Answer and Explanation:
The computation is shown below:
The amount that should be distributed to the preferred stockholder would be equivalent to the aggregate par value of the preferred stock i.e. $1.8 million and the remaining value would be distributed to the common stockholders i.e.
= $2 million - $1.8 million
= $0.2 million
Hence, the same would be considered
At the end of 2017, Buckeyes Industries had a deferred tax asset account with a balance of $28 million attributable to a temporary book-tax difference of $70 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $75 million. Buckeyes has no other temporary differences. Taxable income for 2018 is $200 million and the tax rate is 40%
Prepare the journal entry(s) to record income taxes assuming it is more likely than not that one-fourth of the deferred tax asset will not ultimately be realized.
Taxation is a term for when a taxing authority, usually a government, levies or imposes a financial obligation on its citizens or residents. Since ancient times, paying taxes to governments or officials has been a fundamental aspect of civilisation.
Deferred tax assets and liabilities are categorized in what ways on the balance sheet?If a reporting firm submits a classified balance sheet, deferred tax assets, liabilities, and any associated valuation allowance shall be classified as noncurrent.
Asset/liability strategy : Financial Accounting Standard (FAS) 109 Accounting for Income Taxes (FASB, 1992) outlines the current accounting for deferred taxes and mandates that firms account for taxes using the asset/liability model.
A delayed tax liability typically arises when the government's accounting practices diverge from those of a conventional business. One frequent illustration is the depreciation of fixed assets. Companies often use a straight-line depreciation approach to disclose depreciation in their financial accounts.
A "temporary difference" is the distinction between the carrying value and the tax base. The temporary difference is multiplied by the tax rate to determine the deferred tax liability. The only thing left to do is to calculate the difference once the deferred tax due has been established.
Answer : Taxes total 200, however there are additionally 70 million and in 2018 there is also.
To Learn more about Tax, Refer:
https://brainly.com/question/26316390
#SPJ2
Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $2,948,125. Overhead is allocated to the three products on the basis of direct labor hours. The products have the following budgeted production volume and direct labor hours per unit:
Budgeted Production Volume Direct Labor Hours Per Unit
Flutes 2,000 units 2.0
Clarinets 1,500 3.0
Oboes 1,750 1.5
a. Determine the single plantwide overhead rate.
$ per direct labor hour
b. Use the overhead rate in (a) to determine the amount of total and per-unit overhead allocated to each of the three products, rounded to the nearest dollar.
Total Per Unit
Factory Overhead Cost Factory Overhead Cost
Flutes $ $
Clarinets
Oboes
Total $
Answer:
Results are below.
Explanation:
Giving the following information:
Flutes= 2,000*2 = 4,000 hours
Clarinets= 1,500*3 = 4,500 hours
Oboes= 1,750*1.5 = 2,625 hours
Total direct labor hours = 11,125
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 2,948,125 / 11,125
Predetermined manufacturing overhead rate= $265 per direct labor hour
Now, we can allocate to each product:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Flutes= 4,000* 265= 1,060,000
Clarinets= 4,500*265= 1,192,500
Oboes= 2,625*265= 695,625
Unitary:
Flutes= 265*2= 530
Clarinets= 265*3= 795
Oboes= 265*1.5= 397.5
Walnut has forecast sales for the next three months as follows: July 4,900 units, August 6,900 units, September 8,000 units. Walnut's policy is to have an ending inventory of 50% of the next month's sales needs on hand. July 1 inventory is projected to be 2,200 units. Selling and administrative costs are budgeted to be $20,000 per month plus $9 per unit sold. What are budgeted selling and administrative expenses for July
Answer:
the budgeted selling and administrative expenses for July is $64,100
Explanation:
The computation of the budgeted selling and administrative expenses for July is shown below:
= Budgeted selling & admin cost + (per unit sold × July units)
= $20,000 + ($9 × 4,900 units)
= $20,000 + $44,100
= $64,100
hence, the budgeted selling and administrative expenses for July is $64,100
We simply applied the above formula
Karen owns a designer clothing store in a small town. Since her store is the only store that offers designer outfits, she charges high prices for them. In the same town, another store deals in similar apparels but offers them at cheaper rates. Karen wants to maintain the exclusivity of her store. She is planning to slash prices. This move may incur losses. However, she is determined to give a tough competition to her competing store and ensure that it goes out of business.
