Starlight Industries reports an increase in sales of $75,000 and a decrease in expenses of $15,000. Assuming a tax rate of 28%, what is the effect on net income?
Q: Correct Answer
A: Concept of Cash SalesCash Sales refer to revenue generated from sales transactions where payment is…
Q: given correct answer Accounting question
A: The CAPM formula is:Cost of Common Stock = Risk-Free Rate + (Beta * Market Risk Premium)…
Q: ?? Financial accounting
A: To calculate the standard rate per direct labor hour, we need to add the base labor rate, the cost…
Q: Provide answer general Accounting
A: Step 1: Gross profit Gross profit = Sales - Cost of goods soldGross profit = $800 - $600Gross profit…
Q: Subject: financial accounting
A: Step 1: Define Inventory Turnover and Average Days to Sell InventoryInventory Turnover measures how…
Q: General accounting
A: Step 1: Definition of Gross Profit Method for Estimating InventoryThe gross profit method is used to…
Q: General Accounting
A: Step 1: Determine the initial and final accounts receivable:Beginning Accounts Receivable (at start…
Q: Kindly help me with accounting questions
A: Step 1: Definition of Variable CostingVariable costing is a cost accounting method that includes…
Q: Sierra Adventures has a net income of $3 million this year. The book value of Sierra Adventures'…
A: The internal growth rate (IGR) is the maximum rate at which a company can grow its assets without…
Q: I want answer
A: Explanation of Inventory Conversion Period: The inventory conversion period represents the average…
Q: Accurate answer
A: Explanation of Cost of Goods Sold (COGS):Cost of Goods Sold (COGS) represents the direct costs…
Q: What is the recognized gain on the sale
A: Harland's purchases and the corresponding cost basis:1995 purchase: 40 shares at $25 per share = 40…
Q: Financial Accounting
A: Step 1: Define Debt-Equity Ratio (Market Value Basis)The Debt-Equity Ratio (Market Value Basis) is a…
Q: Compute the production cost
A: Explanation of Variable Costing:Variable costing is an accounting method that only considers…
Q: A company produces work boots
A: The Manufacturing Cycle Efficiency (MCE) is calculated using the formula:MCE=Process Time/Total…
Q: True option? ? General Accounting
A: Compute the gross profit.Gross profit = Net sales - Cost of goods soldGross profit = 250,000 -…
Q: Compute the debt equity ratio of this financial accounting question not use ai
A: Step 1: Definition of Debt-Equity RatioThe Debt-Equity Ratio is a measure of financial leverage that…
Q: Determine the equipment units of production
A: Explanation of Equivalent Units of Production (EUP):Equivalent units of production (EUP) represent…
Q: What is Jonathan net income after these transactions?
A: Explanation of Revenue:Revenue refers to the total income generated by a business from the sale of…
Q: March, April, and May sales are $100,000, $120,000, and $125,000, respectively. 20% of sales are…
A: Step 1: Definition of Accounts Receivable and Cash CollectionsAccounts receivable refers to money…
Q: Ans? ? Financial accounting
A: Step 1: Define Cost of Goods Sold (COGS)Cost of Goods Sold (COGS) represents the total cost of…
Q: General accounting question
A: Step 1: Definition of Inventoriable CostsInventoriable costs refer to all costs incurred in the…
Q: Gnomes R Us just paid a dividend of $3.22 per share. The company has a dividend payout ratio of 64…
A: Earnings Per Share (EPS):= Dividend per share / Dividend payout ratio= $3.22 / 0.64EPS = $5.03 Stock…
Q: How much was the company's ending inventory of this financial accounting question?
A: Step 1: Definition of Ending InventoryEnding Inventory refers to the total value of goods that…
Q: A company’s fixed monthly expenses are $35,000, and its contribution margin ratio is 62%. Assuming…
A: Explanation of Net Operating Income:The net operating income (NOI) represents the profit a company…
Q: SUBJECT FINANCIAL ACCOUNTING
A: Explanation of Sustainable Growth Rate (SGR):The sustainable growth rate (SGR) is the maximum rate…
Q: ABC is an all-equity firm that has 44,200 shares of stock outstanding at a market price of $14.70…
A: CONCEPTS:1. Capital Structure Restructuring - This involves changing how a company finances its…
Q: Kindly help me with accounting questions
A: Step 1: Definition of Recognized GainRecognized gain refers to the taxable portion of proceeds…
Q: A fixed asset with a cost of dollar 42,200 and accumulated depreciation of dollar 36,500 is sold for…
A: Concept of Book ValueThe book value of an asset represents its net worth after accounting for…
Q: What is the maturity value of the note
A: The question requires the determination of the maturity value of the note.The value of maturity of a…
Q: Building from the Module 2 Critical Thinking assignment about your company’s water purification…
A: First, you need to research what the target country produces and exports. This information can be…
Q: Need help with this general accounting question
A: Step 1: Define Predetermined Overhead Rate (POHR)The Predetermined Overhead Rate (POHR) is a rate…
Q: Answer? ? Financial accounting
A: Step 1: Define Straight-Line DepreciationStraight-line depreciation spreads the cost of an asset…
Q: ?
