Answer:
The objective of present Value is to present a set of cash flows based on their estimated fair value; to help decision makers in assessing the viability or otherwise of an option of investments.
Values don't stay the same year on year, various influences act to most times make the same $ amount lessened by tomorrows valuation; some factors like inflation, obsolescence, opportunity cost of not investing in other activities (cost of capital)....all these play a role in determining time value of money.
Present value attempts to harmonize all these influences and present a fair value of our $ dollar estimate of future values based on the impact of these factors.
Answer:
Yeats Corporation
The percent change for Year 2 compared to the base year is -4.04%
Explanation:
a) Calculations:
Year 1 Sales = $396,000
Year 2 Sales = $380,000
Reduction = $16,000
Percentage reduction = $16,000/$396,000 x 100 = 4.04%
This is a reduction, and it is negative.
b) The change in sales is calculated as the difference between year 1 and year 2 sales over the sales in year 1 multiplied by 100. This is expressed as a percentage by the multiplication by 100. The percent change describes the relationship between the sales figure in year 1 and the sales figure in 2. When calculated as above, it shows that sales reduced in year 2 by 4.04% from the sales in year 1.
Answer:
$2436
Explanation:
LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.
total goods sold = (total inventory purchased + beginning inventory) - 60
(36 + 126 + 18) - 60
180 - 60
= 120
the 120 units sold would be taken from the inventory purchased on the 22nd and 7
(18 x 22) + [(120 - 18) x 20]
396 + 2040 = 2436
<u>Solution and Explanation:</u>
SC's Depreciable assets for the purpose of financial reporting and income taxes were $40000 and $33000 respectively. Its taxable income is$97000.Temporary difference will be there because of Depreciation.
Temporary Difference=Financial reporting Dep-Income tax depreciation
=40000 minus 33000
=7000
Pretax financial income=taxable income+Temporary Difference
=97000+7000=$104000
Deferred tax liability=7000 multiply 30%=2100
Income tax expense=104000 multiply 30%=31200
Income tax payable=97000 multiply 30%=29100
Dec 31 Income Tax ExpensenA/C Dr. $31200
To Income Tax Payable A/C $ 29100
To Deferred Tax Liability A/C $ 2100
<u>
Answer:b
</u>
Slatter Company
Partial Balance Sheet
December 31, 2013
Noncurrent Liabilities
Deferred Tax Liability $2100
Using the cpi in 2013, of 233 and in 1998 of 163, divide 233/163=1.43 x 100=$143 the cost in 2013 of the same baby shower item as in 1998. In other words the purchasing power of the $1 decreased over this time period to account for this.