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iren2701 [21]
2 years ago
5

Compute net income for 2019 by comparing total equity amounts for these two years and using the following information: During 20

19, the owner invested $33,000 additional cash in the business (in exchange for common stock) and the company paid a $36,000 cash dividend.
Equity, December 31, 2018
Equity, December 31, 2019
The accounting records of Nettle Distribution show the following assets and liabilities as of December 31, 2018 and 2019.
December 31 2018 2019
Cash $55,530 $10,900
Accounts receivable 30,142 23,632
Office Supplies 4,755 3,483
Office equipment 145,958 155,473
Trucks 57, 115 66, 115
Building 0 190, 398
Land 0 47,511
Accounts payable 79,245 39,303
Note payable 0 137,909
Business
1 answer:
satela [25.4K]2 years ago
7 0

Answer:

net income during 2019 = $109,045

Explanation:

total stockholder equity 2018 = assets - liabilities = $293,500 - $79,245 = $214,255

total stockholder equity 2019 = assets - liabilities = $497,512 - $177,212 = $320,300

change in equity from 2018 to 2019 = $106,045

$33,000 can be explained by additional capital invested, and the remaining  $73,045 corresponds to change in retained earnings

change in retained earnings = net income - dividends distributed

$73,045 = net income - $36,000

net income = $109,045

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Helen, who is single, is considering purchasing a residence that will provide an $18,000 tax deduction for property taxes and mo
GenaCL600 [577]

Answer:

amount of tax saving is $4320

Explanation:

given data

tax deduction = $18000

marginal tax rate = 24%

effective tax rate = 20%

to find out

amount of tax saving

solution

we know tax saving formula that is

tax saving = tax deduction × marginal tax  ........................1

so now put here all value in equation 1

tax saving = tax deduction × marginal tax

tax saving = 18000 × 24%

tax saving = 18000 × 0.24

tax saving = 4320

so amount of tax saving is $4320

4 0
2 years ago
Greta has a good credit rating and is considering taking out a car loan. Which of the following questions will help her make the
Roman55 [17]

Great would need to ask the following questions

Are variable expenses unpredictable?

Is her quality of life already under pressure from current payment plans?

Are current fixed expenses a financial burden?

If Greta can reasonable predict her variable expenses and know that her current income is enough to handle fluctuations, then should can proceed with the purchase.

6 0
2 years ago
When a soft drink company introduced a new peach-flavored drink in a market saturated with colas, it immediately found favor wit
Elena L [17]

Answer:

positioning strategy.

Explanation:

According to my research on different types of business strategies, I can say that based on the information provided within the question the soft drink company is effectively using a positioning strategy. This is a strategy that focuses on one or two important key aspects in which to concentrate and excel on. In this situation the key aspect was healthy living.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

7 0
2 years ago
Columbia Gas Company’s (CG) current capital structure is 35% debt and 65% equity. This year CG has earnings after tax of $5.31 m
Reil [10]

Answer:

Current dividend per share paid (Do)

= <u>Total dividend </u>

  No of shares outstanding

= <u>$1,600,000</u>

   1,000,000 shares

= $1.60 per share

Current market price = $31

Growth rate = 8%  = 0.08

Ke = Do<u>(1 + g)</u>  + g

               Po

Ke = $1.60<u>(1 + 0.08)</u> + 0.08

                     $31

Ke = 0.1357 = 13.57%

Interest rate on borrowing (Kd) = 10%

Tax rate (T) = 40% = 0.40

WACC = Ke(E/V) + Kd(D/V)(1-T)

WACC = 13.57(65/100) + 10(35/100)(1 - 0.4)

WACC = 8.82 + 2.10

WACC = 10.9%

The correct answer is A

Explanation:

In this case, we need to calculate cost of equity. The cost of debt has been given, which is the interest rate on long-term borrowing (10%). Since the debt proportion in the capital structure is 35% and equity proportion is 65%, it implies that the value of the firm is 100%.  Then, WACC is the aggregate of cost of each stock and the proportion of each stock in the capital structure.

6 0
2 years ago
You are designing a process for the assembly of a consumer electronics product with a labor content of nine minutes. You are try
mr Goodwill [35]

Answer:

a. The single line

Explanation:

Since in the question it is mentioned that a process is designed of nine minutes in which the decision is taken for using a single machine with eight workers or eight separate individual worker cell should be used. Also the eight individual operator sells performs the same assembly task

Based on the above information,

The single line would generated the high output there is a high chance of variability that results in generating less output as compared with the single line

6 0
2 years ago
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