Answer:
Antitrust law
Explanation:
The government uses Antitrust laws to prevent creation of monopolies. These laws ensure that no single firm prevents competition unreasonably. So, Karen's action of cutting down prices to eliminate the competitor will come under government scrutiny.
what would be the results of unemployment in any country?
Answer:
Less productivity, less product/efficiency for others and the place that they are at.
Marshall Motor Homes currently sells 1,160 Class A motor homes, 2,170 Class C motor homes, and 1,600 pop-up trailers each year. It is considering adding a midrange camper and expects that if it does so the firm can sell 800 of them. However, if the new camper is added, the firm expects its Class A sales to decline by 8 percent while the Class C camper sales decline to 1,950 units. The sales of pop-ups will not be affected. Class A motor homes sell for an average of $179,000 each. Class C homes are priced at $64,500, and the pop-ups sell for $5,700 each. The new midrange camper will sell for $26,900. What is the erosion cost of the new camper
Answer:
$30,801,200
Explanation:
Calculation to determine the erosion cost of the new camper
Erosion cost (new camper) = [0.08 × 1,160 × $179,000] + [(2,170 − 1,950) × $64,500]
Erosion cost (new camper)=$16,611,200+$14,190,000
Erosion cost (new camper) = $30,801,200
Therefore the erosion cost of the new camper will be $30,801,200
On July 1, Year 1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $7,200,000 of 8-year, 11% bonds at a market (effective) interest rate of 12%, receiving cash of $6,836,187. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.
Required:
1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1.
Year 1 July 1 Cash 309.236
Discount on Bonds Payable 3,690,764
Bonds Payable 46,000,000
2. Journalize the entries to record the following:
A. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the straight-line method.
B. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the interest method.
3. Determine the total interest expense for Year 1.
Answer:
Livingston Corporation
1.
Year 1 July 1
Debit Cash $6,836,187
Debit Discount on Bonds Payable $363,813
Credit Bonds Payable $7,200,000
To record bonds proceeds and liability.
2.
A. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the straight-line method.
December 31, Year 1:
Debit Interest Expense $418,738
Credit Bond Discounts $22,738
Credit Cash $396,000
To record interest expense for the first six months and the amortization of bond discounts.
B. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the interest method.
December 31, Year 1:
Debit Interest Expense $411,021
Credit Bond Discounts $15,021
Credit Cash $396,000
To record interest expense for the second six months and the amortization of bond discounts.
3. Determine the total interest expense for Year 1.
Total interest expense for Year 1:
Straight- Effective
Line Method Interest Method
December 31, Year 1 $418,738 $410,171 ($6,836,187 * 6%)
= Cash payment + Semi-annual
Amortization of bonds discount
= ($396,000 + $22,738)
Explanation:
a) Data and Calculations:
Face value of bonds issued = $7,200,0
Cash received = $6,836,187
Total bonds discount = $363,813 ($7,200,000 - $6,836,187)
Period of bonds = 8 years
Interest rate of bonds = 11%
Effective interest rate = 12%
Semi-annual cash payment = $396,000 ($7,200,000 * 11% * 6/12)
First interest expense on December 31 Year 1 = $410,171 ($6,836,187 * 12% * 6/12)
Amortization of bond discount for the first six months = $14,171 ($410,171 - $396,000)
Bond balance after the first six months = $6,850,358 ($6,836,187 + $14,171)
Second interest expense on June 30, Year 2 = $411,021 ($6,850,358 * 6%)
Amortization of bond discount for the second six months (June 30, Year 2) = $15,021 ($411,021 - $396,000)
Bond balance on June 30, Year 2 = $6,865,379 ($6,850,358 + $15,021)
Straight-line method amortization:
Semi-annual amortization of bond discount = $22,738 ($363,813/16)
Interest expense = $396,000
What macroeconomic goal is Real GDP used to measure for?
