This proforma cash budget shows that your ice cream shop will generate a positive cash flow of $4,000 per month, which should be enough to cover your monthly expenses and allow you to build up some cash reserves.
First, let's estimate your monthly sales revenue. Based on your menu, we can estimate that your average sale price will be around $5. We'll assume that you can serve 60 customers per day on average, with an average of 1.5 items per customer. This gives us a monthly sales revenue of:
Monthly sales revenue = Average sale price x Customers per day x Items per customer x Days per month
Monthly sales revenue = $5 x 60 x 1.5 x 30 = $13,500
Now let's estimate your monthly expenses. We'll assume the following expenses:
Rent: $2,000 per month
Utilities: $500 per month
Ingredients and supplies: $3,000 per month
Labor: $4,000 per month (you'll need at least 2 employees working at minimum wage of $15 per hour, 8 hours per day, 7 days a week)
Monthly expenses = Rent + Utilities + Ingredients and supplies + Labor
Monthly expenses = $2,000 + $500 + $3,000 + $4,000 = $9,500
Now let's calculate your monthly cash flow. We'll assume that you'll need to purchase ingredients and supplies at the beginning of each month, and that you'll receive payment from customers at the time of purchase. We'll also assume that you'll need to pay your rent and utilities at the beginning of each month.
Monthly cash flow = Monthly sales revenue - Monthly expenses
Monthly cash flow = $13,500 - $9,500 = $4,000
We'll use this monthly cash flow to create a proforma cash budget for your first year of operations. Here is the monthly cash budget for your ice cream shop:
Month Sales Revenue Expenses Cash Flow
Aug $13,500 $9,500 $4,000
Sep $13,500 $9,500 $4,000
Oct $13,500 $9,500 $4,000
Nov $13,500 $9,500 $4,000
Dec $13,500 $9,500 $4,000
Jan $13,500 $9,500 $4,000
Feb $13,500 $9,500 $4,000
Mar $13,500 $9,500 $4,000
Apr $13,500 $9,500 $4,000
May $13,500 $9,500 $4,000
Jun $13,500 $9,500 $4,000
Jul $13,500 $9,500 $4,000
This proforma cash budget shows that your ice cream shop will generate a positive cash flow of $4,000 per month, which should be enough to cover your monthly expenses and allow you to build up some cash reserves.
To know more about business here
https://brainly.com/question/24553900
#SPJ4
explain the importance of entrepreneurship in the US economy. Clearlycommunicate the benefits and the drawbacks of entrepreneurship in the United States.
Entrepreneurship plays a crucial role in the US economy by driving innovation, creating new jobs, and fueling economic growth. Entrepreneurs are individuals who identify opportunities, take risks, and start new businesses.
They bring new products and services to market, disrupt existing industries, and create new ones. The importance of entrepreneurship in the US economy can be seen through the following benefits. New businesses create jobs, and entrepreneurs are responsible for most of the new job growth in the US. According to the Small Business Administration (SBA), small businesses created 1.5 million net new jobs in 2019, and they account for about half of all private-sector jobs in the US. Entrepreneurs drive economic growth by introducing new products and services, improving productivity, and fostering competition. They also attract investment and create wealth, which can then be reinvested in the economy. Entrepreneurs are often driven by a desire to solve problems and create something new. They introduce new technologies, processes, and business models that can transform industries and drive progress. Entrepreneurs are often more nimble and adaptable than larger corporations, which allows them to respond quickly to changes in the market and innovate more effectively.
However, there are also some drawbacks to entrepreneurship in the United States. These include Entrepreneurship involves taking risks, and not all ventures are successful. Entrepreneurs often invest their own money, time, and resources into their ventures, which can lead to financial ruin if the business fails. Entrepreneurs face stiff competition from established companies, as well as other startups. It can be difficult to stand out in a crowded market and gain traction. Starting a business can be a complex and time-consuming process, particularly when it comes to complying with regulations and obtaining licenses and permits. While successful entrepreneurs can create significant wealth, not all entrepreneurs succeed. Income inequality can widen as a result, with successful entrepreneurs earning significantly more than those who are less successful.
For more questions like visit the link below:
https://brainly.com/question/30999912
#SPJ11
Consumers have to make tradeoffs in deciding what to consume because.
Consumers have to make tradeoffs in deciding what to consume because of the scarcity of resources relative to the unlimited wants and needs that people have.
Consumers have limited income, time, and other resources, so they must prioritize their spending and make choices about what goods and services to consume based on their preferences and available resources.
These tradeoffs are necessary because consumers cannot have everything they want, and every decision to consume one good or service means giving up the opportunity to consume something else. For example, choosing to spend money on a luxury item like a fancy dinner or a new designer outfit means sacrificing the opportunity to save or spend on other goods or services.
To know more about tradeoffs click here
brainly.com/question/26477884
#SPJ11
the first step in developing an abc system is question content area bottom part 1 a. identify the primary activities and estimate a total cost pool for each. b. select an allocation base for each activity. c. calculate an activity cost allocation rate for each activity. d. allocate the costs to the cost object using the activity cost allocation rates
The first step in developing an ABC system is identify the primary activities and estimate a total cost pool for each. So the option A is correct.
An Activity-Based Costing (ABC) system is a method of assigning costs to activities and products based on the resources used. The primary activities should be identified first as these activities are the ones that consume the most resources and will have the greatest impact on the total cost pool.
