The amount of net income reported on Sparty's income statement is $19,690.
<h3>
What is revenue?</h3>
- The total amount of income earned by the sale of goods and services connected to the principal operations of the firm is referred to as revenue in accounting.
- Commercial revenue is often known as sales or turnover.
- Some businesses make money by charging interest, royalties, or other fees.
<h3>What are dividends?</h3>
- A dividend is a profit distribution made by a corporation to its shareholders.
- When a corporation makes a profit or has a surplus, it can pay a portion of the earnings to shareholders as a dividend.
- Any money that is not dispersed is re-invested in the company.
<h3>Solution -</h3>
To find the amount of net income reported on Sparty's income statement, use the following formula:
Net Income = Gross Profit — Operating Expenses — Other Business Expenses — Taxes — Interest on Debt + Other Income
Net income = 80000 - 31000 - 11000 - 18130 = 19690
Therefore, the amount of net income reported on Sparty's income statement is $19,690.
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Answer:
A. Year 2 $31,500
Year 2 $31,500
B. Year 1 = 63,000
Book Value of Tractor $252,000
Year 2 $ 50,400
Book Value of Tractor $201,600
Explanation:
a. Calculation to Determine the depreciation for each of the first two years by the straight-line method
Year 1 = $315,000 / 10
Year 1 = $31,500
Year 2 = $315,000 / 10
Year 2= $31,500
B) Calculation to determine the depreciation for each of the first two years by the double-declining-balance method
Based on the information given we are first going to calculate the percentage of depreciation using straight line method and then double it
Percentage = $ 315,000 *10%
Percentage=$31,500
Now let depreciation the book value each year by 20% Using the double-declining-balance method method
Year 1=20% of $ 315,000
Year 1= 63,000
Book Value=$315,000 - $63,000
Book Value= $ 252,000
Year 2= 20% of 252,000
Year 2 = $ 50,400
Book Value=$ 252,000 -$50,400
Book Value= $201,600
The answer is true. In economics, the supposition of ceteris paribus,
a Latin expression that means "with other things the same" is significant
in defining causation. It helps separate numerous independent variables touching
a dependent variable. Causal relationships among financial variables are hard
to separate in the real world, ever since most economic variables are typically
affected by more than one cause, but reproductions often hinge on a supposition
of independent variables.
Answer:
(a) $190,000
(b) $635,000
(c) $625,000
Explanation:
(a) Cost of material Consumed:
= Opening Stock of material + Purchases - Closing Material
= $1,20,000 + $200,000 - $130,000
= $190,000
(b) Total Manufacturing cost:
= Direct Material + Direct labor + Overhead
= $190,000 + $120,000 + $325,000
= $635,000
(c) Cost of goods manufactured:
= Total Manufacturing cost + Work in progress Beginning - Work in progress End
= $635,000 + 80,000 - 90,000
= $625,000
Answer: $42.63
Explanation:
To calculate this we will add the present value of Future cash flows (dividends) to the present value of the stock.
Dividend per share one year from now is,
= 238/100
= $2.38
Stock Price a year from now = $46
Discount rate is $13.5%
PV of sum = 2.38/(1+0.135) + 46/ (1 + 0.135)
= 42.6255506608
= 42.63
$42.63 is the Intrinsic value of the stock.
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