Answer: Please refer to Explanation.
Explanation:
1. Honesty.
State the purpose of your call to the secretary and sell your product. For instance, " Hello, my name is Mr. Petal and I represent a fast rising Paper and Metal Container company. After researching about your company, I felt it most expedient to get in touch with Mr. Firestone as I believe this is business he will be interested in. We offer perks that are unmatched in the industry".
2. Persistence.
You can be persistent on the phone if you detect deceit in the secretary's tone.
For instance,
" Having been in the chemical industry myself, I know such an opportunity does not come often and I really do guarantee that we give the best benefits in the industry. If you can, just let me talk to Mr. Firestone, I promise that neither of you will regret it".
If it still doesn't work, ask for a convenient time you can call back.
use a well labelled group to explain why the introduction of maximum prices in the petrol industry will not be an ideal decision for the country's economy??
Implementing maximum prices in the petrol industry may not be an ideal decision for the country's economy.
Consumer Group:
Implementing maximum prices may initially benefit consumers as it could lead to lower fuel costs. However, it can have negative consequences in the long run. With lower prices, there may be increased demand for petrol, leading to shortages and long queues at gas stations. Additionally, if prices are kept artificially low, it can discourage investment in the industry, hampering exploration, production, and infrastructure development. This could result in limited supply and dependence on imports, potentially leading to fuel shortages and price fluctuations.Business Group:
For businesses in the petrol industry, maximum prices can restrict their ability to cover costs and maintain profitability. Fuel companies have various expenses such as exploration, refining, distribution, and employee wages. If prices are capped, it can lead to reduced profit margins, making it challenging for companies to invest in new technologies, research, and development, which are crucial for improving fuel efficiency and reducing environmental impacts.Government Group:
From a government perspective, implementing maximum prices can have adverse effects on tax revenues. Taxes on fuel sales contribute significantly to government revenue. If prices are capped, tax income will decrease, impacting the government's ability to fund public services and infrastructure projects. It can also limit the government's ability to incentivize renewable energy sources and reduce environmental pollution.Considering these factors, the introduction of maximum prices in the petrol industry may have unintended consequences such as supply shortages, reduced investment, profitability challenges for businesses, and decreased tax revenue for the government. It is crucial to strike a balance between consumer affordability, industry sustainability, and government revenue to ensure a stable and efficient petrol market.
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What types of information do we disclose to others when forming a relationship? (site 1)
Answer:
self disclosure
Explanation:
NBM common stock recently paid annual dividend in the amount of $2.25 per share. The analyst’s estimate of the firm’s growth forecast over the next 4 years is 18.00% and over 3 years after that of 16.5%. You expect the firm to slow down in the long run and estimate the long-term growth rate after 7 years to be 6.5%. If the required rate of return on the stock is 11%, what is your estimate of the stock price?
Using the dividend discount model with given growth rates and required rate of return, the estimated stock price for NBM common stock is calculated by discounting future dividends, resulting in the stock price.
To estimate the stock price of NBM common stock, we can use the dividend discount model (DDM) which calculates the present value of future dividends.
First, let's calculate the dividends for the next 7 years:
Year 1: $2.25 (given)
Year 2: $2.25 * (1 + 18%) = $2.655
Year 3: $2.655 * (1 + 18%) = $3.1399
Year 4: $3.1399 * (1 + 18%) = $3.7029
Year 5: $3.7029 * (1 + 16.5%) = $4.3177
Year 6: $4.3177 * (1 + 16.5%) = $5.0273
Year 7: $5.0273 * (1 + 6.5%) = $5.3485
Next, let's calculate the present value of these dividends using the required rate of return of 11%:
PV = D1 / (1 + r) + D2 / (1 + r)^2 + ... + D7 / (1 + r)^7
PV = $2.25 / (1 + 0.11) + $2.655 / (1 + 0.11)^2 + $3.1399 / (1 + 0.11)^3 + $3.7029 / (1 + 0.11)^4 + $4.3177 / (1 + 0.11)^5 + $5.0273 / (1 + 0.11)^6 + $5.3485 / (1 + 0.11)^7
Finally, summing up the present values, we can estimate the stock price:
Stock Price = PV
Calculating this equation will give the estimated stock price of NBM common stock.