A: Step 1: Contribution margin ratio.= (unit selling price - unit variable cost) / unit selling price=…
Q: General Accounting
A: Step 1: Contribution margin ratio Basis: Sales so the sales ratio is 100%Contribution margin ratio =…
Q: Please answer me this accounting question
A: We are tasked to determine how many shares the company has after share repurchase. A share…
Q: Need help with this accounting questions
A: Step 1: Definition of Profitability Index (PI)The Profitability Index (PI) is a financial metric…
Q: Hello ticher given correct answer general Accounting
A: Image.Explanation.The Capital Asset Pricing Model (CAPM) is a widely used financial model that…
Q: How many units were completed during the period?
A: Step 1: Definition of Process CostingProcess costing is a costing method used to allocate production…
Q: help me to solve this questions
A: Step 1: Definition of Overhead CostsManufacturing Overhead Costs include indirect costs incurred…
Q: Problem? General Accounting question
A: Step 1: Define Total Cost to be Accounted ForTotal cost to be accounted for in a department's cost…
Q: Sub. General accounting
A: Step 1: Define Operating ExpensesThe operating expenses are reduced from the net revenue to get…
Q: Give me Answer
A: 1. Calculate the total cycle time:Cycle time is the sum of all the times involved in producing the…
Q: General Accounting
A: Step 1:First, calculate the total sales revenue generated from regular sales and clearance sales:…
Q: help me to solve this questions
A: The Gross Profit Margin is a financial metric that shows the percentage of revenue that exceeds the…
Q: Give me ans
A: The question requires the determination of the sales for the month. Monthly sales refer to the total…
Q: I don't know answer please help me
A: Step 1: Definition of Debt-to-Equity RatioThe Debt-to-Equity Ratio (D/E) measures the relationship…
Q: TICA Corporation had sales of $72 million this year. Its accounts receivable balance averaged $2.4…
A: To compute how long does it take the firm to collect on its sales, we'll use the Days Sales…
Q: At the end of last year, Harvey, a 25% partner in the four-person HRT partnership, had an outside…
A: Explanation of Partnership Interest Sale:A partnership interest sale occurs when a partner transfers…
Q: need help this questions
A: Step 1: Definition of Accounting Equation:The accounting equation is the basis for determining and…
What is effect on net income of this financial accounting question?
Step by step
Solved in 2 steps
- Please answer this question.Financial AccountingNational Company's net income last year was P65,000 and its interest expense was P15,000. Total assets at the beginning of the year were P630,000 and total assets at the end of the year were P650,000. The company's income tax rate was 25%. The company's return on total assets (based on adjusted net income) for the year was closest to?
- For the past year, shame ltd., had sales of $45,002, interest expense of $4,306, cost of goods sold of $18,349, selling and administrative expense of $12,146, and depreciation of $6,995. If the tax rate was 33 percent, what was the company's net income?Diamond, Inc. had the following Income Statement at the end of the year. Compute Diamond's federal income tax expense given the tax rate of 21%. What is the company's net income?Calculate net income after taxes using a 34% tax rate ??
- Bryon Brooks Inc. recently reported 15 million of net income. Its EBIT was 20.8 million, and its tax rate was 25%. What was its intrest expense?(Hint: Write out the headings for an income statement, and fill in the known values. Then divide 15 million of net income by (1-T)= 0.75 to find the pretax income. The difference between EBIT and taxable income must be intrest expense.. Great Products, Inc. reported the following on the company’s income statement in two recent years:Current Year Prior YearInterest Expense $270,000 $250,000Income before income tax expense 4,212,000 3,450,000a. Determine the times interest earned ratio for the current year and the prior year. Round to one decimal place. b. Is the times interest earned ratio improving or declining?For the past year, Momsen, Ltd., had sales of $44,042, interest expense of $2,918, cost of goods sold of $14,559, selling and administrative expense of $10,626, and depreciation of $4,675. If the tax rate was 35 percent, what was the company's net income?
- Molteni Motors Inc. recently reported $6 million of net income. Its EBIT was$13 million, and its tax rate was 40%. What was its interest expense? (Hint:Write out the headings for an income statement and then fill in the knownvalues. Then divide $6 million net income by 1 - T = 0.6 to find the pretax income. The difference between EBIT and taxable income must be theinterest expense. Use this procedure to work some of the other problems.)Medium Manufacturers, Inc. (MMI) has the following items on its Income Statement for last year: Sales of $459,500, Cost of Goods Sold of $325,789, Cash Operating Expenses of $45,795, Depreciation Expense of $33,595, Interest Expense of $8,796, and a Marginal Tax Rate of 25%. Medium Manufacturers, Inc. (MMI) has the following items on its Balance Sheet for last year: Cash of $16,495, Accounts Receivable of $49,786, Inventory of $54,997, Short Term Investments of $85,039, Gross Fixed Assets of $429,750, Accumulated Depreciation of $95,847, Accounts Payable of $39,875, Accrued Expenses of $5,496, Short Term Notes Payable of $17,950, Long Term Debt of $105,345, Common Stock of $75,678 with a $1 Par Value, Additional Paid in Capital of $95,876, and Retained Earnings of $200,000. MMI paid Cash Dividends last year of $10,243. 9) What was MMI’s Beginning of Year Retained Earnings Balance last year to the nearest cent?Sprout Company reported the following on the company's income statement in two recent years: Current Year Prior Year Interest expense $510,000 $480,000 Income before income tax expense 5,610,000 6,720,000 a. Determine the times interest earned ratio for the current year and the prior year. Current year Prior Year b. Is the times interest earned ratio improving or declining?