Answer:
The Silverside Company
Project 1's Payback Period
= Initial Investment/Annual cash flows
= $400,000 / $90,000
= 4.44 years.
Explanation:
Project 1:
Initial Investment = $400,000
Useful life = 5 years
Annual cash inflows for useful life = $90,000
The Silverside Company's payback period calculates the time or number of years that it would take the company to recover from its initial investment in Project 1. This is the simple payback period calculation. There is also the discounted payback period calculation. This method discounts the annual cash inflows to their present values before the calculation is carried out. This second method gives a present value perspective on the issue.
Answer:
$539
Explanation:
Based on the information given we were told that he transfer property which had a fair market value of the amount of $539 to a corporation in exchange for stock which means that the amount that will be realized in the exchange for the stock will be the amount of $539.
Therefore the amount realized by Roberta in the exchange will be $539
Answer:
$1,300,000
Explanation:
The computation of the total amount included in the translated balance sheet is shown below:
= Account receivable at current rate + account receivable, long term at current rate + inventories at current rate + goodwill at current rate
= $600,000 + $300000 + $180,000 + $220,000
= $1,300,000
We recorded at the current rate or lower value of current rate or historical rate but the goodwill is recorded at current rate
Answer:
Deferred tax is increased by $130 million
Explanation:
We have given income = $400 million
Company is subject to a tax rate of 40 %
So tax rate = 40 %
So current Tax = $400×40%= $160 Million
Decrease in deferred tax assets of 50 million result in increase in tax expense
Hence total Tax Expense= $160+$50= $210 Million
But it is given that expense is only $80 million
So change in deferred tax is increases by = $210 - $80 = $130
So deferred tax is increases by $130 million
Answer:
e. Planning and budgeting purposes.
Explanation:
Sales variance analysis is used by managers for planning and budgeting purposes, as this analysis allows managers to better understand the company's sales scenario in a given period in relation to different variables such as budgeted quantity, quantity sold and amount of profit made.
Through analysis, greater control and strategic planning and future budgets are possible so that an organization remains profitable and competitive in the market.