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What are some Drawbacks of business Debt?
Answer:Paying Back the Debt. Making payments to a bank or other lender can be stress-free if you have ample revenue flowing into your business. ...
High Interest Rates.
The Effect on Your Credit Rating.
Cash Flow Difficulties.
Explanation:
Beverly Mills has decided to lease a hybrid car to save on gasoline expenses and to do her part to help keep the environment clean. The car she selected is available from only one dealer in the local area, but that dealer has several leasing options to accom-modate a variety of driving patterns. All the leases are for 3 years and require no money at the time of signing the lease. The first option has a monthly cost of $330, a total mileage allowance of 36,000 miles (an average of 12,000 miles per year), and a cost of $0.35 per mile for any miles over 36,000. The following table summarizes each of the three lease
options:
(See photos below)
Beverly Mills has three leasing options to choose from. Each of these options differs in terms of the monthly cost, the total mileage allowance, and the cost for any miles over the set mileage allowance. Depending on her driving patterns, Beverly Mills can select the option that suits her the best.
Beverly Mills decided to lease a hybrid car to save on gasoline expenses and to do her part to help keep the environment clean. The car she selected is available from only one dealer in the local area, but that dealer has several leasing options to accommodate a variety of driving patterns.All the leases are for 3 years and require no money at the time of signing the lease.
The three lease options available to Beverly Mills are as follows:
Option 1:Monthly cost: $330Total mileage allowance: 36,000 miles (an average of 12,000 miles per year)Cost for any miles over 36,000: $0.35 per mile
Option 2:Monthly cost: $460Total mileage allowance: 45,000 miles (an average of 15,000 miles per year)Cost for any miles over 45,000: $0.45 per mile
Option 3:Monthly cost: $540Total mileage allowance: 60,000 miles (an average of 20,000 miles per year)Cost for any miles over 60,000: $0.55 per mile
Therefore, Beverly Mills has three leasing options to choose from. Each of these options differs in terms of the monthly cost, the total mileage allowance, and the cost for any miles over the set mileage allowance. Depending on her driving patterns, Beverly Mills can select the option that suits her the best.
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"Drag each label to the correct location on the image.
Match the features to the relevant inventory systems.
records purchase of inventory
in the purchase account records purchase of inventory
in the inventory account
inventory account is updated on inventory account is updated every purchase at the end of a time period
inventory is physically counted Perpetual Inventory System
Periodic Inventory System"
Each features should be matched to the relevant inventory systems as follows;
Perpetual Inventory System: records purchase of inventory in the inventory account.Periodic Inventory System: records purchase of inventory in the purchase account records.Perpetual Inventory System: inventory account is updated on every purchase.Periodic Inventory System: inventory account is updated at the end of a time period.Periodic Inventory System: inventory is physically counted.What is an inventory?An inventory can be defined as the raw materials or items that are used by a business firm (manufacturer or producer) for the manufacturing of finished goods, as well as goods that are in various stages to be made ready for sale to consumers.
What is a perpetual inventory system?In Economics, a perpetual inventory system is sometimes referred to as perpetual system of inventory and it can be defined as a method of financial accounting that typically involves updating information about an inventory on a continuous basis (in real-time) as the sales or purchases are being made by customers, especially through the use of enterprise management software applications and a digitized point-of-sale (POS) equipment.
Furthermore, an advantage of the perpetual inventory system (perpetual system of inventory) over the periodic system of inventory is that, it ensures the inventory account balance is always accurate provided there are no spoilage, theft, etc.
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the following balance where extracted from the book of Alfsal, a sole trader as at 31/12/2014 capital 198000 ,drawing 10700, building 300000, office equipment (cost le 22000) 15000, patent 24000, delivery van at cost63000, Accumulated depreciation delivery vans 14000, stock 01/01/2014 29000, sale485,000, purchase 196000, return outward 5300, return inward 17000, creditor 21900, debtor 34800, discount received 1400, wages and salaries 105,000, general expenses 13000,stationary 4800, tem loan(received on 01/04/2014) 50,000. vat 17300. provision for bad debts 2500. Advertising 5700. insurance 9,000. loan interest paid 1,000. bank42,600. PRSI/USU 10,200. profit and loss balance 01/01/2014 65,000. you are given the following aditional information: stock for resale at 31/12/2014 was le 19,000. stationary paid in advance was le 1,200. provision should be made for interest due on loan. the rate of interest is 6%per annum. wages and salaries are to be divided 75%for employees and drawings. building 10% of cost. delivery van 10% of net book value. office equipment 20% of cost. provision for bad debts is to be adjusted to 10% of debtors . you are required to prepare a trading and profit and loss account for the year ended 31/ 12/2014. balance sheet as at 31/12/2014.