After identifying the primary activities, it is important to estimate the total cost pool for each activity. This involves identifying the cost elements associated with each activity, such as labor, materials, overhead, etc., and assigning a cost to each.
This will then provide a total cost pool for each activity, which can be used to accurately allocate costs to products and services. By understanding the costs associated with each activity, it is possible to identify areas that are inefficient or need improvement to reduce costs. So the option A is correct.
To learn more about Activity-Based Costing link is here
brainly.com/question/29310410
#SPJ4
- Differentiate a need from a want.- Differentiate a high involvement product from a lowinvolvement product.
To differentiate a need from a want, it is essential to understand the basic definitions of these two terms. A need refers to something that is essential for a person's survival or well-being, such as food, water, shelter, and clothing. A want, on the other hand, is something that a person desires or wishes to have but is not necessary for survival or well-being, such as a luxury car, designer clothes, or the latest smartphone.
To differentiate a high involvement product from a low involvement product, you should first know their characteristics.
A high involvement product is something that requires a significant amount of thought, research, and financial investment before making a purchase decision. These products are typically expensive, have a long-term impact on the consumer's life, and carry higher risks if the purchase decision turns out to be unsatisfactory. Examples include cars, houses, and major appliances. A low involvement product is something that requires little thought, research, or financial investment before making a purchase decision. These products are usually inexpensive, have a short-term impact on the consumer's life, and carry minimal risks if the purchase decision turns out to be unsatisfactory. Examples include snacks, toiletries, and household cleaning products.Learn more about Involvement product: https://brainly.com/question/30564220
#SPJ11
Lubbock healthcare's controller has calculated that this for-profit company must pay state and federal income taxes this year at a rate of 20 percent. depreciation on equipment purchased for the emergency department will amount to $20,000 this year. income tax savings for the current year on this equipment will therefore amount to:
Lubbock Healthcare's income tax savings for the current year on the depreciation of equipment purchased for the emergency department will therefore amount to $4,000.
The income tax savings on the depreciation of equipment for Lubbock Healthcare can be calculated using the formula:
Tax savings = Depreciation expense x Tax rate
In this case, the depreciation expense is $20,000 and the tax rate is 20%.
Tax savings = $20,000 x 0.20
Tax savings = $4,000
Therefore, Lubbock Healthcare's income tax savings for the current year on the depreciation of equipment purchased for the emergency department will be $4,000.
Depreciation is considered a non-cash expense because it represents the reduction in the value of an asset over time due to wear and tear, obsolescence or other factors. It is therefore deductible for tax purposes, which reduces the taxable income and the amount of income tax payable.
In conclusion, businesses can use depreciation to reduce their taxable income and consequently lower their income tax bill. By taking advantage of depreciation and other tax-saving strategies, companies can effectively manage their tax liabilities and maximize their profits.
To know more about tax savings refer here:
https://brainly.com/question/14756138#
#SPJ11
Kate is a salesperson at a large retail chain. She was assigned a goal of $265,000 in sales for the current quarter. She is unhappy because she knows that the most any salesperson has sold in one quarter in the past is $150,000. Her goal of $265,000 is probably
A)not specific and measurable.
B)not realistic.
C)irrelevant.
D)lacking a specific time period.
E)does not cover key result area
The correct answer to this question is B: not realistic.
A goal needs to be specific, measurable, achievable, relevant, and time-bound in order to be effective. While Kate's goal of $265,000 is specific and measurable, it is not achievable or realistic based on the past performance of the sales team.
As a salesperson, it is important to have goals that are challenging yet attainable. Setting unrealistic goals can lead to feelings of frustration and failure, which can ultimately hinder performance. A more effective approach would be to break down the overall goal into smaller, achievable targets that can be tracked and celebrated along the way.
Sales managers have a responsibility to set goals that motivate and challenge their team, but it is equally important to provide the necessary resources and support to achieve those goals. By working together and focusing on realistic targets, sales teams can build confidence and momentum towards achieving even greater success in the future.
To learn more about goal:
https://brainly.com/question/21032773
#SPJ11
The increase in quality bias in the consumer price index refers to the idea that price increases in the cpi reflect pure inflation, but ________ quality increases. this causes the cpi to ________ the cost of the market basket.
The increase in quality bias in the consumer price index (CPI) refers to the idea that price increases in the CPI reflect pure inflation, but not quality increases.This causes the CPI to overstate the cost of the market basket.
In other words, if the quality of a product increases over time, it may justify a higher price. However, the CPI does not adjust for this improvement in quality and treats the higher price as inflation.
This bias is particularly relevant for products that experience rapid technological advancements and improvements in quality. As a result, the CPI may overstate inflation, leading to incorrect policy decisions by the government and private sector, such as the setting of interest rates and wage adjustments.
To know more about consumer price index refer to-
https://brainly.com/question/4513076
#SPJ11
kinnane's fine furniture manufactures two models: standard and premium. weekly demand is estimated to be 100 units of the standard model and 72 units of the premium model. the following per unit data apply: kinnane's fine furniture data standard premium contribution margin per unit $24 $30 number of machine hours required 3 5 if there are 495 machine hours available per week, how many rockers of each model should kinnane produce to maximize profits?
