1. Joshua currently owns a printing company. The total yearly
revenue of his business is $300,000...
1. Joshua currently owns a printing company. The total yearly
revenue of his business is $300,000 and total yearly cost is
$50,000. Joshua is considering going back to the university to earn
a master’s degree in engineering. The master’s degree takes a year
to complete. Joshua anticipates that after he graduates with a
master’s degree, he will be able to get a job with a salary of
$300,000 per year. The total cost of the degree is $60,000 and he...
INCOME STATEMENT
Edmonds Industries is forecasting the following income
statement:
Sales
$9,000,000
Operating costs excluding
depreciation...
INCOME STATEMENT
Edmonds Industries is forecasting the following income
statement:
Sales
$9,000,000
Operating costs excluding
depreciation & amortization
4,950,000
EBITDA
$4,050,000
Depreciation and amortization
900,000
EBIT
$3,150,000
Interest
720,000
EBT
$2,430,000
Taxes (40%)
972,000
Net income
$1,458,000
The CEO would like to see higher sales and a forecasted net
income of $2,551,500. Assume that operating costs (excluding
depreciation and amortization) are 55% of sales and that
depreciation and amortization and interest expenses will increase
by 15%. The tax rate, which...
"Tax Strategies for Business-Owned Properties" Don, the owner of
Watt Inc., has a building that he...
"Tax Strategies for Business-Owned Properties" Don, the owner of
Watt Inc., has a building that he bought for $2,500,000. It has
depreciated by $350,000. Now Don wants to sell it for $4,000,000.
He has heard about ordinary losses. He has heard about capital
losses. Unfortunately, Don does not know the difference between
these two types of losses. To add to the confusion, he doesn’t know
what the difference is between a realized and a recognized loss.
How would you explain...
David is a community care worker with a local support service.
He supports Geoff, aged 74,...
David is a community care worker with a local support service.
He supports Geoff, aged 74, who has muscular dystrophy and is
non-ambulant. David supports him with his personal hygiene and most
of his daily living activities. Part of Geoff’s support plan
includes going to the local footy once a fortnight. However, this
weekend the grand final is being held at the main football ground
in town. When Geoff and David get to the football ground, David
sees a few...
Wilma Company must decide whether to make or buy some of its
components. The costs of...
Wilma Company must decide whether to make or buy some of its
components. The costs of producing 64,200 switches for its
generators are as follows.
Direct materials
$29,600
Variable overhead
$44,100
Direct labor
$33,932
Fixed overhead
$82,400
Instead of making the switches at an average cost of $2.96
($190,032 ÷ 64,200), the company has an opportunity to buy the
switches at $2.67 per unit. If the company purchases the switches,
all the variable costs and one-fourth of the fixed costs...
Point/Counterpoint from chapter 14. Take a stand. Do you
agree or disagree? Write a minimum of...
Point/Counterpoint from chapter 14. Take a stand. Do you
agree or disagree? Write a minimum of one paragraph for each
one.
Chapter 14
Exporting E-waste: A Fair Solution?
Point
Yes Exporting is always and everywhere a win-win situation:
The more companies and countries export, the more they improve
market efficiency. Exporting enables companies to increase sales,
improve productivity, and diversify activities. Likewise, exporting
helps countries generate jobs, accelerate innovation, and improve
living standards. In broader terms, it promotes connections among...
Question 3.
Christopher Columbus sailed from
Portugal in 1793 and discovered the ‘New World’ after being...
Question 3.
Christopher Columbus sailed from
Portugal in 1793 and discovered the ‘New World’ after being on the
ship for several weeks. Many people on the voyage with him
developed Scurvy, characterized by bleeding under the skin. Today,
how people protect themselves against Scurvy, if they have to live
on a boat for several weeks?