Answer: Economic growth
Explanation:
Some of the macroeconomic goals that we've include economic growth, low inflation, low unemployment, improvement on standard of living, balance of payment equilibrium etc.
Real gross domestic product refers to the measure of the output in an economy with the inflation in the economy taken into consideration and it has been adjusted with respect to the inflation. The real gross domestic product measures the economic growth rate.
Wright Corp. is considering the purchase of a new piece of equipment, which would have an initial cost of $1,000,000 and a 5-year life. There is no salvage value for the equipment. The increase in cash flow each year of the equipment's life would be as follows: Year 1 $ 379,000 Year 2 $ 354,000 Year 3 $ 289,000 Year 4 $ 234,000 Year 5 $ 189,000 What is the payback period
Answer:
The payback period is 2 years and 337 days to cover the initial investment.
Explanation:
Giving the following information:
Cash flows:
Year 1 $ 379,000
Year 2 $ 354,000
Year 3 $ 289,000
Year 4 $ 234,000
Year 5 $ 189,000
Initial investment= $1,000,000
The payback period is the time required for the cash flows to cover the initial investment:
Year 1= 379,000 - 1,000,000= -621,000
Year 2= 354,000 - 621,000= -267,000
Year 3= 289,000 - 267,000= 22,000
To be more accurate:
(267,000 / 289,000)= 0.923*365= 337
The payback period is 2 years and 337 days to cover the initial investment.
This company purchased a truck at a cost of $12,000. The truck has an estimated residual value of $2,000 and an estimated life of 5 years, or 100,000 hours of operation. The truck was purchased on January 1, 2019, and was used 27,000 hours in 2019 and 26,000 hours in 2020. Refer to Flower Power. If the company uses the double-declining-balance depreciation method, what amount is the depreciation expense for 2020
Answer:
Annual depreaciation 2020= $2,400
Explanation:
Giving the following information:
Purchase price= $12,000
Salvage value= $2,000
Useful life= 5 years
To calculate the depreciation expense under the double-declining balance, we need to use the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
2019:
Annual depreaciation= 2*[(12,000 - 2,000) / 5]
Annual depreaciation= 4,000
2020:
Annual depreaciation= 2*[(10,000 - 4,000) / 5]
Annual depreaciation= $2,400
Type the correct answer in the box. Spell all words correctly.
Being debt-free within the next 15 years is an example of which goal?
Being debt-free within 15 years is an example of a
goal.
Reset
Next
Answer:
Being debt-free within 15 years is an example of a long-term goal.
Explanation:
One main characteristic of a long-term goal is that it involves a planning horizon that is more than 5 years during which some thoughts are paid to the goal, and the means of achieving it are marshalled out, and rigorously pursued. Long-terms goals are best broken into manageable, short-term, and medium-term goals to enable the decision-maker to accomplish her goal. The future is always uncertain, to achieve a long-term goal you must remain motivated.
GYAO Inc.'s bonds currently sell for $1,275. They pay a $80 annual coupon, have a 25-year maturity, and a $1,000 par value, but they can be called in 5 years at $1,080. Assume that no costs other than the call premium would be incurred to call and refund the bonds, and also assume that the yield curve is horizontal, with rates expected to remain at current levels on into the future. What is the difference between this bond's YTM and its YTC? (Subtract the YTC from the YTM; it is possible to get a negative answer.)
