Answer: 200%
Explanation:
First find the return required.
= 10% of total assets
= 10% * 5,000,000
= $500,000
The total manufacturing costs are:
= 250,000 + 450,000
= $700,000
We need to know the amount to increase the manufacturing costs by so that it covers both the desired return and the admin costs:
= (Desired return + Admin costs) / Manufacturing costs * 100%
= (500,000 + 600,000 + 300,000) / 700,000 * 100%
= 200%
Option a) $5075.88 is the addition to the retained earnings
Current profits less any dividends or other payouts to shareholders are a company's retained earnings. Every time an accounting entry is made that has an effect on a revenue or expense account, this sum is modified. A sizable retained profits balance suggests that the corporation is in a secure financial position.
Computing after-tax profit:
(Revenues - Interest cost - Depreciation - Cost of goods sold - Administrative costs) x ( 1 - tax)
= ($42629 - $1,230 - $2,609 - $23,704 - $7,040) x ( 1 - 22%)
= $6,275.88
Retained earnings addition:
= After-tax net profit - Dividends paid
= 6,275.88 - 1,200
= $5,075.88
Hence, option a) is the correct answer
Learn more about retained earnings:
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Answer:Go to a broker or bank to open up an IRA account which offers an individual valuable tax benefits for people who want to save for retirement.
Explanation: Since Edna company doesn't offer any tax retirement benefits to its employees, in which they would have offered her a 401(k)s which is usually offered by employers. An IRA will help her have access to various investments Adnan individual retirement saver.
Answer:
Discounted value
Explanation:
From Abigail's speech, the present value or the discounted value of an asset is the current value of the cash flows which are to be paid or gotten at a date in the future.
The reason discounted is the answer is because cash flows in the future have to be brought to a date in the present. Instead of compounding, it is better to discount since compounding raises present value when placed side by side with future value.