Kinnane's should produce 100 units of the standard model and 72 units of the premium model to maximize profits.
To maximize profits, Kinnane's Fine Furniture should produce the models that provide the highest contribution margin per machine hour.
Let's calculate the contribution margin per machine hour for each model;
Standard model: $24 / 3 hours = $8 per machine hour
Premium model: $30 / 5 hours = $6 per machine hour
Therefore, the standard model provides a higher contribution margin per machine hour than the premium model.
To determine the optimal production quantity for each model, we can use the following steps;
Determine the maximum number of standard models that can be produced given the machine hours available: 495 machine hours / 3 hours per standard model = 165 standard models
Determine the maximum number of premium models that can be produced given the machine hours available: 495 machine hours / 5 hours per premium model = 99 premium models
Since the demand for the standard model is 100 units and the maximum production capacity is 165 units, Kinnane's should produce 100 units of the standard model.
Since the demand for the premium model is 72 units and the maximum production capacity is 99 units, Kinnane's should produce 72 units of the premium model.
Therefore, Kinnane's will produce 100 units of tandard model and 72 units of the premium model.
To know more about contribution margin here
https://brainly.com/question/17204241
#SPJ4
San antonio independent school district v. rodriguez (1973) in 1968, members of the edgewood concerned parent association filed a lawsuit in a texas district court challenging that the system of using property taxes as the main source of revenue for school districts discriminated against poorer school districts. they provided evidence showing that wealthier schools serving primarily white students spent more money per pupil than poorer schools, especially those with minority populations. without a wealthy tax base to fund their schools, they argued that poorer students’ fourteenth amendment rights were being violated.the case was brought before the supreme court in san antonio independent school district v. rodriguez (1973). in a 5-4 decision, which was divided along ideological lines, the supreme court ruled that the students’ constitutional rights were not violated by the texas school funding plan. in writing the majority opinion, justice powell stated that "the texas plan is not the result of hurried, ill-conceived legislation. it certainly is not the product of purposeful discrimination against any group or class. on the contrary, it is rooted in decades of experience in texas and elsewhere, and, in major part, is the product of responsible studies by qualified people."
question a. identify the clause of the fourteenth amendment that is common to both brown v. board of education of topeka (1954) and san antonio independent school district v. rodriguez (1973).
b. explain how the difference in facts led to a different decision in both brown v. board of education of topeka and san antonio independent school district v. rodriguez.
c. explain how the outcome in san antonio independent school district v. rodriguez demonstrates how public policy regarding equality of opportunity is affected by federalism in the united states.
The clause of the Fourteenth Amendment is the equal protection clause. In Brown v. Board of Education of Topeka (1954), the issue was whether the segregation of public schools was based on race. San Antonio Independent School District v. Rodriguez case outcome is regarding equal opportunity being affected by federalism.
a. The clause of the fourteenth amendment that is common to both Brown v. Board of Education of Topeka (1954) and San Antonio Independent School District v. Rodriguez (1973) is the equal protection clause.
b. In Brown v. Board of Education of Topeka, the issue was the segregation of schools based on race, which the Supreme Court ruled was unconstitutional and a violation of the equal protection clause. In San Antonio Independent School District v. Rodriguez, the issue was the funding of schools based on property taxes, which the Supreme Court ruled did not violate the equal protection clause as it was not a purposeful discrimination against any group or class.
c. The outcome in San Antonio Independent School District v. Rodriguez demonstrates how public policy regarding equality of opportunity is affected by federalism in the United States because it allows states to have control over their own educational systems and funding, which can lead to disparities in resources and opportunities for students in different areas. The Supreme Court's decision, in this case, upheld the state's right to determine its own funding system, even if it resulted in unequal educational opportunities for students. This highlights the challenge of balancing state autonomy with the federal government's responsibility to ensure equal protection and opportunity for all citizens.
Learn more about Educational systems: https://brainly.com/question/8461796
#SPJ11
rustic company manufactures chocolate bars. the following were among rustic's manufacturing costs during the current year: wages machine operators $ 300,000 selling and administrative personnel $ 75,000 materials used lubricant for oiling machinery $ 25,000 cocoa, sugar, and other raw materials $ 225,000 packaging materials $ 190,000 rustic's direct materials amounted to:
Based on the information provided, Rustic Company's direct materials cost can be calculated by summing the costs of cocoa, sugar, and other raw materials, and packaging materials.
Direct materials cost = Cost of cocoa, sugar, and other raw materials + Cost of packaging materials
Direct materials cost = $225,000 + $190,000
Direct materials cost = $415,000
Therefore, Rustic Company's direct materials cost for the current year is $415,000.
In manufacturing, there are typically two types of costs associated with producing goods: direct costs and indirect costs.
Direct costs are costs that can be directly traced to the production of a specific product. In the case of Rustic Company, the direct materials used in the manufacturing of chocolate bars would include cocoa, sugar, and other raw materials, as well as packaging materials. These are the materials that are directly used in the production process and are incorporated into the final product.
Learn more about “ Direct costs “ visit here;
https://brainly.com/question/30300511
#SPJ4
which of the following statements is true? question 13 options: 1) all people who experience manic symptoms will experience symptoms of depression at some point during their lifetime. 2) an episode of depression is required for the diagnosis of bipolar i. 3) an episode of depression is required for the diagnosis of bipolar ii. 4) researchers often study triggers of manic and depressive episodes simultaneously.
