All categories

2 years ago

A budgeting strategy of setting aside at least 10% of after-tax income for saving and investing.

1 answer:

3 0

Pay yourself first is the budgeting strategy that is achieved by setting aside minimum of 10% of after-tax income for saving.

The term called "Pay yourself first" means a finance strategy which helps to increase and ensure consistent savings and investment.

The goal of the budgeting strategy called "Pay yourself first" helps to ensure income is first saved or invested before the expenses start to decline the income..

In conclusion, Pay yourself first is the budgeting strategy that is achieved by setting aside minimum of 10% of after-tax income for saving.

You might be interested in

An automated assembly robot that cost $400,000 has a depreciable life of 5 years with a $100,000 salvage value. The MACRS deprec

OLga [1]

Answer:

book value at the end of year 3 = $115,200

Explanation:

$\left[\begin{array}{ccccc}$Year&$Beginning&$Dep-Expense&$Acc. \: Dep&$Ending\\0&-&-&-&400,000\\1&400,000&80,000&80,000&320,000\\2&320,000&128,000&208,000&192,000\\3&192,000&76,800&284,800&115,200\\\end{array}\right]$

Year 1 Depreciation expense

400,000 x 20% = 80,000

Year 2 Depreciation expense

400,000 x 32% =128,000

Year 3 Depreciation expense

400,000 x 19.2% = 76,800

Book value = carrying value - depreciation for the year

purchase - accumulated depreciation

3 0

3 years ago

Spalkyn, a footwear company, allows its customers to shop online on its website or mobile app or at its physical stores. At the

Svetach [21]

Answer:

Ownership utility

Explanation:

Based on the information provided within the question it can be said that in this scenario Spalkyn most likely provides Ownership utility. This term refers to when a company allows for the orderly transfer of their goods or services to the buyer. Which is what Spalkyn does by giving their customers various different options when purchasing their goods, so that they can choose whichever option is easiest for them.

6 0

3 years ago

Hank is a U.S. citizen and is doing a three to six-year assignment as a sales executive in Paris for a French company, which beg

Maurinko [17]

Answer:

The answer is: E) None of his salary can be excluded from gross income because Hank must reside overseas for the entire year

Explanation:

According to the IRS's Foreign Earned Income Exclusion (and Requirements) a US citizen can claim up to $105,900 (in 2019) of his gross income to be excluded from gross income in the US only if that person resided in the foreign country for at least 330 days in the last year.

3 0

4 years ago

Ten years ago, Stigler Company issued $100 par value preferred stock yielding 6%. The preferred stock is now selling for $102 pe

Alik [6]

Answer:

Current Yield = 0.05882 or 5.882% rounded off to 5.88%

Explanation:

A current yield refers to the annual return that a security provides based on the interest or dividend payments it makes expressed as a percentage of it current price. Thus, the current yield on preferred stock can be calculated as follow,

Current Yield - Preferred stock = Dividend per year / Current price

Dividend per year = 100 * 0.06 = $6 per year

Current Yield = 6 / 102

Current Yield = 0.05882 or 5.882% rounded off to 5.88%

4 0

3 years ago

Harper, Inc., acquires 40 percent of the outstanding voting stock of Kinman Company on January 1, 2020, for $347,200 in cash. Th

Goshia [24]

Answer:

Kinman Company 272,000 debit

Royalties Kinman Co 54,000 debit

Building Kinman Co 21,200 debit

Cash 347,200 credit

--to record the purchase--

sales revenue 9,960 debit

account receivables 9,960 credit

inventory 6,972 debit

cost of goods sold 6,972 credit

--to record the unsold part of the inventory in Kinman--

Cash 6,000 debit

Kinman Company 6,000 credit

-- to record dividends--

loss on investment 18,240 debit

retained earnings 9,680 debit

Kinman Company 27,920 credit

--to record net loss of Kinman--

Explanation:

60% of Kinman Company:

680,000 x 40% = 272,000

Excess in Market value of building:

117,800 - 64,800 = 53,000

53,000 x 40% = 21,200

Royalty agreement market value: 135,000

135,000 x 40% = 54,000

Total Value:

272,000 + 21,200 + 54,000 = 347,200

now, we must "unrecord" the unsold part of the inventory of Kinman as it is now considered a intra-entity transaction.

Sales Revenue:

24,900 x 40% = 9,960

Cost of Good Sold:

77,700 x 24,900/111,000 x 40% = 6,972

Dividends: they are not considered gain but a distribution of cash from Kinman to us.

15,000 x 40% = 6,000

Losses impact the equity thus, decrease the Kinman Company account

45,600 + 24,200 = 69,800

69,800 x 40% = 27,920

The comprehensive loss will directly decrease retained earnigns rather a loss directly.

45,600 x 40% = 18,240

24,200 x 40% = 9,680

The rest of the transactions occurs in 2021 and we are only asked for 2019/2020

4 0

3 years ago