Here is the trading and profit and loss account for the year ended 31/12/2014:
The Trading and Profit and Loss AccountFor the year ended 31/12/2014
Particulars Amount
Sales €485,000
Less: Cost of Goods Sold €196,000
Gross Profit €289,000
Less: Expenses
- Wages and Salaries (75%) €78,750
- General Expenses €13,000
- Stationary €4,800
- VAT €17,300
- Provision for Bad Debts €3,480
- Advertising €5,700
- Insurance €9,000
- Loan Interest €600
- PRSI/USU €10,200
Net Profit €157,370
Here is the balance sheet as at 31/12/2014:
Balance Sheet
As at 31/12/2014
Assets Liabilities
Cash €42,600
Bank €1,200
Debtors €34,800
Stock €19,000
Capital €213,570
Drawings €10,700
Building €300,000
Office Equipment €15,000
Patent €24,000
Delivery Vans €49,000
Accumulated Depreciation €28,000
Provision for Bad Debts €3,730
Loan €50,000
Profit and Loss €157,370
Total €618,570
Total €618,570
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PLEASE HURRY
1. What are the 3 parts of the Federal Reserve?
2. How many Board of Governors are there?
3. How many District/Reserve Banks are there?
4. Which Reserve Bank President always gets a vote with the FOMC (hint: which city)?
5. How many votes are there in the FOMC, the group that takes action on the nation's money supply?
6. What is the long term goal of the Federal Reserve (hint: discussed at the research department)
7. How do banks get money so that it can be lended out to businesses and consumers?
In 1989, the cpi was 124. 0. In 1990, it was 130. 7. What was the rate of inflation over this period?.
Inflation rate in Year 2
= CPI in Year 2 - CPI in Year 1 X 100
CPI in Year 1
= 5.4
If inflation remains extended for too long, it can lead to something economists call hyperinflation. That is when expectations that fees could keep growing fuel greater inflation, which reduces the actual fee of every dollar in your pocket.
Economists and economic professionals agree on one element: better fees will in all likelihood close nicely into the next 12 months if no longer. And means individuals will keep experiencing the ache of higher fees for the foreseeable destiny.
Inflation will harm folks who keep cash financial savings and workers with constant wages. Inflation will benefit people with massive money owed who, with growing prices, locate it less complicated to pay back their debts.
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a study of long-distance phone calls made from general electric reveled the length of the calls, in minutes, follows the normal probability distribution. the mean length of time per call was 4.5 minutes and the standard deviation was 0.70 minutes. what is the probability that calls last between 4.0 and 6.0 minutes?
The probability that calls last between 4.0 and 6.0 minutes is approximately 0.7441, or 74.41%.
To find the probability that calls last between 4.0 and 6.0 minutes, we need to calculate the area under the normal curve between these two values.
First, we need to standardize the values using the Z-score formula: Z = (X - μ) / σ, where X is the value, μ is the mean, and σ is the standard deviation.
For 4.0 minutes:
Z1 = (4.0 - 4.5) / 0.70 = -0.71
For 6.0 minutes:
Z2 = (6.0 - 4.5) / 0.70 = 2.14
Next, we need to find the cumulative probabilities associated with these Z-scores using a standard normal distribution table or a statistical software.
The probability associated with Z1 is P(Z ≤ -0.71), and the probability associated with Z2 is P(Z ≤ 2.14).