Answer: 2.46%
Explanation:
To solve this, we need to know the yield to call which will be:
FV = Call price = -$1,080.00
PV = Bond price = $1,275.00
PMT = Coupon = -$80.00
N = 5
Using financial maturity, the yield to call will be:
= Rate(5,80,-1275,1000) = 3.42%
The yield to maturity will be:
FV = Face value = -$1,000.00
PV = Bond price = $1,275.00
PMT = -$80.00
N = 25
Using the financial calculator
Yield to maturity = Rate(25,80,-1275,1000) = 5.87%
The difference between the yield to call and the yield to maturity will then be:
= 3.42% - 5.87%
= -2.46%
Epicure Market prepares fresh gourmet entrees each day. On Wednesday, 80 baked chicken dinners were made at a cost of $3.50 each. A 10% spoilage rate is anticipated. At what price should the dinners be sold to achieve a 60% markup based on selling price
Answer:
The price of a Dinner= $6.22
Explanation:
Mark-up is the proportion of the product cost which is expected to be made as profit. In other words, it is profit expressed as a percentage of product cost.
To account for the spoilage rate of 10%, $3.50 unit cost would be consider as 90% of the cost. Thus, 100% of the cost would be given as follows:
Dinner cost = 100/(100-10)× 3.50= 3.89
The price of a Dinner = product cost + 60% of product cost
The price of a Dinner = 3.89 + 60%*3.89= $6.22
The price of a Dinner= $6.22
Chavoy Corporation was organized on July 1. The company's charter authorizes 100,000 shares of $10 par value common stock. On August 1, the attorney who helped organize the corporation accepted 800 shares of Chavoy common stock in settlement for the services provided (the services were valued at $9,600). On August 15, Chavoy issued 5,000 common shares for $78,000 cash. On October 15, Chavoy issued 3,000 common shares to acquire a vacant land site appraised at $51,000. Prepare the journal entries to record the stock issuances on August 1, August 15, and October 15.
Answer:
August 1
Dr Legal Expense $9,600
Cr Common stock $8,000
Cr Paid Capital $1,600
August 15
Dr Cash $78,000
Cr Common stock $50,000
Cr Paid in Capital $28,000
October 15
Dr Land $51,000
Cr Common stock $30,000
Cr Paid in Capital $21,000
Explanation:
Preparation of the journal entries to record the stock issuances on August 1, August 15, and October 15.
August 1
Dr Legal Expense $9,600
Cr Common stock $8,000
(800 shares*$10 par value)
Cr Paid Capital $1,600
($9,600-$8,000)
(To record stock issuances)
August 15
Dr Cash $78,000
Cr Common stock $50,000
(5,000shares*$10 par value)
Cr Paid in Capital $28,000
($78,000-$50,000)
(To record stock issuances)
October 15
Dr Land $51,000
Cr Common stock $30,000
(3,000shares*$10 par value)
Cr Paid in Capital $21,000
($51,000-$30,000)
(To record stock issuances)
Using the following categories, indicate the effects of the following transactions. Indicate the accounts affected and the amounts. (Enter any decreases to account balances with a minus sign.)
a. During the period, customer balances are written off in the amount of $11,600.
b. At the end of the period, bad debt expense is estimated to be $9,600.
Answer:
Note: See the attached excel for the Indication of the effects of the two transactions.
Explanation:
From the attached excel file, we have:
a. During the period, customer balances are written off in the amount of $11,600.
Assets increase as the Allowance for doubtful accounts increases by $11,600; but Assets also decreases at the same as Accounts receivable decreases by $11,600.
b. At the end of the period, bad debt expense is estimated to be $9,600.
Assets decrease as the Allowance for doubtful accounts decreases by $9,600; and Stockholders' Equity also decreases as Bad debt expense increases by $9,600.
