(i) Calculate the annual accounting profit of Ashely's snack business. (ii) Ashley will be involved in the daily operations of this snack business and has to give up the opportunity to get a full-time job. În consideration of annual economic profit, in what condition should Ashley start this business? Explain with relevant figures.
Q: Cab fare to and from restaurants Gratuity at restaurants Meals Cover charges expenses are…
A: Introduction: Businesses incur a variety of expenses. An expense is a form of spending that appears…
Q: find the Net profit or (loss). This information is for Schedule C. Form 1040. Thank you in advance…
A: Computation of Net Profit or (Loss) as follows: TRADING & PROFIT AND LOSS ACCOUNT…
Q: a) John, age 60, purchases an annuity from an insurance company for $90,000. He is to receive $500…
A: a) John who aged 60 Purchased an annuity from a insurance company Cost = $90000 Receives income per…
Q: ackie owns a temporary employment agency that hires personnel to perform accounting services for…
A: Tax Deductible -All expenses deemed "ordinary, necessary, and reasonable" that support a business's…
Q: Lindsay is 25 years old and has a new job in web development. She wants to make sure that she is…
A: Here, Time Period of Retirement (NPER) 30 Annual Investment (PMT) $14,000.00 Interest Rate…
Q: A former needs to pay supplyers 5000 for seeds which he can repay when he sells crop two months…
A: As the former needs to pay its suppliers for seeds which he can repay after by selling the crops…
Q: (a) Construct a data table that will show Lindsay the balance of her retirement account for various…
A: Present value is the discounted value of the future cash flows and final value is the future value…
Q: The investor should accept?
A: Investor's money is due on December 31. However Juliette is willing to make an early payment on…
Q: Sam quit a $30,000-a-year job with a local heating and air conditioningfirm to go into business for…
A: Profit refers income of a person which is obtained due to economic activities.
Q: Dr Mo started his own medical practice at the end of 2020. At the end of his second year in business…
A: Financial knowledge:A basic amount of financial knowledge is defined as the knowing the basics of…
Q: Jessica's Auto Service has had to close their doors for business while they try to get a loan so…
A: Variable Expense :— It is the expense that depends on the units produced or services to be provided.…
Q: Basil, after finishing his graduation joined his father’s small business of buying and selling…
A: Employee means the person who is working in some firm and getting salary. Entrepreneur means the…
Q: The sole proprietor of the "Books and Children" bookstore receives all accounting profits earned by…
A: The objective of this question is to calculate the implicit cost and the economic profit for the…
Q: THIS QUESTION REQUIRES AN ESSAY STYLE ANSWER Timing is very important when preparing the end of…
A: Services: Services (theoretical) are act or use for which a shopper, firm, or government will pay.…
Q: Consider the following scenario in relation to your Notary, Loan Signing Agent and Marriage…
A: In this question, we are required to determine the opportunity cost and ways to reduce it.
Q: (a) A savings and loan association has offered her a 10-year small business loan at an annual…
A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…
Q: Lindsay is 25 years old and has a new job in web development. She wants to make sure that she is…
A: Data given: Investment amount per year = $ 12,000 N= 30 years Rate = 7% p.a. Required: Amount in her…
Q: Comment on the performance of Bart D’Souza’s company. How is the company doing? He is working at…
A: financial statements like income statements, balance sheets, and cash flow statements are usually…
Q: Jon Yanta, owner of Yanta’s Yard Care, is disappointed that his business incurred a net loss for…
A: Net Income:-It is income obtained by subtracting expenses from Revenue during the period. This…
Q: Ira recently moved to take a job. For the first month on the new job, Ira was searching for a home…
A: Gross income: It is the income which one earns from the contribution made to the work during the…
Q: Financial update as of June 15 • Your existing business generates $75,000 in EBIT. • The corporate…
A: The cash generated by a company after accounting for cash outflows to support operations and…
Q: 1. Flexible expenses may include: A. Clothing B. Utilities C. Food D. All of these E. None of these…
A: Flexible expenses may include: Option D is correct: All of these.Flexible expenses are those that…
Q: Margaret is the manager of a medium-size company. A few years ago, Margaret persuaded the owner to…
A: The doubtful debt is considered as an expense and dedi=ucted from the revenues in order to calculate…
Q: What amount of these investigation costs can Angel deduct if she opens the bookstore on August 1,…
A: For the first year start-up tax deduction oo $5000 for start-up cost ( legal expenses,advertising,…
Q: Suppose your expenses for this term are as follows: tuition: $12,000, room and board: $6,500, books…
A: Opportunity cost is the value that a company, investor, or individual customer loses out on when…
Q: Lindsay is 25 years old and has a new job in web development. Lindsay wants to make sure that they…
A: Retirement income refers to the financial resources that individuals receive during their retirement…
Q: To purchase $11,600 worth of machinery for her business, Jane made a down payment of $1700 and took…
