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2 years ago

U.S. GAAP for long-lived assets significantly impedes rate-of-return comparisons across companies unless the firms:

Business

1 answer:

kap26 [50]2 years ago

6 0

Answer: Apply the same depreciation methods and the same useful lives among similar groups of assets

Explanation:

US GAAP for long-lived assets significantly impedes rate-of-return that is, the annual income from an investment which is being expressed as a proportion of the original investment comparisons across companies unless the firms apply the same depreciation methods and also the same useful lives are applied among identical groups of assets.

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Are specialized accountants who look for evidence of improper

oksian1 [2.3K]

Answer:

A. Forensic accountants

Explanation:

Forensic accountants possess auditing and investigative skills. Their work entails examining financial records and statements in search of evidence for any financial misleading. Forensic accountants are trained and qualified accountants or auditors. They acquire investigative skills through specialized training.

5 0

3 years ago

Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch. Kokomochi

Alla [95]

Answer:

Check Explanation.

Explanation:

Note that the amount are in millions(dollar).

Year one: the sales of Mini Mochi Munch = $ 8.8 million = 8.8, sales of other products = $ 1.7 million. Hence, the gross profit = (8.8 × 38%) + (8.8 × 23%) = 5.368.

The selling, general and administrative expenses = 4.9 and the depreciation is zero.

Then, the EBIT = the gross profit -selling, general and administrative expenses - Depreciation.

EBIT = 5.368 - 4.9 - 0 = 0.468.

Less income tax at 38% = 0.17784.

incremental earnings= EBIT - Less income tax at 38%.

incremental earnings = 0.468 - 0.17784.

Year two: the sales of Mini Mochi Munch = $ 6.8 million = 6.8, sales of other products = $ 1.7 million. Hence, the gross profit = (6.8 × 38%) + (6.8 × 23%) = 4.148.

The selling, general and administrative expenses = 0, and the depreciation is zero(0).

Then, the EBIT = the gross profit -selling, general and administrative expenses - Depreciation.

EBIT = 4.148 - 4.9 - 0 = −0.752.

Less income tax at 38% = −0.28576.

incremental earnings= EBIT - Less income tax at 38%.

incremental earnings = −0.752 - −0.28576 = −1.03776.

3 0

3 years ago

an unmarried taxpayer, has wages of $45,000. He has a significant amount of income from dividends and interest and therefore exp

Olin [163]

Answer: $8500

Explanation:

Since the total amount of estimated tax liability for 2018 is $18000 and the tax withholding is $9500$, then the balance tax payable for 2018 will be:

= $18000 - $9500

= $8500

Therefore, the minimum amount of total estimated tax that Randy must pay in 2018 in order to avoid a penalty for underpayment of estimated taxes will be $8500

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3 years ago

What impacts the growth of small business

In-s [12.5K]

Answer:

Variation in size, scope and buoyancy of demand in local markets is likely to affect growth opportunities. ... A business set up to exploit an identified market opportunity would be expected to have stronger growth orientation than one set up as a result of 'push' factors such as a lack of alternative opportunities.

8 0

3 years ago

The FI Corporation’s dividends per share are expected to grow indefinitely by 5% per year. a. If this year’s year-end dividend i

Andreyy89

Answer:

P₀ = Div₁ / (Re - g)

P₀ = current stock price = ?
Div₁ = next dividend = $8
Re = equity cost = 10%
g = constant growth rate = 5%

P₀ = $8 / (10% - 5%) = $8 / 5% = $160

EPS = $12

Return on equity (ROE) = g / b

b = retention rate = 1 - payout ratio = 1 - ($8/$12) = 0.333

g = 5%

ROE = 5% / 0.333 = 15%

Present value of growth opportunity (PVGO) = P₀ - EPS/Re

P₀ = $160
EPS = $12
Re = 10%

PVGO = $160 - $12/10% = $160 - $120 = $40 per share

6 0

3 years ago