Bipolar disorder is a mental health condition characterized by episodes of mania or hypomania (less severe than mania) and depression. There are several types of bipolar disorder, including bipolar I and bipolar II.
The correct answer is: 2) an episode of depression is required for the diagnosis of bipolar I. To be diagnosed with bipolar disorder, a person must have experienced at least one manic episode in their lifetime. A manic episode is defined as a period of abnormally elevated, expansive, or irritable mood lasting for at least one week (or less if hospitalization is necessary) and accompanied by other symptoms such as decreased need for sleep, increased talkativeness, racing thoughts, and reckless behavior.
While an episode of depression is not required for the diagnosis of bipolar I disorder, it is common for people with bipolar I to experience episodes of depression as well. In contrast, for the diagnosis of bipolar II disorder, a person must have experienced at least one hypomanic episode and one major depressive episode.
To learn more about bipolar disorder, visit here
https://brainly.com/question/14293131
#SPJ4
Coca Cola is a well-established product sold. Identify its key attributes. How could the brand be leveraged? Can you suggest any brand extensions that could be developed? What about licensing? Just how far could you go with the development?
The key attributes of Coca-Cola include its distinct taste, strong brand recognition, and worldwide distribution, and the brand can be leveraged through strategic partnerships, innovative marketing campaigns, and by expanding its product portfolio.
Possible brand extensions include healthy beverage options, Coca-Cola branded snacks, and non-alcoholic beverage mixes. Licensing opportunities can include Coca-Cola themed merchandise, collaborations with other brands, and the use of the brand in entertainment media. The development potential of Coca-Cola is vast, as long as it remains consistent with the brand's core values and maintains customer trust. Overall, Coca-Cola has the potential for significant growth and development with the right marketing strategies and product offerings.
Learn more about key attributes: https://brainly.com/question/1997724
#SPJ11
You are considering two different methods for constructing a new warehouse site. The first method would use prefabricated building segments, would have an initial cost of $6. 5 million, would have annual maintenance costs of $150,000, and would last for 25 years. The second alternative would employ a new carbon-fibre panel technology, would have an initial cost of $8. 2 million, would have maintenance costs of $650,000 every 10 years, and is expected to last 40 years. Both buildings would be in CCA Class 1 (at a rate of 4 percent) and it is expected that each would have a salvage value equivalent to 25 percent of its construction cost at the end of its useful life. The discount rate the firm uses in evaluating projects is 11 percent. The tax rate is 35 percent. What is the annual cost for each option, and which would you pick?
The question asks for the annual cost of each warehouse construction option and a recommendation on which to choose.
Option 1 (prefabricated building segments):
1. Initial cost: $6.5 million
2. Annual maintenance cost: $150,000
3. Useful life: 25 years
4. Salvage value: 25% of initial cost
5. CCA rate: 4%
6. Discount rate: 11%
7. Tax rate: 35%
Option 2 (carbon-fibre panel technology):
1. Initial cost: $8.2 million
2. Maintenance cost: $650,000 every 10 years
3. Useful life: 40 years
4. Salvage value: 25% of initial cost
5. CCA rate: 4%
6. Discount rate: 11%
7. Tax rate: 35%
To calculate the annual cost, first determine the net present value (NPV) of each option, taking into account the initial cost, maintenance costs, depreciation (CCA), tax savings, and salvage value.
Then, use the annuity formula to convert the NPV to an annual cost: Annual Cost = NPV × (Discount Rate ÷ (1 - (1 + Discount Rate)^(-Useful Life)))
After calculating the annual costs for both options, compare them and choose the one with the lower annual cost. This will be the most cost-effective choice for constructing the new warehouse site.
To know more about warehouse refer here:
https://brainly.com/question/31416927#
#SPJ11
Wings Co. Budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and had the following manufacturing overhead:
Overhead Cost Pool Budgeted Overhead Cost Budgeted Level for Cost Driver Overhead Cost Driver
Materials handling $160,000 3,200 pounds Weight of materials
Machine setup 13,200 390 setups Number of setups
Machine repair 1,380 30,000 machine hours Machine hours
Inspections 10,560 160 inspections Number of inspections
Requirements for Job #971 which manufactured 4 units of product:
Direct labor 20 hours
Direct materials 130 pounds
Machine setup 30 setups
Machine hours 15,000 machine hours
Inspections 15 inspections
If Wings uses a volume-based overhead rate based on direct labor hours, the manufacturing overhead for Job #971 is:
a. $1,020.
b. $990.
c. $6,400.
d. $3,460.
e. $1,600.
Can you explain what volume based costing is? Is it another name for traditional costing? What are formulas I need to know for ABC and Volume based costing?