A: Jane purchased machinery for her business, making an $1,700 down payment and securing a loan for the…
Q: indsay is 25 years old and has a new job in web development. She wants to make sure that she is…
A: It has been provided: Time Period = 30 years Annual Investment = $ 13,000.00 Interest Rate = 9%…
Q: Eric is going to set up sole trader business as Decorator. he knows that he will be responsible for…
A: Business refers to an enterprise or the firm who is involved or engaged in performing the commercial…
Q: What was the economic profit or loss of Julian’s online clothing store in 2019? E. Evaluate the…
A: Economic Profit is the Profit earned by any Person after subtracting the actual costs incurred to…
Q: Jim Sandrolini is an accountant for a local manufacturing company. Jim's good friend, Dan…
A: Accounting: Business ethics are business policies and practices which are made to conduct a business…
Q: Deon is 33 years old. In 2022, he reported an AGI of $11,000, all from his job as a server at the…
A: Adjusted gross earnings (AGI) is the discernment that the Internal Revenue Service (IRS) uses to…
Q: The median annual income for someone with an Associates Degree is $31,936. The median annual income…
A: Cost of bachelor's degree Cost of tuition and Fees $55,000 Lost of earnings $64,000 Total…
Q: Suppose you have a job that pays you $15,000 a year. You receive a credit application in the mail…
A: Given situation: Annual pay = $15000 Pre-approved loan = $3000 Required: Minimum income of $18000…
Q: Kindly help with 1. Explaining what drawings are concerning small business in the above scenario…
A: Drawings - Drawings will be defined as amount withdrawn from the business for personal use.
Q: The sole proprietor of the "Books and Children" bookstore receives all accounting profits earned by…
A: The objective of this question is to calculate the implicit cost and the economic profit for the…
Q: rk on July 1, 2020, as a staff accountant at a nearby professional services firm with a starting…
A: a) Determine the number of withholding allowances that I would claim on her Form W-4. Jane would…
Q: Melissa recently paid $760 for round trip airfare to San Francisco to attend a business conference…
A: Lets understand the basics.Business expenses are costs incurred in the ordinary course of business.…
Q: Jayda, who is self-employed, maintains an office in her home that comprises 16% (370 square feet) of…
A: IRS allows the qualified taxpayer to deduct some housing costs, including utilities, mortgage…
Q: You drafted the following information and filed it up: Net income with the new equipment Less…
A: Needs to analyze the decisions of partnering with Dindin in the existing business of Alyssa.
Q: Jayda, who is self-employed, maintains an office in her home that comprises 26% (360 square feet) of…
A: Some housing costs, including utilities, mortgage interest, and property taxes, can be written off…
Q: Discuss the differences between efficiency and effectiveness.
A: It is a question with multiple questions, therefore we will do the first question. To get solved the…
Q: SUE WAS CONSIDERING STARTING A NEW BUSINESS. DURING HER PRELIMINARY INVESTIGATION RELATED TO THE NEW…
A: Amortization -The limited usable life of intangible assets is determined by several reasons such as…
Q: How do I do a general journal entry on this scenario: Seeing that the business is getting some…
A: Journal entry: It is also called as book of original entry. All financial transactions occurred in a…
Step by step
Solved in 3 steps
- Mattie's Mums and More is a budding flower business. Review their Income Statement to answer the questions. 1. What is Mattie's Gross Profit? 2. What is the company's Operating Income? 3. What is the Net Income for Mattie's Mums and More? 4. Which of the following changes would increase the Net Income of Mattie's business?: 5. What time period does this Income Statement cover? :Suppose you are the only owner of a chain of coffee shops near universities. Your current cafés are doing well, but you are interested in starting a fine-dining restaurant. You decide to use the cash generated from your existing business to enter into a new business. Your accountant provides you with the following data on your current financial performance: Financial update as of June 15 • Your existing business generates $111,000 in EBIT. • The corporate tax rate applicable to your business is 25%. • The depreciation expense reported in the financial statements is $21,143. • You don’t need to spend any money for new equipment in your existing cafés; however, you do need $16,650 of additional cash. • You also need to purchase $8,880 in additional supplies—such as tableclothes and napkins, and more formal tableware—on credit. • It is also estimated that your accruals, including taxes and wages payable, will increase by $5,550. Based on your evaluation you have…Albion is looking for ways to increase his bottom line by reducing his operating expenses, so he consults his most recent income statement. which of the following should he focus on? a.) Advertising costs b.) Interest payments c.) Income taxes d.) Foreign exchange losses
