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3 years ago

Limited Liability Companies (LLCs) are gaining in popularity over sub-chapter S corporations because:_____.

Business

1 answer:

Kisachek [45]3 years ago

7 0

Answer:

E. They are simpler when it comes to paperwork, offer some of the same tax advantages and also protect members from unlimited financial exposure

Explanation:

Limited liability companies are set up to protect the owners from liability. The business is a seperate entity from the individual owners and their assets are not used to settle debts of the business.

This type of business is gaining more use than S corporation. S corporation in addition to having liability advantages also requires more rigid requirements to set up. They do not pay corporate tax, but rather are taxed as sole proprietorship or a partnership.

Because of the ease of setting up an LLC more people prefer it to an S corporation. It also protects owners from unlimited financial liability

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The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2017.Raw Materials Invento

konstantin123 [22]

Answer:

A) cost of goods manufactured schedule

Factory Insurance 4,700

Factory Utilities 29,100

Factory Machinery Depreciation 19,000

Direct Labor 147,750

Plant Manager`s Salary 65,600

Indirect Labor 26,560

Factory Property Taxes 9,810

Factory Repairs 1,600

Add Beginning Work in Process Inventory 26,800

Less Closing Work in Process Inventory (22,300)

Cost of Goods Manufactured $308,620

B) income statement through gross profit

Sales Revenue 564,000

Less Sales Discounts (4,700)

Net Sales 559,300

Less Cost of Goods Sold :

Finished Goods Inventory 98,200

Add Cost of Goods Manufactured 308,620

Less Closing Finished Goods Inventory (26,100) (380,720)

Gross Profit 178,580

C) current assets section of the balance sheet at June 30,2017

Current Assets

Raw Materials Inventory 46,000

Work in Process Inventory 22,300

Finished Goods Inventory 26,100

Accounts Receivable 27,100

Cash 35,600

Total Current Assets 157,100

Explanation:

Raw Materials Consumed in Production Calculation

Open a Raw Materials T - Account as follows :

Debit :

Opening Balance $51,100

Purchases $97,500

Totals $148,600

Credit :

Closing Balance $46,000

Requisitioned for Production (Balancing figure) $102,600

Totals $148,600

3 0

3 years ago

A portfolio with a 30% standard deviation generated a return of 15% last year when T-bills were paying 6.0%. This portfolio had

jarptica [38.1K]

Answer: 0.3

Explanation:

The Sharpe ratio is simply used by organizations and investors in order to compare the return on an investment to its risk.

From the question, we are informed that a portfolio has a 30% standard deviation generated a return of 15% last year when T-bills were paying 6.0%.

The Sharpe ratio will be:

= (15% - 6.0%)/30%

= 9%/30%

= 0.09/0.3

= 0.3

4 0

3 years ago

a senior executive who promotes the project and ensures its support, both financially and administratively, at the highest leve

Kruka [31]

The answer to this problem is "CHAMPION" such as when the Senior Executive of the company who promotes the project and ensures its support, both financially and administratively aspects, at the highest or the top levels of the organization is needed to fill the role of a CHAMPION on a development team where he will leads and facilitate to achieve the common goals of the entire organization.

5 0

3 years ago

Project 1 requires an original investment of $125,000. The project will yield cash flows of $50,000 per year for 10 years. Proje

mario62 [17]

Answer: $126,613

Explanation:

Net Present value of Project A is:

= Present value of $50,000 annuity + Present value of residual value - Initial investment

Present value of $50,000 annuity:

= 50,000 * ( 1 - ( 1 + rate)^-number of periods) / rate

= 50,000 * ( 1 - ( 1 + 12%) ⁻⁸) / 12%

= $248,382

Present value of residual value:

= 8,000 / ( 1 + 12%)⁸

= $3,231

Net present value

= 248,382 + 3,231 - 125,000

= $126,613

6 0

3 years ago

Sully Corporation uses an allowance method for accounting for bad debt expense. Sully estimates that 2% of sales will eventually

il63 [147K]

Answer:

$4000

Explanation:

The total sales would the sum of credit sales and sales on cash basis,in effect total sales is $200,000($100,000+$100,000).

The estimate for allowance for uncollectible debt is 2% of total sales,which is $4000 (2%*$200,0000)

Hence,the correct answer in this case is $4000 and it implies that Sully Corporation intends to receive $96,000 in cash out of the debt to its by customers($100,000-$4,000)

8 0

3 years ago