Bengal Co. provides the following unit sales forecast for the next three months: July August September Sales units 5,800 6,500 6,360 The company wants to end each month with ending finished goods inventory equal to 30% of the next month's sales. Finished goods inventory on June 30 is 1,740 units. The budgeted production units for July are:
Answer:
Production= 6,010
Explanation:
Giving the following information:
July August
Sales units 5,800 6,500
Finished goods inventory on June 30 is 1,740 units.
To calculate the production for July, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
Production= 5,800 + (6,500*0.3) - 1,740
Production= 6,010
Impact of Treasury Financing on Bond Prices The Treasury periodically issues new bonds to finance the deficit. Review recent issues of the Wall Street Journal or check related online news to find a recent article on such financing. Does the article suggest that financial markets are expecting upward pressure on interest rates as a result of the Treasury financing
Answer:
When the treasury bonds are restricted to purchase it creates pressure on other securities and interest rates tend to move upwards.
Explanation:
When interest rates more upwards then cost of borrowing is increased. This increase in cost of borrowing creates pressure on the profits of private sector. The public sector benefits from this increase in interest rates. When government is in trouble and financing is limited then these measures are used to run the economy.
Isaiah is a Financial Quantitative Analyst for a major stock investment company. What does Isaiah do on a daily basis as a part of his job?
He researches, analyzes, and summarizes information about fraud.
He assesses financial situations using mathematical models.
He analyzes tax information using mathematical formulas.
He manages the paperwork for buying and selling securities.
Answer:
He researches, analyzes, and summarizes information about fraud.
Answer:
A
Explanation:
He researches, analyzes, and summarizes information about fraud.
The management of Gibraltar Brokerage Services anticipates a capital expenditure of $26,000 in 2 yr for the purpose of purchasing new computers and has decided to set up a sinking fund to finance this purchase. If the fund earns interest at the rate of 11%/year compounded quarterly, determine the size of each (equal) quarterly installment that should be deposited in the fund. (Round your answer to the nearest cent.)
Answer:
$2,949.91.
Explanation:
The size of the quarterly installment can be determined by finding the (Payment) PMT amount using tie value of money principles.
Here I used a financial calculator to set my values and calculate PMT as :
PV = $0
N = 2 x 4 = 8
P/yr = 4
I = 11 %
FV = $26,000
PMT = ?
Therefore the (Payment) PMT is $2,949.91. The size of each (equal) quarterly installment should be $2,949.91.
McConnell Corporation has bonds on the market with 12 years to maturity, a YTM of 10.0 percent, a par value of $1,000, and a current price of $1,226.50. The bonds make semiannual payments. What must the coupon rate be on these bonds
Answer:
13.28%
Explanation:
The computation of the coupon rate is shown below
But before that determine the PMT
Given that
NPER = 12 × 2 = 24
RATE = 10% ÷ 2 = 5%
PV = $1,226.50
FV = $1,000;
The formula is shown below
= PMT(RATE;NPER;-PV;FV;TYPE)
After applying the above formula, the monthly payment is
= $66.41 × 2
= $132.82
Now the coupon rate is
= $132.82 ÷ $1,000
= 13.28%
Jonathan was granted enough nonqualified stock options (NQSOs) to purchase 10,000 shares of Capital, Inc. stock at $10 per share two years ago. He exercised the options this year when Capital, Inc. stock was $25 per share. Three years later, Jonathan sells the 10,000 shares for $100 per share. Which of the following statements regarding the tax ramifications of Jonathan's transactions are CORRECT?
Capital gains tax is due the year the options are granted to Jonathan.
Jonathan's cost to exercise all of the NQSOs is $50,000.
Jonathan will have a $750,000 capital gain when he sells the stock at $100 per share.
Jonathan will have an additional $150,000 included in his W-2 compensation income, which is a type of ordinary income, subject to payroll taxes this year.