Using a standard normal distribution table, we can find these probabilities:
P(Z ≤ -0.71) ≈ 0.2389
P(Z ≤ 2.14) ≈ 0.9830
To find the probability that calls last between 4.0 and 6.0 minutes, we subtract the lower probability from the higher probability:
P(4.0 ≤ X ≤ 6.0) = P(Z ≤ 2.14) - P(Z ≤ -0.71)
≈ 0.9830 - 0.2389
≈ 0.7441
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how does marketing creates value
Marketing can help you add value by developing a brand, with messages and imagery that run through all of your marketing. A consistent brand will develop trust, and can in time represent everything your company stands for.
Do you think we should have to pay more or less taxes?
Who pays more taxes, the wealthy, middle-class, or those in poverty? Do they pay different types of taxes, or more taxes than others?
What are “Tax Loopholes” & who tends to benefit from them?
Paying tax is a relative thing .If government is utlizing the collected tax in proper ways and investing it in development arena,its good to pay the taxes because it ultimately will benifit us but paying more tax for government with weak development strategies and slow implementation that too with corruption its worthless of paying tax. 2. Middle class pays the hightest tax but the wealthy one pays low taxes because they wonderfully uses the tax loopholes inorder to pay less tax..Acutally paying less tax makes wealthy more wealthier but middle class who pay more tax cannot jump from middle class to high class because most of their income is deducted through tax
what types of jobs would you recommend companies utilize criminal background checks?
An employer may look into your employment history, credit, driving history, criminal history, vehicle registration, court records, compensation, bankruptcy, medical history, references, property ownership, drug test results, military background, and sex offender information.
Why do businesses conduct background checks?Employers can learn more about a candidate through background checks, which may help them: Increase productivity by selecting the best candidates. Take steps to avoid theft and other criminal activity. Avoid workplace safety hazards and harassment.Background checks are essential for big businesses, especially those that handle private customer and financial data. The safety and security of the business must be ensured that neither new nor current personnel pose a hazard. Background checks are crucial and worth the time and effort. The most typical background checks look for criminal activities, confirm job and education, include identification verification, and ask for driving records. Some employers also do drug testing, analyze credit reports, and look at social media.To learn more about businesses, refer to:
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describe two other criterias that are required in order to be considered for a bachelor's degree
Answer:
The two main criteria for consideration of bachelor's degree program,
Pre requisite subjects. This is a must to have requirement. ...
Merit based. This is also a must to pass requirement.
Explanation:
;)
Two prerequisites to get into a bachelors program are:
Have the requirementsPass the interviewWhat is a bachelors program?This is a program that is offered in the Universities that helps to equip secondary school leavers with degrees for chosen careers.
The reason why these are necessary is that it helps to establish if a person is the best fit for the school they chose.
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On average, our representatives enroll one customer every 3 hours, while top performers make one sale per hour. How would you plan your workweek to maximize your earnings?*
Plan your workweek to maximize your earnings Identify peak sales hours, Set ambitious goals, Allocate more time during high-performance hours, Continuous improvement, Efficient time management, Develop strong customer relationships, and Continuous learning.
To maximize earnings in this scenario, it is important to strategically plan the workweek and focus on increasing the number of customer enrollments. Here is a potential plan to maximize earnings:
1. Identify peak sales hours: Analyze the data and determine the hours or time slots when sales are most likely to occur. This could be based on historical data or observations of customer behavior. Allocate more time during these peak hours to capitalize on potential sales opportunities.
2. Set ambitious goals: Aim to achieve or exceed the performance of top performers by setting ambitious sales goals. This mindset will drive motivation and focus throughout the workweek.
3. Allocate more time during high-performance hours: Dedicate a larger portion of the workweek to the hours when top performers make one sale per hour. By increasing the number of hours during these periods, there is a higher likelihood of securing more customer enrollments.
4. Continuous improvement: Regularly analyze and reflect on sales techniques and strategies. Identify areas for improvement and seek ways to refine your approach. This could involve studying successful sales tactics, attending sales training sessions, or seeking feedback from experienced colleagues or mentors.
5. Efficient time management: Optimize time management skills to ensure productivity during working hours. Eliminate distractions, prioritize tasks, and maintain a focused and organized work environment. This will help maximize the number of customer interactions and increase the chances of securing enrollments.
6. Develop strong customer relationships: Emphasize building rapport and establishing strong connections with potential customers. Focus on active listening, understanding their needs, and providing personalized solutions. By developing trust and fostering positive relationships, the likelihood of successful enrollments can increase.
