Answer:
d. the federal government.
All answers are correct Except Your name.
Answer:
D. $12,400
Explanation:
Use the following formula to calculate the Bad debt expense for the period
Bad debt expesne = Debit balance of Allowance account + Allowance for the period
Where
Debit balance of Allowance account = $400
Allowance for the period = Account receivables x percentage of allowance = $1,200,000 x 1% = $12,000
Placing values in the formula
Bad debt expesne = $400 + $12,000
Bad debt expesne = $12,400
Answer: C. open a cash account and invest in mutual funds holding high yielding common and preferred stocks
Explanation:
Investing in Mutual funds which hold high yielding common and preferred shares is the best option here. The dividends received will be high enough but will not be taxed too much as dividend tax is limited to 15% thereby saving the investment on taxes.
Also seeing as they will require the investment in other to buy a house in 5 years, they will need something that can be easily liquidated. Mutual funds are easy to liquidate from and so their investment here can be easily withdrawn when the time comes to allow them meet the house down payment.
Answer:
$584,000
Explanation:
Calculation to determine what must their amount of sales be
Using this formula
Amount of Sales = (Fixed costs + Target profit) / Contribution margin percentage
Let plug in the formula
Amount of Sales = [42,400+(40,000+63,600) / (106000/424000)
Amount of Sales =(42,400+103,600) / (106,000/424,000)
Amount of Sales=146,000/0.25
Amount of Sales = $584,000
Therefore what The amount of sales will be Cover-to-Cover Company is $584,000