Answer:
$255,000
Explanation:
Given that,
2016:
Taxable and pretax financial income = $850,000
Tax rate = 30%
2017:
Taxable and pretax financial income = $850,000
Tax rate = 35%
Income tax refund receivable in 2018:
= Taxable and pretax financial loss in 2018 × Tax rate in the year 2016
= $850,000 × 30 percent
= $255,000
Note:
(i) The carry back provision allows losses to be carried back to preceding 2 years, with the amount of net loss being applied to earliest year first.
(ii) 2018 net loss should be applied to income of 2016 first.
Answer:
Explanation:
Management theories help organizations to focus, communicate, and evolve. Using management theory in the workplace allows leadership to focus on their main goals. When a management style or theory is implemented, it automatically streamlines the top priorities for the organization.
Answer:
a) Bond rating is done by evaluating and considering all the relevant internal as well as external factors associated with the financial status of a business.
b) Bond rating helps in analysing the risk associated with the bond by analyzing its credit quality and thus helps investors taking decisions related to their investments.
Explanation:
a) Bond-rating is the letter grading system that is used to indicate the quality of the credit-related to the bond of various organizations. Bond-rating is done by evaluating and considering all the relevant internal as well as external factors associated with the financial status of a business. Internal factors may include the financial strength of the organization. External factors may include various networks with interested investors and other government organizations and policies related to the same.
There are three important agencies that analyze the credit quality of a bond. These agencies are Standard & Poor's, Moody's, and Fitch rating Inc.
b) Bond-rating help in analyzing the risk associated with the bond by analyzing its credit quality and thus helps investors taking decisions related to their investments. It helps the investors to study the stability and quality of a bond. Hence, higher-rated bonds are considered to be more stable and appropriate for investment purposes.
Answer:
$2,433
Explanation:
Net Income = Sales - Expenses
where,
Sales = $3,033
and
Expenses = $600
therefore,
Net Income = $3,033 - $600 = $2,433
Answer: Decrease by $70000
Explanation:
Before the Barbecue Division is eliminated, the profit gotten will be:
Revenue from Barbecue Division sales = $510,000
Less: Salaries = $110000
Less: Direct material = $315000
Profit = $70000
Therefore, based on the analysis above, If Barbecue Division were eliminated, profitability would decrease by $70000