7. Continuous learning: Stay updated on industry trends, product knowledge, and competitor offerings. This will enable you to effectively address customer inquiries, overcome objections, and provide value-added insights during sales interactions.
By implementing these strategies, planning the workweek to prioritize peak sales hours, setting ambitious goals, improving sales techniques, and managing time efficiently, you can increase the likelihood of maximizing earnings by securing a higher number of customer enrollments.
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May 1: Prepaid rent for three months, $1,800 May 5: Received and paid electricity bill, $50 May 9: Received cash for meals served to customers, $340 May 14: Paid cash for kitchen equipment, $2,900 May 23: Served a banquet on account, $1,560 May 31: Made the adjusting entry for rent (from May 1). May 31: Accrued salary expense, $2,700 May 31: Recorded depreciation for May on kitchen equipment, $570 If Sweet Catering had recorded transactions using the Cash method, how much net income (loss) would they have recorded for the month of May? If there is a loss, enter it with parentheses or a negative sign.
If Sweet Catering had recorded transactions using the Cash method, the net income (loss) they would have recorded for May is ($4,410) instead of ($1,480) under the accrual method.
What is the difference between the cash method and the accrual method?The cash method records revenue and expenses when cash is received or payment is made.
On the other hand, the accrual method recognizes revenue and expenses for the period, whether cash is received/paid or not.
The accrual method records revenue when an invoice is raised and when a bill is received, unlike the cash method.
Transaction Analysis:May 1 Prepaid Rent $1,800 Cash $1,800
May 5 Electricity Expense $50 Cash $50
May 9 Cash $340 Service Revenue $340
May 14 Kitchen Equipment $2,900 Cash $2,900
May 23 Accounts Receivable $1,560 Service Revenue $1,560
May 31 Rent Expense $600 Prepaid Rent $600
May 31 Salary Expense $2,700 Salary Payable $2,700
May 31 Depreciation Expense $570 Accumulated Depreciation $570
Cash Method for Income Statement:Service revenue $340
Expenses:
Rent $1,800
Electricity 50
Kitchen equipment $2,900
Total cash expenses = $4,750
Net income (loss) = ($4,410)
Accrual Method for Income Statement:Service revenue $1,900
Expenses:
Rent $60
Electricity 50
Salary $2,700
Depreciation $570
Total expenses = $3,380
Net income (loss) = ($1,480)
For the purchase of kitchen equipment, the accrual method records depreciation expense for the month while the cash method records the full amount paid for kitchen equipment on May 14.
Thus, a higher net loss is recorded for May when Sweet Catering uses the Cash method than the Accrual method.
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The income statement can help a business do which of the following?
Explanation:
An income statement helps business owners decide whether they can generate profit by increasing revenues, by decreasing costs, or both. It also shows the effectiveness of the strategies that the business set at the beginning of a financial period
Which lender most likely offers the best options on a short-term loan?
a payday lender
b a mortgage lender
c a title lender
d a bank or credit union
Answer:
D a bank or credit union
Explanation:
Just took it
The lender most likely offers the best options on a short-term loan is a bank or credit union.
A short-term loan is a credit facility given to people or organisations to cover a cash shortage. Credit cards, bank overdrafts, trade credit, payday loans, etc. are some examples.
Depending on the form of debt, the loan tenure varies. While some loans have a term of 1-2 years, many have maturities of 6–12 months.
The interest rates, or annual percentage rates, are frequently set at high levels. Lenders try to make up for the lack of adequate earnings caused by short tenure by charging higher interest rates.
A short-term loan is a credit facility given to people or organisations to cover a cash shortage. Credit cards, bank overdrafts, trade credit, payday loans, etc. are some examples.
Depending on the form of debt, the loan tenure varies. While some loans have a term of 1-2 years, many have maturities of 6–12 months.
The interest rates, or annual percentage rates, are frequently set at high levels. Lenders try to make up for the lack of adequate earnings caused by short tenure by charging higher interest rates.
Since there is no tangible asset that may be sold to recoup the debt in the event of a default, most short-term loans are unsecured. As a result, applicants for loans with strong credit histories are prioritised.