Volume-based costing, also known as traditional costing, is a costing method that assigns indirect costs to products based on a single volume-based cost driver, such as direct labor hours, machine hours, or direct material costs. It assumes that the volume-based cost driver is the main cause of the indirect costs incurred in production. The formula for volume-based overhead rate is:
Volume-based overhead rate = Total estimated manufacturing overhead cost ÷ Total estimated volume-based cost driver
On the other hand, activity-based costing (ABC) is a costing method that assigns indirect costs to products based on multiple cost drivers that represent the activities required to produce the products. It recognizes that different activities consume different resources and cost drivers, and thus, more accurately reflects the true costs of production. The formula for ABC overhead rate is:
ABC overhead rate = Total estimated cost of each activity ÷ Total estimated cost driver of each activity
To calculate the overhead cost for a specific job using volume-based costing, you need to first calculate the overhead rate using the total estimated manufacturing overhead cost and the total estimated volume-based cost driver. Then, you multiply the overhead rate by the actual volume-based cost driver for the specific job. In this case, the volume-based cost driver is direct labor hours. The formula is:
Overhead cost for a job = Volume-based overhead rate x Actual direct labor hours for the job
Using the data provided, the volume-based overhead rate is calculated as follows:
Total estimated manufacturing overhead cost = $160,000 + $13,200 + $1,380 + $10,560 = $185,140
Total estimated direct labor hours = 2,315
Volume-based overhead rate = $185,140 ÷ 2,315 = $79.96 per direct labor hour
To calculate the manufacturing overhead for Job #971, you multiply the actual direct labor hours for the job (20) by the overhead rate:
Manufacturing overhead for Job #971 = $79.96 per direct labor hour x 20 direct labor hours = $1,599.20
Therefore, the closest answer to the manufacturing overhead for Job #971 using volume-based costing is option e, $1,600.
To know more about traditional costing , refer here :
https://brainly.com/question/15742146#
#SPJ11
borealis computing is a small start-up firm that needs to purchase essential equipment and supplies to begin operations. gencent llc, a larger firm, offers to finance borealis computing's purchases. under their agreement, borealis computing will repay gencent llc overtime at a specified interest rate. in the context of nonequity funding, gencent llc's financing of borealis computing's purchases is an example of .
In the context of non-equity funding, Gencent LLC's financing of Borealis Computing's purchases is an example of supplier credit.
Early-stage startups and businesses that lack the assets or track record necessary to obtain standard bank loans frequently employ non-equity funding. It does not include the selling of a company's ownership shares.
An arrangement in a commercial transaction known as a supplier credit states that an exporter will provide products or services to a foreign investor on credit terms. Paying on credit terms denotes that the overseas buyer will either make a single payment at a later time or a series of payments on various future dates that have been mutually agreed upon.
Know more about credit here
https://brainly.com/question/30892491
#SPJ4
break-even sales and sales to realize a target profit for the current year ending october 31, papadakis company expects fixed costs of $451,000, a unit variable cost of $44, and a unit selling price of $66. a. compute the anticipated break-even sales (units). fill in the blank 1 units b. compute the sales (units) required to realize a target profit of $103,400. fill in the blank 2 units
a) The anticipated break-even sales (units) for the current year ending October 31 is 11,275 units.
b) The sales (units) required to realize a target profit of $103,400 for the current year ending October 31 is 5,750 units.
a) To calculate the anticipated break-even sales (units), we need to determine the number of units that the company needs to sell to cover its fixed and variable costs. We can use the following formula to calculate break-even sales:
Break-even sales (units) = Fixed costs ÷ (Unit selling price - Unit variable cost)
Plugging in the given values, we get:
Break-even sales (units) = $451,000 ÷ ($66 - $44) = 11,275 units
b) To compute the sales (units) required to realize a target profit of $103,400, we need to use the following formula:
Sales (units) = (Fixed costs + Target profit) ÷ (Unit selling price - Unit variable cost)
Plugging in the given values, we get:
Sales (units) = ($451,000 + $103,400) ÷ ($66 - $44) = 5,750 units
In summary, break-even sales and sales to realize a target profit are important concepts for businesses to understand their financial performance.
Break-even sales help businesses determine the minimum sales volume they need to cover their costs, while sales to realize a target profit help businesses set and achieve their profit goals.
To learn more about sales click on,
https://brainly.com/question/31391151
#SPJ4
The accounting records of Shinault Inc. Show the following data for 2020 (its fi rst year of operations). 1. Life insurance expense on offi cers was $9,000. 2. Equipment was acquired in early January for $300,000. Straight-line depreciation over a 5-year life is used, with no salvage value. For tax purposes, Shinault used a 30% rate to calculate depreciation
Shinault Inc. recorded $9,000 in life insurance expense and $60,000 in depreciation expense on the equipment in 2020. The company will also have a deferred tax liability due to the difference between financial reporting and tax reporting of depreciation expense.
In 2020, Shinault Inc. incurred $9,000 in life insurance expense for its officers. This expense is recorded on the income statement as part of the company's operating expenses. Life insurance premiums paid on behalf of officers are considered a normal and necessary business expense and are tax deductible.
In addition, the company acquired equipment in early January for $300,000. The equipment has a useful life of 5 years with no salvage value. For financial reporting purposes, Shinault uses straight-line depreciation to allocate the cost of the equipment over its useful life.
Therefore, the company will recognize $60,000 ($300,000/5 years) of depreciation expense each year for the next five years.
For tax purposes, the company uses a 30% rate to calculate depreciation. This means that the company will be able to deduct $90,000 ($300,000 x 30%) of depreciation expense for tax purposes in 2020.
The difference between the financial reporting depreciation expense of $60,000 and the tax depreciation expense of $90,000 will create a deferred tax liability. The deferred tax liability represents the additional taxes that the company will pay in the future due to the timing differences between financial reporting and tax reporting.
