Answer:
$1,575,000
Explanation:
Net operating profit before taxes:
= Sales - operating costs
= $22,500,000 - $18,000,000
= $4,500,000
Net operating profit after taxes:
= Net operating profit before taxes - Taxes
= $4,500,000 - ($4,500,000 × 0.35)
= $4,500,000 - $1,575,000
= $2,925,000
Economic Value Added:
= Net Operating Profit After Taxes - (Operating Capital × Weighted Average Cost of Capital)
= $2,925,000 - (15,000,000 × 9%)
= $2,925,000 - $1,350,000
= $1,575,000
<span>biotechnology research and support services
</span>
Answer:
$14,000,000
Explanation:
To be reported under Property, Plant and Equipment:
= (Buildings and equipment - Accumulated depreciation) + Land Improvements + Land
= ($9,200,000 - $1,200,000) + $1,000,000 + 5,000,000
= $8,000,000 + $1,000,000 + 5,000,000
= $14,000,000
Note:
(1) Intangible Assets (Patents) will be reported after Plant, Property and Equipment. These are not a part of plant, Property and Equipment.
(2) There is no information about the useful life of the Land, so the value of land improvements will be included in the property, plant, & equipment section.
<span>If you use a credit card and don't know the ins and outs of the grace period, you risk taking an awkward financial pratfall.
Capitalizing on the grace period's break on interest charges can save the typical cardholder a couple hundred bucks a year. But the savings aren't automatic and, according to an October 2013 report by the Consumer Financial Protection Bureau, it's "unclear whether consumers understand" the grace period's wily ways.
"It's basically an interest-free period, but only if you pay your balance by the due date," said Nessa Feddis, general counsel at the American Bankers Association.
Learn to use grace period
What it is: The grace period is the window of time from the end of your billing cycle to the due date for that cycle. Paying your new balance in full by the due date triggers a break on interest on new purchases during the current billing cycle -- if you pay in full consistently. While the grace period is referred to as an interest free period, the break on interest extends to the dates that purchases are made and posted to your balance.
Wiping out your monthly balance sounds simple, but it can be tricky if you don't already make a habit of it. Regaining the benefits of the grace period after even one month of carrying a balance can be confusing. And there are exceptions and pitfalls to watch out for. Paying in full during the grace period doesn't give you a break on cash advances or convenience checks, which, unlike purchases, usually begin building up interest immediately. Some balance transfers may also be excluded from a grace period, depending on the terms of your card.
Grace period is a holdover
Credit cards aren't required to provide a grace period, but almost all of them do, with the typical period being at least 25 days -- the norm for major issuers. If your due date falls on a weekend, the deadline extends to the next business day. Cards that do provide a grace period are required to mail your bill at least 21 days before your payment due date, under the CARD Act.
"It's a holdover from the origins of credit cards," Feddis said. "People would make a purchase at the store (on credit), and stores would allow people to pay at the end of the month."
The local grocer probably didn't want to calculate interest with a pencil stub on a brown paper bag, any more than his customers wanted to pay it. These days, calculating a daily periodic rate is a breeze for computers, yet most card companies continue to offer a grace period "because people are accustomed to it," Feddis said.
If you currently struggle to make the minimum monthly payment on your cards, it will take some work on your budget to get to the point where you can pay in full and qualify for the grace period. About 18 percent of Americans pay the minimum due each month, according to an analysis by the credit bureau TransUnion. At the other end of the spectrum, 42 percent regularly pay their full balances, capturing the benefit of the grace period's "free" loan from their credit cards.
That leaves 40 percent in the middle who pay more than the minimum, but less than the full balance. Paying more than the minimum is never a bad idea -- it will always reduce your interest costs. But if your budget allows, paying enough to wipe out your monthly balance entirely will boost your savings quite a bit more</span>
Answer:
a.
Date Account Details Debit Credit
Cash $27,000
Common Stock $27,000
b.
Date Account Details Debit Credit
Land $9,000
Notes Payable $9,000
c.
Date Account Details Debit Credit
Vehicles $18,000
Cash $2,000
Notes Payable $16,000
d.
Date Account Details Debit Credit
Vehicles $800
Cash $800
e. This does not require a journal entry as it is a personal transaction.
