The most recent financial statements for Williamson, Inc., are shown here (assuming no income taxes): Income Statement Balance Sheet Sales $ 6,700 Assets $22,050 Debt $ 8,050 Costs 3,850 Equity 14,000 Net income $ 2,850 Total $22,050 Total $22,050 Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year’s sales are projected to be $7,906. What is the external financing needed?
Currently the organization expects that their forecast for labor requirements is essentially constant from the previous year. This means the forecast for next year will be taken as given. b. Fill in the empty cells in the forecast of labor availabilities in Table 1.1. c. Conduct an environmental scan. Based on the environmental data, what factors in the environment suggest Tanglewood might have difficulty filling their vacancies in the future?
1B You decide to save money by changing your electricity supplier. Think about the cost and the price promise. Which supplier will you choose? I would choose E-city company because is the cheapest one and they mentioned that the price will not increase on the next year. 1C All bills are shared equally between the four of you.
[3] http://www.irs.gov/businesses/small/article/0,,id=146335,00.html It is important to determine if the taxpayer martially participates because this classifies the income as active or passive. Passive activity losses are non-deductable from active and portfolio income. This is why it is important to determine if the taxpayer martially participates in the business activity. PROBLEMS: 7-46) The $30,000 loss is considered a passive loss and can only be deducted against passive income, it is therefore suspended and carried forward to future years to offset potential passive income in those years. Mary has no martially participation in the rental activity, therefore the loss is considered
Remember that supply is a schedule of how many units suppliers are willing to offer at different prices. When costs fall, the supply curve increases or shifts to the right. Since changes in producer costs is not a demand factor, there would be no impact on demand. | | | | Points Received: | 10 of 10 | | Comments: | | | | 2. | Question : | (TCO A) Ceteris paribus, coffee Brand X and coffee Brand A are substitutes in consumption.
Assume that the bond is a zero coupon bond (i.e., the only payment is the one at maturity) and that company Z has no other debt outstanding. Other relevant parameters are as follows: • • • • • Company Z current asset value: €100 million Total bond issue face value: €80 million (i.e., leverage of 80%) Risk free interest rate: 2% Standard deviation of return on company Z assets: 30% Bond maturity date: one year from
EXAMPLE 1: Jeff's fixed income is $346 per week. What amount should he use when making up his conservative budget? $356 because it does not change if fixed! EXAMPLE 2: Jeff's variable income is $237 per week. What amount should he use when making up his conservative budget?
When considering how Small Fries Inc and its other facilities should record the costs associated with OSHA compliance on their financial statements as either capitalized as an asset or charged to expenses. We should consider the types of repairs that will be done. Whether they are ordinary repairs or major and extraordinary repairs that will benefit the companies more than one year or operating cycle. According to ASC 360 -10- 25- 5 Planned Major Maintenance Activities, The use of the accrue-in-advance (accrual) method of accounting for planned major maintenance activities is prohibited in annual and interim financial reporting periods. GAAP defines a company's assets as the things it owns or controls that have measurable future economic
Problem 3.2 A – How does the income statement differ from the one presented in Exhibit 3.1 The largest difference between income statement for this question in compared to Exhibit 3.1 B – Did Best Care spend $367,000 on new fixed assets during the fiscal year 2011? If not, what is the economic rationale behind its reported depreciation expense? No, they were not new fixed assets for 2011. In accordance with GAAP, Best Care would derive by taking the historical cost, less the salvage value and dividing by the life expectancy in years. In addition it is considered a non-cash expense since the actual payment could have occurred many years before the expense is calculated.
It assumes average variable costs are constant per unit of output, at least in the range of likely quantities of sales. (i.e., linearity). It assumes that the quantity of goods produced is equal to the quantity of goods sold (i.e., there is no change in the quantity of goods held in inventory at the beginning of the period and the quantity of goods held in inventory at the end of the period). In multi-product companies, it assumes that the relative proportions of each product sold and produced are constant (i.e., the sales mix is