In summary, Shinault Inc. recorded $9,000 in life insurance expense and $60,000 in depreciation expense on the equipment in 2020. The company will also have a deferred tax liability due to the difference between financial reporting and tax reporting of depreciation expense.
To know more about depreciation refer here:
https://brainly.com/question/17440027#
#SPJ11
one of the main benefits of a trade block is that member countries
The main benefits of a trade bloc include tariff reductions, common regulations and standards, a platform for negotiation and cooperation, increased bargaining power, and stronger political and cultural ties between member countries. These advantages promote economic growth, stability, and development within the trade bloc.
One of the main benefits of a trade bloc is that member countries can enjoy economic advantages by working together. Trade blocs, such as the European Union (EU) and the North American Free Trade Agreement (NAFTA), consist of countries that have agreed to reduce or eliminate trade barriers among themselves.
The first advantage of a trade bloc is tariff reduction or elimination, which encourages member countries to trade with each other. This promotes economic growth and increases the availability of goods and services, benefiting consumers through lower prices and a wider variety of products. Secondly, trade blocs help to establish common regulations and standards, making it easier for businesses to operate across borders. This fosters investment and encourages businesses to expand their market reach.
Additionally, trade blocs provide a platform for negotiation and cooperation between member countries. This allows for the resolution of trade disputes and the development of shared policies that promote economic stability and growth.
Another benefit is the increased bargaining power of member countries when negotiating with non-member nations. By acting as a united front, trade bloc members can negotiate more favorable trade terms.
To know more about tariffs refer to
https://brainly.com/question/8629679
#SPJ11
Bethany is still not sure what to do with her inheritance money. she has tried researching online but is overwhelmed by the amount of information available. discuss the different sources of financial information and guidance that bethany could use. -12
Different sources of financial information and guidance that Bethany could use can be interacting with financial advisors, online financial resources, social media and other sources of information.
Bethany can get advice and information about finances from a variety of sources when deciding how to use her inheritance. These sources include financial advisors, government organizations, social media, financial books and friends and family.
Online resources like financial news websites, blogs and podcasts are also included. She can create a tailored financial plan with the assistance of a financial advisor. Online sources, governmental organizations and social media platforms can offer financial data on a range of subjects.
Reading financial books can help you gain a deeper understanding of investing and personal finance. Asking friends and family for advice can provide insights based on personal experiences. Bethany can use these tools to plan for her financial future and make well-informed financial decisions.
Learn more about financial advisors at:
brainly.com/question/29767702
#SPJ4
Which type of decision making engages one or more group members in possible solutions? Consultative Autocratic Group Shareholder Select the best response to the following questions. What term refers to the relative structure of the problem being a factor in the quality of the decision making? Problem Goals Information Quality
The type of decision-making that engages one or more group members in possible solutions is consultative decision-making. Regarding the second question, the term that refers to the relative structure of the problem being a factor in the quality of the decision-making is "Problem".
Consultative decision-making involves seeking input and feedback from group members before making a final decision. This type of decision-making can help improve the quality of the decision and increase the commitment of group members to implement it.
The structure of the problem can affect the quality of decision-making because different problems require different approaches and decision-making processes. For example, a simple problem may require a quick decision, while a complex problem may require more time and effort to gather information, analyze options, and consult with others before making a decision.
To learn more about decision-making, refer: https://brainly.com/question/1249089
#SPJ11
Advertising revenue was falling off for my college newspaper,the Stetson Reporter, and large numbers of long-term advertisers were not renewing contracts. I designed a new promotional packet to go with the rate sheet and compared the benefits of Reporter circulation with other ad media in the area. I also set-up a special training session for the account executives with a School of Business Administration professor who discussed competitive selling strategies.
Based on the information you learned from the Mock Interview in Blackboard, this passage illustrates all the steps the STAR method.
A. True
B. False
A. True
The passage clearly describes a situation (S) where advertising revenue was falling off for the Stetson Reporter, and the problem was that long-term advertisers were not renewing contracts. The person then took action (T) by designing a new promotional packet, comparing benefits, and setting up a special training session for the account executives. The result (R) of this action is not explicitly stated in the passage, but it can be assumed that the goal was to increase advertising revenue and retain long-term advertisers. The person also demonstrates their skills and abilities (A) by designing a new promotional packet and arranging a training session with a School of Business Administration professor.
Overall, the passage effectively uses the STAR method to convey the situation, action, and skills involved in addressing the problem of declining advertising revenue. By highlighting specific actions and skills, the person shows their ability to take initiative, think creatively, and collaborate with others to achieve their goals.
Know more about "advertising revenue".
https://brainly.com/question/28289511
#SPJ11
Linda just got approved on an ARM mortgage. What is true?
choose one:
Her taxes will be reduced.
She has a secured loan.
Her interest will be fixed.
She cannot make a down payment
Linda just got approved on an ARM mortgage.
She has a secured loan. This is true
The correct option is (b)
What does ARM mean in mortgage?Adjustable Rate Mortgages
An ARM is an Adjustable Rate Mortgage. Unlike fixed rate mortgages that have an interest rate that remains the same for the life of the loan, the interest rate on an ARM will change periodically.
An ARM mortgage means that the interest rate can be gradually changed based on performance benchmarks, such as a change in it every 6 months.
