Answer: d. Net income is part of the computation for ending retained earnings.
Explanation:
In the statement of owner's equity, Retained earnings are calculated and it is done with the Net Income. This is why when the net income is calculated from the Income Statement it is transfered to the SOE and used to calculate Retained Earnings.
Retained Earnings are calculated by the formula,
Ending Retained = Opening Retained Earnings + Net Income (losses) - Dividends
Net income is added to (or subtracted from if it is a Net loss) the Opening Retained earnings balance. Net dividends are also subtracted.
Answer:
The answer is A
Explanation:
The loan is an interest only loan since he is only paying the interest potion of 7%
Interest only loan is when the borrower pays only the interest for some or all the term of the loan with no changes in the borrowed amount
Answer:
The answer is explained below
Explanation:
The companies board of directors as well as you would consider whether it is best to install the scubber system. When determining whether to install the scubber system both short and long term consequences are to be considered. If presently, the level of pollution is legal, you need to consider if in the future it would be legal? if the installation of the scubber system would affect the public relations of the company. After considering all this, it would be better to install because the pollution can lead to death, and the neighborhood can sue the company. Also the EPA regulations can be regulated.
Answer:
Pretax financial income is $3,350,000.00
Explanation:
Fleming's pretax financial income is the taxable income for 2018 plus the increase in cumulative taxable temporary difference in 2018.
Taxable income is $4,000,000
Difference in cumulative taxable difference=$1,600,000-$2,250,000
=-$650,000
pretax financial income=$4,000,000+(-$650,000)
=$4,000,000-$650,000
=$ 3,350,000.00
The pretax financial income for year 2018 is $3,350,000.00
