1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
bezimeni [28]
2 years ago
10

The owner of a bicycle repair shop forecasts revenues of $160,000 a year. Variable costs will be $50,000, and rental costs for t

he shop are $30,000 a year. Depreciation on the repair tools will be $10,000. Prepare an income statement for the shop based on these estimates. The tax rate is 35%.
Business
1 answer:
Roman55 [17]2 years ago
6 0

Answer and Explanation:

The preparation of the income statement is presented below:

<u>Particulars        Amount </u>

Revenue           $160,000

Less:

Rental Costs       $30,000

Variable Costs     $50,000

Depreciation       $10,000

Profit before tax $70,000

Tax at 35%     -$24,500

Net Income     $45,500

Hence, the net income is $45,500

You might be interested in
Television channel operating profits vary from as high as 45 to 55 percent at MTV and Nickelodeon down to 12 to 18 percent at NB
Xelga [282]

Answer:

Explanation:

MTV and cable channels can have higher operating profits largely because they have lower costs and can reach very specific demographic groups quite easily. MTV and Nickleodeon are typically not paying high and uncertain prices for their shows. They air mainly reruns of proven shows or relatively low-cost reality shows. This means that they have more cost certainty.

In addition, they have very clear target audiences where the networks do not. MTV is clearly aimed at teens and young adults while Nickleodeon is a kids' channel. Advertisers are attracted to channels with such clear demographics.

As far as Porter's five forces go, the most likely reason for the higher cable profits would have to do with brand equity and the lower propensity among buyers to substitute.

These would mean that cable channels have a lower threat of new competition and a lower threat of substitute products. It is true that it is easy for a new cable channel to be created, but it is much harder for such a channel to get the name recognition and brand equity that MTV and Nickleodeon have.

4 0
3 years ago
For which buyer would a lender most likely approve a $200,000 mortgage?
jolli1 [7]
I think the answer is B: a person with a credit score of 760 with a small amount of debt who has had steady employment for many years. 

5 0
3 years ago
Read 2 more answers
A cash dividend payment to shareholders during the year should be reported on the statement of cash flows as:Multiple ChoiceAn i
mafiozo [28]

Answer:

A decrease in cash flows from financing activities

Explanation:

When cash dividend is paid,

It is an outflow of cash as paid, therefore it will decrease the cash flows.

Further dividend is paid to equity, or preference capital raised for business, which is a financing activity.

Therefore, a cash dividend paid to shareholders will result in decrease in cash flow from financing activities.

Whereas cash dividend received is investing activity.

Final Answer

A decrease in cash flows from financing activities.

3 0
3 years ago
Read 2 more answers
Which of the following situations would not result in auditors adding an emphasis-of-matter paragraph or section to their report
Alexxandr [17]

Answer: Reference to a departure from GAAP that is material, but not pervasive, to the financial statements.

Explanation:

Based on the information given, the situation which would not result in the auditors adding an additional paragraph to their report without the modification of the introductory, the scope, or the opinion paragraphs of the report is option A "Reference to a departure from GAAP that is material, but not pervasive, to the financial statements".

Other options are incorrect. Therefore, the correct option is A

8 0
2 years ago
A pharmaceutical company in Belgium decides to expand into additional markets. It conducts research and decides to focus on mark
stepladder [879]

Answer:

C) standardization strategy

Explanation:

standardization strategy can be regarded as one whereby a business owner or firm give same treatment to the whole world as if it's just one market that have just small meaningful variation It's base on an assumption that needs of people can be met with a product.

7 0
2 years ago
Other questions:
  • A common procedure to determine the value of a merger candidate is to estimate the present value of discounted cash flows and th
    10·1 answer
  • What will keeping a running list of new words help you do?
    15·1 answer
  • Consider a bp gas station. as a result of an economic recession and decreases in consumer incomes, there will be a:
    14·1 answer
  • On September 1, 2021, Gold Gaming sold 400 one-year subscriptions to its online gaming website for $90 each. The total amount re
    9·2 answers
  • For a person to keep his real income steady at a certain level from one year to the next, his nominal income must Multiple Choic
    13·1 answer
  • On January 1, 2014, Fishbone Corporation sold a building that cost $260,300 and that had accumulated depreciation of $105,700 on
    12·1 answer
  • Union Local School District has bonds outstanding with a coupon rate of 2.9 percent paid semiannually and 24 years to maturity.
    9·2 answers
  • Belle Co. received merchandise on consignment. As of March 31, Belle had recorded the transaction as a purchase and included the
    11·1 answer
  • Which best describes the main role of the three major credit reporting agencies?.
    9·1 answer
  • In the United States, what is the average age range of CEOs?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!