Hence, by this, we can understand that the loan is secure.
Learn more about Mortgage at:
https://brainly.com/question/31147395
#SPJ4
A company has 1,700 shares of 6%, $100 par value preferred stock the company issued at the beginning of Year 1. All remaining shares are common stock. The company was not able to pay dividends in Year 1, but plans to pay dividends of $22,000 in Year 2. Required:
1. & 2. How much of the $22,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in Year 2, assuming the preferred stock is cumulative? What if the preferred stock were noncumulative?
If the preferred stock is cumulative, the company must first pay any missed dividends from the previous year before paying any dividends to common stockholders. The remaining $11,500 of the $22,000 dividend would be paid to common stockholders.
In this case, the missed dividend from Year 1 is 1,700 shares x $100 par value x 6% dividend rate = $10,200.
Therefore, the preferred stockholders will receive $10,200 + $10,500 (1,700 shares x $100 par value x 6% dividend rate for Year 2) = $20,700 of the $22,000 dividend, and the remaining $1,300 will be paid to common stockholders.
If the preferred stock were noncumulative, the missed dividend from Year 1 would not have to be paid, and the preferred stockholders would only receive $10,500 (1,700 shares x $100 par value x 6% dividend rate for Year 2).
To know more about cumulative refer here:
https://brainly.com/question/30087370#
#SPJ11
Jones sold the assets and liabilities of her coin-operated laundry to Kevin Katz for $10,000. The assets of the business included all of the washers and dryers. The liabilities included the amounts still owing on seven new dryers, which had been purchased recently from Dryer Company under an installment contract. Katz agreed to make the installment payments on the new dryers as they came due. After Katz failed to make an installment payment when it was due, Dryer Company sued Jones. Jones claimed she no longer was liable. How will the court decide
In this scenario, The court will decide in favor of the dryer company.
This is because the offer of the business to Katz involved both a task of freedom and a designation of obligations. Even though Jones appointed Katz the obligation to make installments under the agreement with Dryer Organization, she stays at risk to Dryer Organization for Katz's inability to perform and should make the portion installments to Dryer Organization on the off chance that Katz doesn't do as such.
Judgment for Dryer. Jones designated to Katz the obligation to make installments, however, she stays at risk to Dryer Organization for Katz's inability to perform and should make the portion installments on the off chance that Katz doesn't do as such.
Learn more about dryer company:
https://brainly.com/question/22212267
#SPJ4
Providing options for comprehension, language, and perception would be consider as critical success factors for which udl principle for supporting variability?.
Providing options for comprehension, language, and perception is considered a critical success factor for the UDL (Universal Design for Learning) principle of "Representation".
The Representation principle emphasizes the importance of providing multiple ways of representing information to learners, so that they can access and comprehend the content in ways that work best for them. This can include providing information in multiple formats (e.g. text, audio, video), using different modalities (e.g. visual, auditory, kinesthetic), and providing options for language, perception, and comprehension.
By providing these options, learners can choose the representation mode that best fits their learning needs and preferences, which can help to optimize their learning outcomes. In other words, the Representation principle recognizes that there is no one-size-fits-all approach to learning, and that providing options for representation is essential for supporting learner variability and promoting inclusive education.
To learn more about variability here
https://brainly.com/question/12872866
#SPJ4
You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner (leasing is a very common practice with expensive, high-tech equipment). The scanner costs $5,900,000, and it would be depreciated straight-line to zero over four years. Because of radiation contamination, it actually will be completely valueless in four years. You can lease it for $1,730,000 per year for four years. Assume that the tax rate is 24 percent. You can borrow at 7 percent before taxes. What is the NAL of the lease? (Do not round intermediate calculations and round your answer to 2 decimal places, e. G. , 32. 16. )
Leasing the diagnostic scanner is financially advantageous over buying it since the NAL is positive ($4,442,726). Other factors such as maintenance costs and availability should be considered before making a final decision.
To determine whether leasing the diagnostic scanner is a financially viable option, we can calculate the Net Advantage to Leasing (NAL) the lease. NAL is the difference between the present value of the cash flows associated with leasing and the present value of the cash flows associated with buying the asset.
First, we need to calculate the depreciation per year, which would be $1,475,000 ($5,900,000 / 4 years).
Next, we need to calculate the tax shield associated with depreciation. Since the tax rate is 24%, the tax shield for each year would be $354,000 ($1,475,000 x 24%).
To calculate the present value of the cash flows associated with leasing, we can use the present value annuity formula.
[tex]$PV = \frac{C \times [1 - (1 + r)^{-n}]}{r}$[/tex]
where PV is the present value, C is the annual cash flow, r is the discount rate, and n is the number of years.
Using this formula, we get the present value of the lease payments to be $5,651,324.
To calculate the present value of the cash flows associated with buying the asset, we need to calculate the present value of the tax shield associated with depreciation and the present value of the salvage value of the asset.
The present value of the tax shield associated with depreciation can be calculated using the present value of a growing perpetuity formula:
[tex]$PV = \frac{C \times (1+g)}{r-g}$[/tex]
where C is the annual cash flow, g is the growth rate (which is zero since the depreciation is straight-line), and r is the discount rate.
Using this formula, we get the present value of the tax shield to be $1,208,598.
