If production is kept the same, the company is predicted to sell every unit produced which would avoid a stockpile of inventory and also safeguarding an extra 5,000,000 units in ending inventory in case sales go above 30,000,000. In the end, B.E. Company’s net income would increase by a substantial amount due to an increase in sales rather than an increase in ending
This is partly a practical decision given that we have not provided rates beyond 20 year term in the book. We use the quoted value for $250,000 policies pro-rated to the size of policy we need, and this is incorrect — policy premiums per dollar decline as the size of the policy rises, since some costs are fixed. However, it is the best we have, and the difference will not be
A 20% discount of original price for a period of one week. In the second special sale will offer a 30% discount from its original price per unit. According as remaining inventory the company will be clearance with a 50% and offer free one jean with the purchase. The goal of the proposal is to bring the inventory to the minimum amount available to avoid storage costs and prepare for the upcoming shopping season. The experience with excess inventory event has prompted owners of La Boutique C, to be more careful in buying merchandise after the output has no time.
In the case of Huffman Trucking, these ratios impact their customer base, including their contracts with the United States Government and various automotive parts suppliers. The asset turnover ratio for Huffing Trucking was 1.3 times. This was calculated by dividing the company’s net sales by the average assets, which resulted in $1.30 sales for every dollar that is spent within the company. The company’s profit margin is quite high, which is at 5.3%. Profit margins are found by dividing net income by net sales.
This is done by focusing on key components of taxable income. How can timing strategies and income-shifting strategies be used to affect deductions for adjusted gross income (AGI), dependency exemptions, itemized deductions, and tax credits? Provide at least one example for each. Postponing income until the following year is one way to lower your AGI, paying into a 401K allows one to defer paying taxes on a portion of their income until a later date. Shifting a portion of income to family members can also lower ones tax bill, you are allowed to give $12,000 per year to each recipient without incurring a gift tax but watch out for kiddie tax rules before considering this option.
General Priciple – Performance are only recorded when the target is proable to be acheived Sooner and Later Inc On January 1, 2006, Sooner or Later Inc. granted 1,000 “at-the-money” employee stock options (i.e., the exercise price was equal to the stock price on the grant date). To align the compensation of the employees with the financial performance of the company, the award will vest only if cumulative revenue over the following three-year reporting period is greater than $10 million and the employees are still employed by Sooner or Later. As of the date of the grant, management believes it is probable that the company will achieve cumulative revenue in excess of $10 million over the following threeyear period. Each award has a grant-date fair value of $9. Sooner or Later’s valuation professionals have indicated that if the revenue target was factored into the fair value assessment, the grant-date fair value would be $6.
This alone would help rid over half of the deficit. Other ideas Brandon suggested were lifting the payroll tax cap on those earning above a certain amount per year, raising the retirement age to 68 or 70, a means-test, and decreasing the annual cost of living adjustment to Social Security recipients by 0.3 percent
Incremental budgeting is when you take last year’s budget and add more or less to it depending on what you’re looking to do with your budget for the year. Some companies like this budget because if you’re meeting your budget every year it will stay the same. If you don’t use your budget it will reduce the next year. Some people
This year, Lacey, DLK’s president, decided to seek additional funds to finance DLK’s working capital. CME declined to extend additional funds because of the money already invested in DLK. High Tech Venture Capital Inc. proposed to lend DLK $100,000, but at a 10% premium over the prime rate. (Other software manufacturers in the same market can borrow at a 3% premium.) First Round Capital proposed to invest $50,000 of equity capital into DLK, but on the condition that the investment firm be granted the right to elect five members to DLK’s board of directors.
is a tax-financed system that pays benefits from taxes that are invested to return principal and interest to workers when they retire. 4. is a tax-financed retirement system that finances pensions by taxing workers each year and transferring the bulk of revenues obtained directly to retirees. 5. does not use taxes on workers to pay pensions to retirees. 6. The gross replacement rate: 7. measures a worker’s monthly retirement benefit divided by monthly earnings before taxes in the year prior to retirement.