Applicants with low credit scores frequently face considerable difficulty getting a short-term loan. They frequently receive loans with extremely high interest rates.
What is bank?A bank is a type of financial entity that lends money while both taking deposits from the general public and generating demand deposits. The bank may engage in lending activities directly or indirectly through the capital markets.
What is credit union?Since a credit union is truly organised as a cooperative, it is owned by its members. Members of credit unions are often those who have something in common, such as a profession, a place of residence, a religious affiliation, or membership in another group. Additionally, since they are nonprofits, credit unions are typically excluded from paying federal taxes. Some of them even get financial aid from the associations to which they are linked. As a result, credit unions are free from the pressure of turning a profit for shareholders.
The credit union's goal is to offer its members the most affordable terms for their financial goods. In comparison to bank customers, members typically receive lower lending rates, pay fewer (and lower) fees, and earn better APYs on savings products.
Supporting answer
Hence option D is correct answer
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You have Birr 1,500 to invest today at 7% interest compounded annually.Find how much you will have accumulated in the account at the end of (1) 3 years, (2) 6 years, and (3) 9 years.
The amount that would be accumulated at the end of 3 years is $1,837.56, in the end of 6 years is $2251.10 and the end of the year 9 years is $2757.69.
What is compound interest?Compound interest refers to the Interest on interest. It is interest calculated on the basis of the principal amount in which the interest rate is added every year. The interest rate is different is every year.
In the above case, the principle amount is $1500 which is compounded annually at the rate of 7%. For calculating future value following formula are as follows:-
Future value = P (1 + r)^n
Here P = principle
R = Rate
N = Time
Thus the accumulated amount for 3 years = 1500 x (1.07)^3
= $1,837.56
Thus the accumulated amount for 6 years = 1500 x (1.07)^6
= $2251.10
Thus the accumulated amount for 9 years = 1500 x (1.07)^3
= $2757.69
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While packing an item what size packaging material should be used
Answer:
box
Explanation:
because large box have a lot of space
identify each CSTO from its description
A broker found a ready, willing, and able buyer who offered full price for a home.
The seller refused to sell because the buyer was a minority. The broker could
legally do all except:
Sue for his commission.
Inform the prospective buyer that help may be available from HUD.
Inform the seller that a possible violation of Federal Fair Housing Laws has occurred.
Show the property only to non-minorities per the seller's instructions.
There are different reasons why people take decisions. The broker could
legally do all except Sue for his commission.
A seller may rejects an offer due to different reasons. Sellers often doo have several options when they are receiving a bid for their property. It is better to make a counteroffer with revisions when your offer is being rejected.
A seller is known too be able to counter and ask for changes to the fastesr money deposit, purchase price etc. In the above scenario, the Sue for his commission is not necessary in this case.
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Explain the major financial decisions to a layman
There are four major financial considerations to make. Capital budgeting or long-term investment decisions, capital structure or financing decisions, dividend decisions, and working capital management decisions are all examples of capital budgeting or long-term investment decisions.
Financial decisions are important in determining when, where, and how a corporation receives finances. When the market valuation of an organization's share increases, the firm tends to gain more profit; this is not only a symbol of the firm's progress but also increases the wealth of investors.
Financial decisions are those made by management about a company's finances. These are critical considerations for the company's financial well-being. These decisions can pertain to asset purchase, finance and fundraising, day-to-day capital and spending management, and so on.
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Which of the following best describes the sequences of events that lead to a price increase and quantity
decrease when supply decreases?
Answer:
you gave no options but according to me
Explanation:
When the demand for a product increases, businesses increase the price while decreasing the supply/quantity.
For this discussion, you should put yourself in the role of a moderator as you:
Unions are organizations that represent workers in a particular industry or profession. Their primary goal is to protect the rights and interests of workers by negotiating better wages, benefits, and working conditions.
What are the policies of the Union?Unions are organizations formed by workers to protect their interests and rights in the workplace. They advocate for collective bargaining, fair wages and benefits, workplace safety, non-discrimination, job security, training and education, and political advocacy.