The present value of the salvage value can be calculated by discounting it back to the present using the discount rate. Since the salvage value is zero, the present value is also zero.
Therefore, the NAL of the lease is $4,442,726.
This means that leasing the diagnostic scanner is financially advantageous over buying it since the NAL is positive. It is important to consider other factors such as maintenance costs and the availability of the asset before making a final decision.
To learn more about leasing
https://brainly.com/question/15609473
#SPJ4
regardless of the assessed risk of material misstatement, an auditor would perform: tests of controls to determine the effectiveness of internal control policies. analytical procedures to verify the design of internal control procedures.
Regardless of the assessed risk of material misstatement, an auditor would perform tests of controls to determine the effectiveness of internal control policies and analytical procedures to verify the design of internal control procedures.
This is because auditing standards require auditors to obtain sufficient and appropriate evidence to support their opinion on the financial statements. Tests of controls are used to evaluate the effectiveness of internal controls in preventing or detecting material misstatements. Even if the auditor assesses the risk of material misstatement as low, they still need to test controls to ensure that the controls are operating effectively. This is because effective internal controls can provide reasonable assurance that the financial statements are free from material misstatement.
On the other hand, analytical procedures are used to evaluate relationships among financial and non-financial data. These procedures can help identify unusual trends or fluctuations in account balances, which may indicate the presence of material misstatement. Analytical procedures can also help auditors verify the design of internal control procedures by comparing the results of the procedures with the expected outcomes.
In summary, regardless of the assessed risk of material misstatement, auditors need to perform tests of controls to determine the effectiveness of internal control policies and analytical procedures to verify the design of internal control procedures. This is important to obtain sufficient and appropriate evidence to support their opinion on the financial statements.
For more such questions analytical procedures
https://brainly.com/question/31329119
#SPJ11
3 If interest rates are currently 3. 5%, and Shaili sold the bond today, would she expect to get more than, less than, or equal to $1000 for it?
If interest rates are currently 3.5% and Shaili sold the bond today, she would expect to get less than $1000 for it.
This is because the bond pays a fixed interest rate of 5%, which is higher than the current interest rate of 3.5%. As a result, the bond would be more valuable to investors looking for higher returns on their investments, and its market price would be bid up above its face value of $1000.
Conversely, if interest rates were to rise above 5%, the bond would become less attractive to investors, as they could earn higher returns by investing in newly issued bonds paying higher interest rates. This would put downward pressure on the market price of the bond, causing it to sell for less than its face value.
Therefore, in the current scenario where interest rates are lower than the bond's coupon rate, Shaili would expect to sell the bond for more than its face value if the bond was issued at a discount, and for less than its face value if the bond was issued at a premium.
learn more about interest rate here:
https://brainly.com/question/29451175
#SPJ11
Tanner-unf corporation acquired as a long-term investment $300 million of 4.0% bonds, dated july 1, on july 1, 2021. company management has the positive intent and ability to hold the bonds until maturity. the market interest rate (yield) was 6% for bonds of similar risk and maturity. tanner-unf paid $270.0 million for the bonds. the company will receive interest semiannually on june 30 and december 31. as a result of changing market conditions, the fair value of the bonds at december 31, 2021, was $280.0 million
required:
a. prepare the journal entry to record tanner-unf's investment in the bonds on july 1, 2021 and interest on december 31, 2021, at the effective (market) rate.
b. at what amount will tanner-unf report its investment in the december 31, 2021, balance sheet?
Fair value adjustment is $4,800,000 and Tanner-unf will report its investment in the December 31, 2021, balance sheet at fair value, which is $280,000,000.
(A) Face value of bonds = $300,000,000
Annual coupon rate = 4.0%
Semiannual coupon payment = 0.04/2 * $300,000,000 = $6,000,000
Effective interest rate = 6.0%/2 = 3.0%
Interest income for 6 months = $300,000,000 * 3.0% = $9,000,000
Less: Interest received on June 30, 2021 = $6,000,000
Interest income for the period = $9,000,000 - $6,000,000 = $3,000,000
Calculation of fair value adjustment:
Fair value of bonds at December 31, 2021 = $280,000,000
Amortized cost of bonds at December 31, 2021 = $270,000,000 + $5,200,000 = $275,200,000
Fair value adjustment = $280,000,000 - $275,200,000 = $4,800,000
(b). Tanner-unf will report its investment in the December 31, 2021, balance sheet at fair value, which is $280,000,000. This is because the company intends to hold the bonds as a long-term investment and has the ability to do so, and the fair value option is elected. Therefore, any changes in fair value are recognized in the income statement.
To know more about investment
https://brainly.com/question/31773605
#SPJ4
According to the five forces model, _______ levels of competition for customers translate to _______ levels of profit in the industry.
According to the five forces model, High levels of competition for customers translate to low levels of profit in the industry.
This is because when there is intense competition, customers have more options to choose from, giving them greater bargaining power. As a result, companies may need to lower their prices or offer additional incentives to attract and retain customers.
This can lead to reduced profit margins for businesses as they strive to remain competitive. Additionally, increased competition often leads to market saturation, making it challenging for companies to differentiate themselves and maintain a sustainable competitive advantage, further impacting profitability in the industry.
To know more about five forces model , refer here :
https://brainly.com/question/28901552#
#SPJ11
