In: Finance
In: Finance
In: Finance
In: Finance
Equipment is purchased for $ 250,000 in year 0 and is expected to sell for $ 25,000 after 5 years of use. Suppose the company estimates income and expenses of the equipment for the following first year of operation: Income $ 600,000, Expenses $ 260,000, Depreciation $ 45,000. If the company pays taxes at a rate of 35%, what is the after-tax cash flow for the first year?
In: Economics
In: Economics
A total of $4,200 in supplies was purchased during the year. At the end of the year $1,100 of the supplies were left. The adjusting entry needed at the end of the year is:
Multiple Choice
debit Supplies Expense $4,200; credit Supplies $4,200
debit Supplies Expense $3,100; credit Supplies $3,100
debit Supplies Expense $1,100; credit Supplies $1,100
debit Supplies $3,100; credit Supplies Expense $3,100
In: Accounting
Charlie was hired by Ajax this year as a corporate executive and
a member of the board of directors. During the current year,
Charlie received the following payments or benefits paid on his
behalf.
| Salary payments | $ | 118,000 |
| Contributions to qualified pension plan | 11,600 | |
| Qualified health insurance premiums | 11,950 | |
| Year-end bonus | 21,000 | |
| Annual director’s fee | 19,900 | |
| Group-term life insurance premiums (face = $40,000) | 880 | |
| Whole life insurance premiums (face = $100,000) | 1,970 | |
| Disability insurance premiums (no special elections) | 4,090 | |
a. Charlie uses the cash method and calendar year
for tax purposes. Calculate Charlie’s gross income for the current
year.
In: Accounting
A stock is expected to pay a dividend of $1 at the end of the year. The required rate of return is rs = 11%, and the expected constant growth rate is 5%. What is the current stock price?
Select one:
a. $16.67
b. $18.83
c. $21.67
d. $23.33
e. $20.00
The primary operating goal of a publicly-owned firm interested in serving its stockholders should be to
Select one:
a. Maximize its expected total corporate income
b. Maximize its expected EPS
c. Minimize the chances of losses
d. Maximize the stock price per share over the long run which is the stocks's intrinsic value.
e. Maximize the stock price on a specific target date
Leggio Corporation issued 20-year, 7% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds has dropped to 6%. What is the new price of the bonds, given that they now have 19 years to maturity?
Select one:
a. $1,046.59
b. $1,111.58
c. $1,133.40
d. $1,177.78
e. $1,189.04
In: Finance
It is the end of the fiscal year for Company A, a manufacturing company. Looking at the projected income for the year, it looks like income will be too low for anyone to get bonuses. The controller, Shelly Game', is looking over accounting records to make sure that everything is correct for annual income statements. Currently, the accounting department has $50,000 of depreciation expenses associated with computer hardware and software used to calculate product cost, WIP, FGI, and COGS. Since this is part of Accounting expenses, these costs are classified as period costs and recorded as part of Selling and Administrative expenses. Game' is considering proposing that these costs be classified as manufacturing overhead rather than period costs. This change would move these costs to FGI, and make income for the year high enough for employees to get bonuses. Looking at the IMA Statement of Ethical Professional Practice, discuss What the ethical issues are in this situation? What are Game's responsibilities as a management accountant?
In: Accounting