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3 years ago

Jan pays $70 each month for her auto insurance policy.This regular payment is called a

1 answer:

7 0

This type of regular payment is called a : premium

Premium refer to the payment that a person make upfront in order to receive a service. According to the company's policy, Jan's insurance could be instantly deactivated as soon as she stopped paying the premium

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Which tax is normally associated with an individual's death? excise tax consumption tax federal estate tax ad valorem tax?

photoshop1234 [79]

The tax associated with an individual's death is federal estate tax

3 0

3 years ago

8. Brady Inc. reported FIFO ending inventory of $114,000 and FIFO beginning inventory of $110,000 for 2018. Inventory purchases

atroni [7]

Answer:

$232,825

Explanation:

Step 1: Calculation of cost of goods sold (COGS) under First In First Out (FIFO)

Since we know that;

Ending inventory = Beginning inventory + Purchase - COGS of FIFO

Therefore, we can rearrange to make COGS the subject of the formula and substitute the values as follows:

COGS under FIFO = Beginning inventory + Purchase - Ending inventory

= $110,000 + $237,500 - $114,000 =

COGS under FIFO = $233,500

Step 2: Calculation of COGS under Last In First Out (LIFO)

COGS under LIFO = COGS under FIFO - Rise in LIFO reserve

= $233,500 - $675

COGS under LIFO = $232,825

Therefore, the value of COGS LIFO for Brady Inc. in 2018 is $232,825.

7 0

3 years ago

Jim's Espresso expects sales to grow by 10.3 % next year. Using the following statements and the percent of sales method, forec

stepladder [879]

Answer:

Jim's Espresso

The forecasted costs will be :___________

a. Costs = $110,168

b. Depreciation = $6,575

c. Net Income = $70,482

d. Cash = $16,600

e. Accounts receivable = $2,283

f. Inventory = $4,511

g. Property, plant, and equipment = $11,085

Explanation:

a) Data and Calculations:

Sales growth = 10.3%

Balance Sheet

Assets Percentage of sales

Current Forecast

Cash and Equivalents $15,050 0.07357 $16,600

Accounts Receivable 2070 0.01012 2,283

Inventories 4090 0.01999 4,511

Total Current Assets $21,210

Property, Plant and Equipment 10,050 0.04913 11,085

Total Assets $31,260

Liabilities and Equity:

Accounts Payable $1,580

Debt 3930

Total Liabilities $5,510

Stockholders' Equity 25750

Total Liabilities and Equity $31,260

Income Statement: Current % Forecast

Year

Sales $204,560 1 $225,630

Costs Except Depreciation (99,880) 0.48827 (110,168)

EBITDA $104,680 0.51173

Depreciation (5,960) 0.02914 (6,575)

EBIT $98,720 0.48260

Interest Expense (net) (410) 0.00200

Pretax Income $98,310 0.48059

Income Tax (34,409) 0.16821

Net Income $63,901 0.31238 $70,482

The forecasts are based on sales of the current year and the next year.

5 0

3 years ago

R. J. Graziano Wholesale Corp. uses the LIFO method of inventory costing. In the current year, profit at R. J. Graziano is runni

Nata [24]

Answer:

a. What is the effect of this transaction on this year's and next year's income statement and income tax expense? Why?

The inventory account is a permanent asset account in the balance sheet, so it doesn't matter if the company purchases all that it can during the last days of December, it will not affect the income statement, nor their tax liability for the current year. A company only recognizes cost of goods sold when the goods are actually sold, not when they are purchased.

Since the company uses the LIFO (last in, first out) inventory method, all it will do is increase the value of ending inventory which changes into beginning inventory next year. You can reduce next year's income more by purchasing the goods next year.

b. If R. J. Graziano Wholesale had been using the FIFO method of inventory costing, would the president give the same directive?

If the company used the FIFO method, the result will be the same. Inventory is not COGS, whether you use FIFO, LIFO weighted average, specific identification, or any other acronym that you might come up with. At beginning of the year, inventory must be average to determine beginning inventory. it might help to increase COGS a little, therefore, decreasing net income, but the effects shouldn't be significant.

c. Should the plant accountant order the inventory purchase to lower income? What are the ethical implications of this order?

It is useless, and he should know it. The only implication is that this will help him realize his low IQ.

6 0

3 years ago

What is the rate at which one currency is converted to another currency called?

n200080 [17]

My answer would be C ''Foreign Exchange Rate''.

4 0

4 years ago

Read 2 more answers