Since Amber would like to interview an accountant that she is not familiar with to gain more information about what it is like working as one, it is better for her to send a letter that includes (D) a list of questions that she intends to ask in her interview.
This way, the accountant can know whether she or he can answer the questions that Amber wants the answers too and prepare any necessary information beforehand.
Answer:
$420,000 deferred tax asset
Explanation:
Deferred-tax assets are asset that occurred when company's or organization record income tax is less than the one which is been paid to the tax authority.
Taxable income 3,200,000
Less;Income (per books before income taxes) $2,000,000
Total $1,200,000
Therefore
$1,200,000×35%
=$420,000 deferred tax asset.
Cross record should record $420,000 as a net deferred tax asset or liability for the year ended December 31, 2018
Answer:
d) Equity would increase by $63,228
Explanation:
We are not given any information about stock prices, but we do not need them. Whenever new common stocks are issued, stockholders' equity will increase (always).
Retained earnings are affected by net income and dividends:
- net income increases retained earnings
- dividends decrease retained earnings
Answer:
$52,991
Explanation:
The computation of the cash flow from assets is shown below:
As we know that
Cash flow from assets = cash flow to shareholders + cash flow to creditors
where,
cash flow to shareholders
= Dividend paid - new equity issued
= $27,950 - $25,250
= $2,700
And, the cash flow to creditors is
Cash flow to creditors = Interest paid - closing balance of long term debt + beginning balance of long term debt
= $28,941 - 0 + $21,350
= $50,291
So, the cash flow form assets is
Cash flow from assets = cash flow to shareholders + cash flow to creditors
= $2,700 + $50,291
= $52,991