What are the labor laws?Labor laws are laws that govern the relationship between employers and employees in the workplace. Examples include minimum wage laws, overtime laws, anti-discrimination laws, health and safety laws, leave laws, unionization laws, and employment contract laws. These laws govern the rights of employees to form and join unions and establish the legal requirements for collective bargaining.
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What are unions? What are their roles and policies?
QUESTION 1 of 10: Which is the best job-seeking resource?
O a) Newspaper
Ob) Cold calls
c) The web
d) None of the above
The web is the best job-seeking resource. Therefore option C is correct.
What is WEB?The World Wide Web, a portion of the Internet that consists of pages that can be accessed by a Web browser, is more commonly referred to as the "Web." The Web and the Internet are frequently used interchangeably because of this presumption.
The global server network that enables information sharing on the Web is actually referred to by the word "Internet." Therefore, even though a sizable amount of the Internet is made up of the Web, they are not the same thing.
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Juniper Design Limited of Manchester, England, is a company specializing in providing design services to residential developers. Last year the company had net operating income of $420,000 on sales of $1,500,000. The company’s average operating assets for the year were $1,700,000 and its minimum required rate of return was 15%.
Required:
Compute the company’s residual income for the year.
Answer: 165,000
Explanation:
To compute the company’s residual income for the year, we can use the formula:
Residual Income = Net Operating Income – (Minimum Required Rate of Return x Average Operating Assets)
Given: Net Operating Income = $420,000 sales = $1,500,000
Average Operating Assets = $1,700,000
Minimum Required Rate of Return = 15% = 0.15
Residual Income = Net Operating Income – (Minimum Required Rate of Return x Average Operating Assets)
Residual Income = $420,000 – (0.15 x $1,700,000)
Residual Income = $420,000 – $255,000
Residual Income = $165,000
Therefore, the company’s residual income for the year was $165,000.
Dave and his friend Stewart each owns 50 percent of KBS. During the year, Dave receives $75,000
compensation for services he performs for KBS during the year. He performed a significant amount of
work for the entity, and he was heavily involved in management decisions for the entity (he was not a
passive investor in KBS). After deducting Dave's compensation, KBS reports taxable income of
$30,000.
How much FICA and/or self-employment tax is Dave required to pay on his compensation and his
share of the KBS income if KBS is formed as a C corporation, an S corporation, or a limited liability
company (ignore the 0.9 percent additional Medicare tax)? (Do not round any percentage
calculations. Round other intermediate calculations and final answers to the nearest whole dollar
amount.)
C corporation
S corporation
Limited liability company
Answer: $12717
Explanation:
1. The amount of FICA and/or self-employment tax that Dave is required to pay on his compensation and his
share of the KBS income if KBS is formed as a C corporation, will be:
= 7.65% × $75000
= 7.65/100 × $75000
= 0.0765 × $75000
= $5738
2. As an S Corporation will be:
= 7.65% × $75000
= 7.65/100 × $75000
= 0.0765 × $75000
= $5738
3. As a limited liability company will be:
Dave's compensation = 75,000
Dave's portion of income will be calculated as:
= 50% × $30,000
= 0.5 × $30,000
= $15,000
Total will then be:
= $75000 + $15000 = $90000
We then calculate the net earnings which will be:
= 92.35% × $90000
= 0.9235 × $90000
= $83115
The FICA and/or self-employment tax that Dave is required to pay will then be:
= 15.3% × $83115
= 0.153 × $83115
= $12717
Timmy Tappan is single and had $204,000 in taxable income. Using the rates from Table
2.3 in the chapter, calculate his income taxes.
a. What is the average tax rate? (Do not round intermediate calculations and enter
your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
b. What is the marginal tax rate? (Do not round intermediate calculations and enter
your answer as a percent rounded to the nearest whole number, e.g., 32.)
Jimmy's Average Tax Liability is $26.96%. See the computation below.
What is the justification for the above result?Average Tax Liability = Total Tax Liability/Taxable Income.
= $41,495.50/$189,000
=21.96%
See the attached image.
What is the marginal tax rate?Marginal tax rate refers to the additional tax paid on the additional income.
Hence, Timmy's Marginal Tax rate on additional Income is 32%
See the attached image for more information.
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8
What are three advantages of corporations?
Answer:
Personal liability protection, business security and continuity