They were given a 10% discount by the manufacturer. They paid $400 for shipping and sales tax of $3,000. Stine estimates that the machinery will have a useful life of 10 years and a residual value of $20,000. If Stine uses straight-line depreciation, annual depreciation will be • $3,760. • $4,072.
Explain Problem 2: Sale-Leaseback Sangamon signs a sale-leaseback with a buyer, Bismark. Under the terms of the contract, Bismark will pay $146,874 in cash to Sangamon for equipment and then immediately lease it back to Sangamon. The equipment originally cost $100,000 and had a carrying value of $80,000 on Sangamon’s books immediately prior to the transaction. In 5 years, the residual value of the leased equipment is estimated to be $20,000 when the lease terminates. The lease contract obligates Sangamon to make five equal annual payments of $30,000 to Bismark that begin immediately after the sale.
2. On January 1, 2007, Fire wire Company acquired 40 percent of Browser Company's common stock. For this acquisition, Fire wire paid $45,000 above book value. The full differential was attributed to equipment with a remaining life of ten years and zero salvage value at the date of acquisition. During 2007 and 2008, Browser reported net income of $90,000 and $50,000 and paid dividends of $40,000 and $60,000, respectively.
(five points) Question 2: Determine the total costs of direct materials for August purchases. (five points) Problem 2 - Russell Company has the following projected account balances for June 30, 20X2: Accounts payable | $40,000 | Sales | $800,000 | Accounts receivable | 100,000 | Capital stock | 400,000 | Depreciation, factory | 24,000 | Retained earnings | ? | Inventories (5/31 & 6/30) | 180,000 | Cash | 56,000 | Direct materials used | 200,000 | Equipment, net | 240,000 | Office salaries | 80,000 | Buildings, net | 400,000 | Insurance, factory | 4,000 | Utilities, factory | 16,000 | Plant wages | 140,000 | Selling expenses | 60,000 | Bonds payable | 160,000 | Maintenance, factory | 28,000 | Question 1: Calculate the budgeted net income for June 20X2. (five points) Question 2: Calculate the budgeted total assets as of June 30, 20X2. (five points) Problem 3 - Tylon's Hardware uses a flexible budget to develop planning information for its warehouse operations.
Both firms expect EBIT to be $ 90000. Ignore taxes. Q1) Rico owns $ 30,000 worth of XYZ’s stock.
We are provided with company's back ground which includes its operating capacity (150,000). Other information that is provided is the monthly operating costs while operating at capacity. It is also given that the brochures are sold at $17 per 100. The first part details the offer for a special order of 25,000 brochures. The offer is to buy these at $10 instead of the $17, which is the normal price.
20% (minus admin costs) will be refunded to the public in the form of a rebate or stimulus. 25% will be delivered to the Social Security trust to repay funds which were previously taken from the fund. 50% will pay down the national debt. All of the bonuses and rebates will be tax free. The next year’s budget will be guaranteed the final spend of the previous year with an increase of the inflationary rate plus 2%.
What is its ROE? ROE= profit margin*asset turnover*equity multiplier Asset turnover 3%= sales $100 million/$50 assets=2 equity multiplier=2 3%*2*2=12 3-6 Du Pont Analysis Donaldson & Son has and ROA of 10%, a 2% profit margin, and a return on equity equal to 15%. What is the company’s total assets turnover? What is the firm’s equity multiplier? ROA= 10%; Profit Margin =2%; ROE= 15% 10/2= S/TA=5 15/10=
Legalizing Immigrants Thesis statement : Research suggests that legalizing immigrants would be a stimulus to the United States’ economy because legalized workers contribute to the economy through taxes, legalized workers earn higher wages, and it would allow these legalized immigrants to have an education and training for a better and higher paying job. 1. Introduction to the paper a. There are currently 11+ million undocumented immigrants living in the United States (Hoefer et al., 2011) (Lynch et al., 2013). b.
In an article by Jake Berry he states, “It is set to cover 100 percent of the benefit payments to eligible citizens at least through 2037” (Berry, 03/2). Berry goes on to mention that afterwards it will still cover 78% of the retirees. Because the federal law forbids the Social Security administration from borrowing money, and is forced to rely solely on the taxes from taxable income, administrators are considering removing the taxable income cap to make up for predicted shortcomings. Currently, residents are taxed on the first $106,800 of their annual earnings (Berry, 03/2). Berry also mentions “A team of six lawmakers representing both major political parties is preparing to introduce a series of Social Security reforms, including changes in the funding formula and increasing the retirement age, that could mean millions of dollars in lost benefits” (Berry,