The separation of the ownership of the firm from the control of the firm leads to: ___________

eBook Problem Walk-Through Byron Books Inc. recently reported $12 million of net income. Its EBIT was $28.6 million, and its tax

snow_lady [41]

Answer:

Earnings Before Tax (EBT) = $16,000,000

Interest expense = $12,600,000

Explanation:

Earnings Before Tax (EBT) = Net Income / (1 - Tax Rate)

Earnings Before Tax (EBT) = $12,000,000 / ( 1 - 0.25)

Earnings Before Tax (EBT) = $12,000,000 / 0.75

Earnings Before Tax (EBT) = $16,000,000

Interest expense = Earnings Before Interest and taxes (EBIT) - Earnings Before taxes (EBT)

Interest expense = $28,600,000 - $16,000,000

Interest expense = $12,600,000

Income Statement

Details Amount

EBIT $28,600,000

Less: Interest expenses <u>$12,600,000</u>

EBT $16,000,000

Tax at 25% <u>$4,000,000</u>

Net Income $12,000,000

4 0

3 years ago

Soriano Company had net sales of $300,000 for the month (after returns and allowances of $1,500 and sales discounts of $3,250).

Yanka [14]

Answer:

Ending Inventory $ 64,000

Explanation:

To define the final inventory of the company it's necessary to find the cost of good of the period.

As the company had a 43% of gross profit, it means that for every dollar of sales we have 0,43 dollar of Gross Profit, with this value is possible to know the total cost of the goods sold during the period, that it's the difference between Sales Revenue and Gross Profit.

Total Sales Revenue had to be the net value after returns and discounts as it's detailed.

Income Statement

Sales revenue $ 300,000

Cost of goods sold -$ 171,000

Gross Profit $ 129,000 43%

Beginning Inventory $ 60,000

Purchases $ 175,000

Cost of goods sold -$ 171,000

Ending Inventory $ 64,000

7 0

3 years ago

Ms. Marilynn Castillo is a marketing manager at Gordon Corp. She debates whether or not to conduct a marketing research study be

Ipatiy [6.2K]

Answer:

The correct answer is letter "B": cost-benefit assessment.

Explanation:

Cost-benefit assessment implies analyzing what the costs and benefits of engaging in business are. The approach aims to minimize losses and maximize benefits. It does not necessarily imply there are not going to be losses during the business cycle but could reduce them as much as possible.

3 0

3 years ago

You're optimizing a client's Shopping campaign to drive online sales and are assessing the company's website. You determine that

skad [1K]

Answer: must allow shoppers to go back to their shopping cart when using their desktop computer.

Explanation: It important to use strategies that maximise the size of the mobile screens of people's phones when making a mobile website. This makes it easier for people to return to their shopping cart when they are on their desktop computer, thereby allowing them to carry on again on their desktop, to complete their purchase.

8 0

3 years ago

Which of the following is the surest way to verify the reliability of information from a new or unknown source?

padilas [110]

Answer:

4. Corroborate the information with other sources

Explanation:

The surest way to verify the reliability of information from a new or unknown source is to corroborate the information with other sources.

This simply means that, if you got an information (data) from a new source such as newspaper, website, television, books, radio or anywhere else, you should confirm the credibility and reliability of these information by verifying from one or more sources.

Hence, if the information gotten from a new source is in tandem or accordance with what you find elsewhere, then that information is accurate, reliable and credible.

6 0

3 years ago

Read 2 more answers

The separation of the ownership of the firm from the control of the firm leads to: ____________