- Upon graduating with an accounting degree, you open your own accounting firm of which you are the sole employee. To start the firm you passed on a job offer with a large accounting firm that offered you a salary of RM60,000 annually. Last year you earned a total revenue of RM100,000. Rent and supplies last year were RM50,000. Based on the above information, describe the condition of your firm.A year after declaring bankruptcy and moving with her daughter back into her parents’ home, June Maffeo is about to get a degree in nursing. As she starts out in a new career, she also wants to begin a new life—one built on a solid financial base. June will be starting out as a full-time nurse at a salary of $52,000 a year, and she plans to continue working at a second (part-time) nursing job with an annual income of $10,500. She’ll be paying back $24,000 in bankruptcy debts and wants to be able to move into an apartment within a year and then buy a condo or house in five years. June won’t have to pay rent for the time that she lives with her parents. She also will have child care at no cost, which will continue after she and her daughter are able to move out on their own. While the living arrangement with her parents is great financially, the accommodations are “tight,” and June’s work hours interfere with her parents’ routines. Everyone agrees that one more year of this is about all…Mary Graham worked as a real estate agent for Piedmont Properties for 15 years. Her annual income is approximately $100,000 per year. Mary is considering establishing her own real estate agency. She expects to generate revenues during the first year of $2 million. Salaries paid to her employees are expected to total $1.5 million. Operating expenses (i.e., rent, supplies, utility services) are expected to total $250,000. To begin the business, Mary must borrow $500,000 from her bank at an interest rate of 15 percent. Equipment will cost Mary $50,000. At the end of one year, the value of this equipment will be $30,000, even though the depreciation expense for tax purposes is only $5,000 during the first year.a. Determine the (pre-tax) accounting profit for this venture.b. Determine the (pre-tax) economic profit for this venture.c. Which of the costs for this firm are explicit and which are implicit?
- Identify factors in an ethical decision. Jim Sandrolini is an accountant for a local manufacturing company, Jim's good friend, Dan Carruthers, has been operating a retail sporting goods store for about a year. The store has been moderately successful, and Dan needs a bank loan to help finance the next stage of his store's growth. He has asked Jim to prepare financial statements that the banker will use to help decide whether to grant the loan. Dan has proposed that the fee he will pay for Jim's accounting work should be contingent upon his receiving the loan. Required: What factors should Jim consider when making his decision about whether to prepare the financial statements for Dan's store?Read the following passage, then answer the question that follow. Scenario Milly decided to start a business. She does not have any previous experience, but she is confident that she can make it in the restaurant business. She wants to start a business with an initial investment of $1million dollars in a business bank account. She plans to offer both dining and take-out meal services and is anxious to give it her all.On Jan 1, 2002, she brought additional items into her business: her personal car, her stove and a refrigerator valued at $500, 000, $100 000 and $80 000 respectively. On January 6, a customer purchased 10 meals that cost $500 each for which she wrote a receipt. These meals were bought via take out service. At the end of the first week her total sales amounted to $180 000 from which $100 000 was dining room sales and $80 000 from take-out sales. She has a few friends that she allows to order- take-out meals on credit and they have agreed to pay…Brandi holds two jobs and attends graduate school on weekends. The education improves her skills, but does not qualify her for a new trade of business. Before going to the second job, she returns home for dinner. Relevant mileage is as follows? Home to first job 10 miles First job to second job 15 miles Home to second job 18 miles Home to university 9 miles How much of the mileage qualifies for deduction purposes?
- Lindsay is 25 years old and has a new job in web development. She wants to make sure that she is financially sound in 30 years, so she plans to invest the same amount into a retirement account at the end of every year for the next 30 years. Note that because Lindsay invests at the end of the year, there is no interest earned on the contribution for the year in which she contributes. (a) Construct a data table that will show Lindsay the balance of her retirement account for various levels of annual investment and return. If Lindsay invests $12,000 at a return of 11% how much will she have (in dollars) in her retirement account at the end of 30 years. (Round your answer to the nearest dollar.) $ (b) Develop the two-way table for annual investment amounts of $5,000 to $20,000 in increments of $1,000 and for returns of 0% to 12% in increments of 1%. Using the table, what are the minimum annual investments Lindsay must contribute (in dollars) for annual rates ranging from 7% to 11% to…Identify the following questions as most likely to be asked by an internal (I) or an external (E) userof accounting information. Should we make a five-year loan to that business?Question 8. Jacqui decides to open her own business and earns $50,000 in accounting profit the first year. When deciding to open her own business, she withdrew $20,000 from her savings, which earned 5 percent interest. She also turned down three separate job offers with annual salaries of $30,000, $40,000, and $45,000. What is Jacqui's economic profit from running her own business? a. $-56,000 b. $-6,000 c. $4,000 d. $19,000