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2 years ago

Sabina makes $2,000 per month. She spends $300 on credit card payments and $450 on an auto loan. Does she have excessive debt?

1 answer:

4 0

She does not have an excessive debt because of her debt-to-income ratio lower than 42 percent. 42% is a limit of good average debt to income ratio and Sabina's debt to income ratio has not yet exceeded that limit. The debt to income ratio can be calculated by<span> dividing her total debt by her total income which results in 37.5% (($300+$450)/$2000 = 37.5%).</span>

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Patty Corporation holds 75 percent of Slider Corporation's voting common stock, acquired at book value. The fair value of the no

Marina86 [1]

Answer:

1) d. $175,000

2) b. $156,250

Explanation:

1. The computation of net income for 20X9 under the treasury stock method is shown below:-

Net income for 20X9 under the treasury stock method = Janet Operating income + Slider operating income

= $100,000 + $75,000

= $175,000

2. The computation of income assigned to the controlling interest for 20X9 is shown below:-

income assigned to the controlling interest for 20X9 = Janet Operating income + (Slider operating income × Remaining percentage)

= $100,000 + ($75,000 × 75%)

= $100,000 + $56,250

= $156,250

Therefore we have applied the above formulas.

5 0

2 years ago

Zen Manufacturing Company is considering replacing a four-year-old machine with a new, advanced model. The old machine was purch

dedylja [7]

Answer:

$4,800

Explanation:

The computation of additional annual cash inflow is shown below:-

Saving in Annual Maintenance Cost by new machine = $15,000 - $6,000

= $9,000

Net savings on Maintenance = $9,000 × (1 - 0.4)

= $5,400

Decrease in Depreciation due to purchase of New machinery

= ($60,000 ÷ 10) - ($45,000 - 10)

= $6,000 - $4,500

= $1500

Tax to be paid due to decrease in Depreciation = Decrease in Depreciation due to purchase of New machinery × Tax rate

= $1,500 × 0.4

= $600

Net Annual cash Inflow due to new machinery = Net savings on Maintenance - Tax to be paid due to decrease in Depreciation

= $5,400 - $600

= $4,800

So, for computing the additional annual cash inflow we simply applied the above formula.

4 0

2 years ago

A company had beginning inventory of 5 units that cost $10 each. During the month, 15 units were purchased for $11 each. The com

zysi [14]

Answer:

True

Explanation:

Using FIFO,

Under First in First out method, items that were purchased first will be availed for sale first. In this case, the opening stock of 5 at $10 items will be sold first. An additional 7 units will be required from the next batch of purchases at $11.

The costs of the first 12 units will be

=(5 x 10)+ (7 x 11)

=50 +77

=$127

With LIFO, the items acquired last will be sold first. In this case, the 12 items sold will come the batch of 15 purchased at $11 in the months

Using LIFO, the cost of goods available for sale.

=12 X $11

=132

The difference is the costs of goods available for sale is $ 5, with FIFO having a lower cost. It means FIFO profits will be $5 more.

3 0

2 years ago

Mr. Crane is the manager of a video production company. To maximize efficiency, he assigns associates to departments (e.g. film

frez [133]

Answer:

Mr. Crane must first draw the interests and abilities of the companions. Some of them might be logically very good and obsessive in some parts (film division, editing division, sound division, etc.) but they might be assign to some other division. This will enhance in their low level of satisfaction and motivation. This will also assist Mr. Crane in conveying the divisions as per comforts of the associate as possible.

Explanation:

Mr. Crane must achieve an unidentified Response Survey between staffs so that their disquiets and problems can be carried out. Some individuals might not give this response openly.

Mr. Crane must also look at some of the work structures which are very serious for employee’s job satisfaction:

Operational time (Are Associates working long hours?)
Pay and compensation (Are they paid less than market rates?)
Training and learning opportunities
Traditional and sport actions to keep staffs involved
Inspiration from leaders

Mr. Crane must find out the points through above methods and effort to discourse them so that staffs feel pleased and motivated. He can also initiate Rewards & Recognition program to escalate good workers. This will also improve their motivation.

8 0

2 years ago

Adrianna works as a purchasing manager at a trading firm and earns a salary of $60,000. She has deductions of $3,000 and tax cre

Musya8 [376]

Adrianna's salary $60,000

She has deductions of $3,000

Tax credits of $5,000

Annual tax of $6,000

What is her annual disposable income?

To solve, subtract all the deductions or money leaving her salary and add the credits she receives yearly.

$60,000 - $3,000 = $67,000

$57,000 + $5,000 = $62,000

$62,000 - $6,000 = $56,000

Adrianna's annual disposable income is $56,000.

6 0

2 years ago