Margin of Safety (DOLLARS) Budgeted – break even = 100,000-62500= 37500 (Percentage) 37.500/100.000= 37.5% (Units) 37500/250= 150 3.Compute the company’s margin of safety in units assuming the proposal is accepted. Margin of Safety (Dollars) 137500-58929= 78571 (Units) 78571/275= 286 4. Compute the increase or decrease in profit assuming the proposal is accepted, show the contribution Income Statement for current and proposed. Present Proposed Sales 100,000 137500 Variable expense 64000 80000 CM 36000 57500 Fixed cost 22500 244750 Net income 13500 32750 difference: 19250 4a. What is the operating leverage for the current and proposed?
| | | | International Trade Commission (ITC). | | Instructor Explanation: | Chapter 37 | | | | Points Received: | 1 of 1 | | Comments: | | | | 3. | Question : | (TCO 9) Which of the following will generate a demand for Country X's currency in the foreign exchange market? | | | Student Answer: | | Travel by citizens of Country X in other countries | | | | The desire of foreigners to buy stocks and bonds of firms in Country X | | | | The imports of Country X | | | | Charitable contributions by Country X's citizens to citizens of developing nations | | Instructor Explanation: | Chapter 38 | | | | Points Received: | 1 of 1 | | Comments: | | | | 4. | Question : | (TCO 9) If the exchange rate between the U.S. dollar and the Japanese yen is $1 = 200 yen, then the dollar price of the yen is | | | Student Answer: | | $.005.
| Question: | (TCO 1) In a situation where the investor exercises significant influence over the investee, which of the following entries is not actually posted to the books of the investor? 1) Debit to the Investment account and a Credit to the Equity in Investee Income account. 2) Debit to Cash (for dividends received from the investee) and a Credit to Dividend Revenue. 3) Debit to Cash (for dividends received from the investee) and a Credit to the Investment account. | | Your Answer: | | | Entries 1 and 2 | | INCORRECT | | | Entries 2 and 3 | | | | | Entry 1 only | | | | | Entry 2 only | | CORRECT ANSWER | | | Entry 3 only | | | | | | Points Received: | 0 of 2 | | Comments: | | 4.
ii) Compliance with U.S. GAAP for Tesco: Tesco was also incorrect in their dealing of the refund from a customer’s perspective. Article 605-50-25-10 on “Customer's Accounting for Certain Consideration Received from a Vendor” states that “a rebate or refund of a specified amount of cash consideration… shall be recognized as a reduction of the cost of sales based on a systematic and rational allocation of the cash consideration offered to each of the underlying transactions” (FASB ASC). This means that Tesco should not have recorded the £750 million as sales
Question 2 Complete Mark 1.00 out of 1.00 Flag question Question text An import quota is Select one: a. the fee an importing firm must pay to the domestic government on each unit it brings into the domestic market. b. a fixed fee that an importing firm must pay the domestic government in order to have the legal right to sell the product in the domestic market. c. a restriction limiting the quantity of imported goods that can legally enter a domestic market. d. none of the statements associated with this question are correct. Question 3 Complete Mark 1.00 out of 1.00 Flag question Question text How can a firm in a merger avoid antitrust action by the government?
You decide week 6 The stock should not be purchase by Mr. Jones. Mr. Jones acquiring the assets, liabilities and also would inherit the contractual obligations of the selling corporation, would, be the results of the purchase. In lay terms, he has bought the existing Smithon Corporation and he is responsible of ensuring daily operations run efficiently but the tax aspect of acquisition he is responsible for existing and any future tax liabilities that the selling corporation had. It would be my advice for Mr. Jones to not buy the stock because of the liability of current and future tax obligations which Mr. Jones would incur from the purchase of the stock. Since the tax identity of Smithon corporation would have not ceased, it is not
By doing this, we can be seen that this transaction is for commercial purpose, so the profit for selling two lots which is $400,000 is added to assessable income (FCT v Whitfords Beach Pty Ltd-82 ATC 403). Conclusion: In conclusion, the first transaction is not assessable income because it has been acquired before 20th September 1985. Due to Mary had merely realized its capital assets, so the second transaction is not assessable income as well. And under The Taxation Ruling TR92/3, the third transaction is assessable income by showing the action is for commercial
However, if the claimant receives a lump sum, the claimant excludes that amount but may be taxed on any yield from the investment of the lump sum. On the other hand, if a casualty insurer invests the same lump sum and pays the investment yield to the claimant in the form of a structured settlement, no part of this investment yield is taxable to the claimant. (Little, Meyers, 2012, para. 12). Conclusion: If the lawsuit can be collected on an annuity basis in a structured settlement, then John’s fee could potentially be non-taxable.
FIN 540 Midterm Exam 100% Correct Answer http://www.homeworkarena.com/fin-540-midterm-exam-100-correct-answer Question 1 Which of the following statements is most CORRECT? The primary rationale for most operating mergers is synergy. Question 2 Which of the following is generally NOT true and an advantage of going public? Question 3 Which of the following statements is NOT Question 4 Which of the following statements about valuing a firm using the APV approach is most Question 5 Which of the following statements is most CORRECT? Question 6 Financial Accounting Standards Board (FASB) Statement #13 requires that for an unqualified
Market failure refers to a situation in which the market does not allocate resources efficiently. ANSWER: T TYPE: T KEY1: D SECTION: 2 OBJECTIVE: 7 RANDOM: Y [cxxii]. Since taxes affect only the price paid by the buyer, they cannot have an adverse impact on the allocation of society’s resources. ANSWER: F TYPE: T KEY1: C SECTION: 2 OBJECTIVE: 7 RANDOM: Y [cxxiii]. A monopolist has market power.