A) I, II, and III
B) III and IV
C) I and II
D) I, II, III, and IV
Answer: B. III and IV
Explanation:
Based on the information given, we should note that the capital gain will be:
= $1,000,000 - $250,000
= $750,000
Also, the bargain amount will be calculated as:
= 10000 × ($25 - $10)
= 10000 × $15
= $150,000
We should also note that the statement in option 1 that "Capital gains tax is due the year the options are granted to Jonathan" is wrong. Capital gain will only arise when the shares have been sold, therefore option I is incorrect.
Based on the information above, the answer is option III and IV.
Taxes that are paid by individuals on all money earned, including investments, are
Answer:
Personal Income Taxes
Explanation:
As the name of the tax implies, personal income taxes are simply taxes that are paid by individuals. A personal income tax is a percentage of the total amount of income a person received during a period of time, often a year, through different means: salary, permanent investments, occasional investments, and so on.
In some countries, personal income taxes are not levied on investment income in order to promote investment.
Motorcycle Manufacturers, Inc. projected sales of 51,100 machines for the year. The estimated January 1 inventory is 6,460 units, and the desired December 31 inventory is 7,130 units. What is the budgeted production (in units) for the year
Answer:
51,770 units
Explanation:
With regards to the above, the budgeted production (in unit) for the year is computed as;
= Sales - Beginning inventory + Ending inventory
Given that ;
Sales = 51,100
Beginning inventory = 6,460
Ending inventory = 7,130
Budgeted production in units for the year = 51,100 - 6,460 + 7,130 = 51,770 units
1. A deposit of $100,000 is made to an investment account today. At the end of each of the next four years, $5000 must be paid out to a beneficiary, and the account liquidated at the end of year four. If the liquidation value is $100,000 the account has earned an annual internal rate of return of
Answer: 5%
Explanation:
Use an Excel worksheet to determine the internal rate of return:
Investment or Cost = $100,000. This will be negative in the computation.
Cashflow = $5,000 per year
Fourth year cashflow = 5,000 + liquidation value = $105,000
IRR = 5%
How does a flourishing business affect trade?
Answer: Flourishing services trade could boost world growth ... it easier to export such services as business- process outsourcing, medical diagnostics or education.
Explanation: Trade involves the transfer of goods or services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market. An early form of trade, barter, saw the direct exchange of goods and services for other goods and services.[1][need quotation to verify] Barter involves trading things without the use of money.[1] When either bartering party started to involve precious metals, these gained symbolic as well as practical importance.[citation needed] Modern traders generally negotiate through a medium of exchange, such as money
1) The company purchased $12,100 of merchandise on account under terms 3/10, n/30. 2) The company returned $1,600 of merchandise to the supplier before payment was made. 3) The liability was paid within the discount period. 4) All of the merchandise purchased was sold for $18,200 cash. What is the gross margin that results from these four transactions
Answer:
$8,910
Explanation:
Trading Account for the year
Sales $18,200
Less Cost of Sales
Purchases $12,100
Less Purchases Returns ($1,600)
Less Discounts Received ($12,100 x 10%) ($1,210) ($9,290)
Gross Profit $8,910
Conclusion :
thus, the gross margin that results from these four transactions is $8,910.
Sullivan Company has a Cash account balance of $8,112.62, and on September 30, the bank statement indicated a balance of $9,098.55. Using the following data, prepare a bank reconciliation and any necessary journal entries for Sullivan Company on September 30.
a. Deposits in transit amounted to $3,358.19.
b. Outstanding checks totaled $1,251.12.
c. The bank erroneously charged a $215 check of Solomon Company against the Sullivan bank account.
d. A $15 bank service charge has not yet been recorded by Sullivan Company.
e. Sullivan Company neglected to record $3,000 borrowed from the bank on a 10%, 6-month note. The bank statement shows the $3,000 deposit.
f. An NSF check in the amount of $640 from J. Martin in payment on account has been returned.
g. Sullivan Company recorded a $107 payment for repairs as $1,070.
