Answer:
Dr Bad Debt Expense $12,760
Cr Allowance for Doubtful Accounts $12,760
Explanation:
Based on the information given the adjusting journal entry that Tanning Company will make if the Allowance for Doubtful Accounts has a credit balance of the amount of $1,400 before adjustment will be :
Dr Bad Debt Expense $12,760
Cr Allowance for Doubtful Accounts $12,760
[(4%*$354,000)-$1,400]
Answer:
The predicted value of sales is $75,037,500.
Explanation:
Given:
Q = 875 + 6XA + 15Y - 5P ……………………..(1)
Where:
Q = quantity sold = ?
XA = Advertising = $100,000
Y = Income = $10,000
P = Price = $100
Substituting the values into equation (1), we have:
Q = 875 + (6 * 100,000) + (15 * 10,000) - (5 * 100)
Q = 750,375
Therefore, we have:
Predicted value of sales = Q * P = 750,375 * $100 = $75,037,500
Therefore, the predicted value of sales is $75,037,500.
Answer:
Attached below
Explanation:
Receivables balance = $196 million
Minimum cash balance = $20 million
Given data :
Q1 Q2 Q3 Q4
Sales $441 $513 $594 $558
Total cash disbursement 368 465 720 456
attached below is the cash budget for the company as required
Answer:
A. 19,800
B. Check answer
Explanation:
In this question, we are asked to calculate or find out two things
Tax payable on $450,000 if they does not incorporate the sole proprietorship and file joint is 108,879.
If they incorporate sole proprietorship and shift $250,000 to it, on balance $200,000 taxable income they pay $36,579 on their individual return and on $250,000 business income at 21% tax payable is $52,500. Thus, total tax payable is $89,079.
By shifting $250,000 income to corporate, they are saving $19,800 in taxes.
b
Their marginal tax rate is 22% once their income crosses $77,400. It is beneficial if they keep $77,400 taxable in their hands and the balance $372,600 in the hands of the corporate at 21%.
Answer:
The geometric average return for this stock was <u>8.64%</u>.
Explanation:
Geometric average return refers to the return which will result in the correct compounded dollars at the end of the time period.
Geometric average return can be computed using the following formula:
Geometric average return = {[(1 + r1)(1 + r2) ... (1 + rn)]^(1/n)} - 1 ......... (1)
Where r is returns from year 1 to year n.
For the stock in the question, we have:
r1 = 9.62%, 0.0962
r2 = -14.65%, or -0.1465
r3 = 19.85%, or 0.1985
r4 = 25.35%, or 0.2535
r5 = 7.65%, or 0.0765
n = 5
Substituting the values into equation (1), we have:
Geometric average return = {[(1 + 0.0962)(1 - 0.1465)(1 + 0.1985)(1 + 0.2535)(1 + 0.0765)]^(1/5)} - 1
Geometric average return = {1.51310732605096^0.20} - 1
Geometric average return = 0.0864, or 8.64%
Therefore, the geometric average return for this stock was <u>8.64%</u>.
