

Some answers are attached below

Explanation:

We need to maximize profit -

Selling prices for A,B,C are given; Costs of materials 1,2 and labor are given.

Also given is that 1 unit of each product A,B,C requires certain units of material 1, material 2 and labor based on the table provided.

Profit for 1 unit of A = Selling Price - Cost = 101 - [(7*3)+(5*2)+(15*4)] = 10 $

Profit for 1 unit of B = Selling Price - Cost = 67 - [(7*1)+(5*4)+(15*2)] = 10 $

Profit for 1 unit of C = Selling Price - Cost = 97.5 - [(7*5)+(5*0)+(15*3.5)] = 10 $

LP Formulation

Maximize profit Z = 10A+10B+10C

subject to Constraints

3A+B+5C<=300 ----> Material 1 constraint

2A+4B<=400 ---->Material 2 constraint

4A+2B+3.5C <=200 ----->Labor

C>=10 -----> Product C Demand constraint

A,B,C>=0

Below is the solver solution and formulation table from Excel -

Maximum profit = 925 $

8 0

3 years ago

Indicate whether each of the following creates a demand for or a supply of European euros in foreign exchange markets:

andreyandreev [35.5K]

Answer:

See below.

Explanation:

A US purchase of a European product will create demand for Euros as US authorities would have to use euros in the exchange for the airbus, meaning they would have sell US and buy Euros.

The German firm needs to set up in US and thus would need the local currency to conduct its operations in Carolina, they will have to buy USD by selling euros and thus creating a euro supply.

The college student will have to be using Euros and as such would need to exchange dollars for euros, crating a demand.

As the products are shipped aboard a Liberian freighter, they would be paid by giving out euros in the foreign exchange market. This will create a supply of euros.

When the US economy grows at a faster pace, European citizens will invest in US securities or in USA in general thus creating a supply of euros as they buy USD for investments.

As the US government pays interest to a European bond holder, it will create a demand for Euros as more USD will be exchanged for Euros to be paid.

More people will speculate and invest in dollars as they fear euro losing value, this will create more supply of euro in the market as people look to invest elsewhere.

Hope that helps.

6 0

3 years ago