Answer and Explanation:
The preparation of the bank reconcilliation statement is presented below:
Bank Books
Balance $9,089.55 $8,112.62
Add: deposit in transit $3,358.19 Add: note payable borrowed $3,000
Less: outstanding checks $1,251.12 Add: error in recording $963
Add: error by bank $215 ($1,070 - $107)
Less: bank charges $15
Less: NSF check $640
Updated balance $ 11,420.62 Updated balance $ 11,420.62
The journal entries are shown below:
On July 31
Cash $3,000
To Notes payable $3,000
(Being note payable is recorded)
Cash $963
To Repair expenses $963
(being error is recorded)
Bank charges $15
To Cash $15
(Being cash paid is recorded)
Account receivables $640
To Cash $640
(Being cash paid is recorded)
Lake Power Sports sells jet skis and other powered recreational equipment. Customers pay one-third of the sales price of a jet ski when they initially purchase the ski, and then pay another one-third each year for the next two years. Because Lake has little information about the ability to collect these receivables, it uses the cost recovery method to recognize revenue on these installment sales. In 2020, Lake began operations and sold jet skis with a total price of $690,000 that cost Lake $345,000. Lake collected $230,000 in 2020, $230,000 in 2021, and $230,000 in 2022 associated with those sales. In 2021, Lake sold jet skis with a total price of $1,860,000 that cost Lake $1,116,000. Lake collected $620,000 in 2021, $430,000 in 2022, and $430,000 in 2023 associated with those sales. In 2023, Lake also repossessed $380,000 of jet skis that were sold in 2021. Those jet skis had a fair value of $142,500 at the time they were repossessed. In 2020, Lake would recognize realized gross profit of:
Answer:
$115,000
Explanation:
Calculation to determine what Lake would recognize realized gross profit
First step is to calculate the Gross profit percentage
Gross profit percentage = [($690,000 − $345,000)/$690,000]
Gross profit percentage =$345,000/$690,000
Gross profit percentage =0.5*100
Gross profit percentage = 50%
Now let calculate the realized gross profit
Realized gross profit=50% × $230,000
Realized gross profit = $115,000
Therefore Lake would recognize realized gross profit of:$115,000
Fill in the blanks with the words given below.
a. Cancer
b. malignant tumor
c. benign tumor
d. metastasis
e. carcinoma
1. A________is a lump of abnormal cells that, although growing out of control, remains at its original site.
2. A________is an abnormally growing mass of cells that is actively spreading through the body.
3. A_________ is the spread of cancer cells from their site of origin to other sites in the body.
4. An individual with a malignant tumor is said to have_________
5. The most common type of cancer is a_______ this type always originates in tissues that line .
Answer:
1. Benign tumor.
2. Malignant tumor.
3. Metastasis.
4. Cancer
5. Carcinoma
Explanation:
A tissue can be defined as a group of cells that are structurally similar and in close proximity. Tissues are generally responsible for performing specific functions in living organisms such as humans, animals and plants. Therefore, tissues in living organisms function together as a unit.
A tumor can be defined as an abnormal mass of tissue formed when various body cells grow and divide more than its required or fail to when necessary (required). Thus, it usually degenerate into cancerous growths (cancer).
Some of the characteristics and features of tumors and cancer include the following;
1. A benign tumor is a lump of abnormal cells that, although growing out of control, remains at its original site.
2. A malignant tumor is an abnormally growing mass of cells that is actively spreading through the body.
3. A metastasis is the spread of cancer cells from their site of origin to other sites in the body.
4. An individual with a malignant tumor is said to have cancer.
5. The most common type of cancer is a carcinoma this type always originates in tissues that line.
Explain the theory behind the free cash flow valuation approach. Why are the free cash flows value relevant to common equity shareholders when they are not cash flows to those shareholders, but rather are cash flows into the firm?
Answer:
See explanation
Explanation:
The free cash flows value relevant to common equity shareholders because they consists of cash that can be distributed to shareholders as dividends. In other words this is Distributable Cash.