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Ivahew [28]
3 years ago
7

Smashed Pumpkins Co. paid $88 in dividends and $526 in interest over the past year. The company increased retained earnings by $

438 and had accounts payable of $522. Sales for the year were $16,055 and depreciation was $696. The tax rate was 38 percent. What was the company's EBIT?
Business
1 answer:
Andreas93 [3]3 years ago
8 0

Answer:

$1,374

Explanation:

With regards to the above, first, we will compute the net income.

Net income = Dividends + Increase in retained earnings

= $88 + $438 = $526

Therefore,

EBIT = [Net income / (1 - tax rate)] + Interest

= [$526 / (1 - 0.38)] + $526

= [$526 / 0.62] + $526

= $848 + $526

= $1,374

The company's EBIT is $1,374

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On January 1, Year 1, the Mahoney Company borrowed $164,000 cash from Sun Bank by issuing a five-year 8% term note. The principa
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Answer:

Principal payment =  $27,505.00  

Explanation:

<em>Loan Amortization: A loan repayment method structured such that a series of equal periodic installments will be paid for certain number of periods to offset both the loan principal amount and the accrued interest.</em>

The principal repayment in year 1 = Annual payment - Interest payment in year 1

<em>Interest payment in year = Interest rate × Principal Amount</em>

                                          =8% × 164,000

                                         =  $13,120.00  

Principal payment = $40,635 - 13,120 =  $27,505.00  

Principal payment =  $27,505.00  

8 0
3 years ago
The general ledger of Sandhill Corporation as of December 31, 2021, includes the following accounts: Copyrights $ 58000 Deposits
Dafna1 [17]

Answer:

$687,000

Explanation:

Intangible Assets are identifiable assets of a non-monetary asset  and without physical substance. Intangible assets include trademarks, copyrights and goodwill that is acquired.

Important to note that Internally generated Goodwill  is not defined as an assets. Thus, deposits with advertising agency of $35,000 are not included within tangible assets

<u>Calculation of Total Intangible Assets will be :</u>

Intangible Assets Calculation = (Copyrights) $ 58,000  + (Goodwill Acquired) $560,000 + (Trademarks) $69,000

                                                 = $687,000

Therefore,

Sandhill's balance sheet as of December 31, 2021 should report total intangible assets of $687,000

5 0
3 years ago
Asking a job applicant if he or she has ever been treated for drug addiction is an example of a(n)
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This is an illegal question. You may ask about a person's convictions for drug related charges, but you should not ask about treatment. This could also be classified as a needless question, but mostly illegal.

4 0
3 years ago
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Ariana and John, who file a joint return, have two dependent children, Kai and Angel. Kai is a freshman at State University and
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The amounts and types of education tax credits that Ariana and John can take without modified AGI limitation are as follows:

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For Kai      $1,000 ($2,500 x 40%)        The American Opportunity Credit

For Angel $1,560 ($7,800 x 20%)        The Lifetime Learning Credit

Total tax credit = $2,560 ($1,000 + $1,560)

<h3>What are the American Opportunity Credit and the Lifetime Learning Credit?</h3>

Whereas the American Opportunity Credit (Kia's) covers only the first 4 years of post-secondary education at 40% of $2,500 per student because Kia is a half-time student, the Lifetime Learning Credit applies to graduate schooling (Angel's) and covers 20% of the first $10,000 paid for tuition.

We must note that no taxpayer can claim both the American Opportunity Credit and the Lifetime Learning Credit for the same student in the same tax year.

Thus, the total education tax credit that Ariana and John can claim for both Kai and Angel is $2,560.

Learn more about education tax credits at brainly.com/question/8166956

6 0
2 years ago
To generate ideas for new products, some firms will purchase the rights to use another firm's technology. This is known as\
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The purchase of the rights to use another firm's technology in the scenario is known as outsourcing.

<h3>What is outsourcing?</h3>

It should be noted that outsourcing simply means the agreement in which a company hires another company in order to be responsible for certain activities.

In this case, this experienced when the firms purchase the rights to use another firm's technology.

Learn more about outsourcing on:

brainly.com/question/4456416

5 0
2 years ago
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