b. The company must have had zero net income in 2010. c. The company must have paid out half of its earnings as dividends. d. The company must have paid no dividends in 2010. e. Dividends could have been paid in 2010. Companies generate income from their "regular" operations and from other sources like interest earned on the securities they hold, which is called non-operating income. Lindley Textiles recently reported $12,500 of sales, $7,250 of operating costs other than depreciation, and $1,000 of depreciation.
The recording of the vendor booths were not accounted for in conformity with GAAP. Just for Feet recorded vendor allowances as receivables and advertising expenses before the related advertising or promotional programs took place. Most of the vendors that Just for Feet dealt with offered financial assistance to help pay for expenses which was termed “advertising co-op” or “vendor allowances.” Just for Feet received millions of dollars each year of this financial assistance from the major vendors to help subsidize advertising costs of its superstores. The vendors would pay
Answer: Because Mary Beth does not devote more than 750 hours to office management she has to treat the income as passive. This loss can only be applied to her passive income. 8-34 Mike and Sally Card file a joint return for the 2012 tax year. Their adjusted gross income is $65,000 and they incur the following interest expenses: Qualified Education Loans: 3500 Personal loans: 1000 Home Mortgage Loan: 4000 Loan for Stocks, Bonds, Securities: 15000 Investment income and related expenses amount to $7,000 and $500, respectively. What is Mike and Sally's interest deduction for the 2012 tax year?
Management wants to maintain the ending direct materials inventory at 60% of the following month's production needs. 4. Seventy percent of all purchases are paid in the month of purchase; the remaining 30% are paid in the subsequent month. 5. Watson's product requires 30 minutes of direct labor time.
Karen Olsson talks about how an American cannot live on the wages walmart offers their hourly employees. Jennifer Mclaughlin has worked for Wal-Mart for over three years now and earns $16,800 a year. “The way they pay you, you cannot make it by yourself without having a second job or someone to help you, unless you have been there 20 years or you’re a manager.” She states that Wal-Mart managers force her to work overtime, off the clock, and that practice is not only localized to her store only, it is a nationwide practice. “Wal-Mart settled similar lawsuits involving 67,000 workers in New Mexico and Colorado, reportedly paying more than $50 million.” (Olson, They Say I Say pg. 348) In a way to make sure unions do not come into Wal-Mart the have interrogated workers, confiscated union literature, and fired union supported all in violation of the law.
Unfortunately as we have experienced in live situations not all CEO’s follow their ethical responsibility to their organization and society. CEO’s are back tracking there stock options to a point in the company’s fiscal year, and buying stock at a price when the stock was peaking. For example, former UnitedHealth Group CEO William McGuire received 14.6 million stock options on the same day that UnitedHealth Group’s shares fell to their lowest price for the
(TCO 9) Process management consists of which of the following? (Points : 6) 19. (TCO 10) During Final Inspection at a shirt manufacturer, more than 1,500 shirts were found with incorrect buttons. The manufacturer sold the shirts at 70 percent of the normal price to a retailer who specializes in factory seconds. The revenue lost by the manufacturer is considered which of the following?
Credit terms currently offered to its customers is “net 60”. He has analysed the payment pattern of the customers. If any account is not collected within 90 days after sales, that account is considered as not collectible and written off as bad debt loss. However, it is seen that all the customers pay within 90 days and the company has not written off any account as bad debt. The current aging schedule of accounts receivables is shown in Exhibit 4.
How does the situation change based on actual performance data provided in the Excel file on Blackboard? 3) What are the processing and delivery costs to fulfill average order at Peapod? (These are the key components in Peapod’s cost-to-serve. The question requires some detective work and estimation, given that all the data is not available) Conducting some secondary internet search, I found that the average basket size is over $157 and that customers typically shop twice a month. Reference: http://www.peapod.com/site/companyPages/our-company-info-for-students.jsp From table 13.3 of the case, the COGS accounts for 70% of the revenue of Peapod.
Pierre had regularly used payments, owed to Staab for trailer registration work, for her personal expenses and without depositing them in Staab's account or otherwise disclosing them to her accountants. The government pointed to diversion of such funds to 10 different St. Pierre accounts and the depositing or diversion of over 3,000 company checks without recording them as company income or paying personal taxes upon them. Records indicated unreported income of $1,248,327 for the three-year period; the taxes avoided by the failure to report this income amounted to over $500,000, apart from interest. The complexities of the tax code have led the Supreme Court to require for tax evasion a consciousness of wrongdoing. Cheek v. United States, 498 U.S. 192, 201 (1991) (“voluntary, intentional violation of a known legal duty”).