A company started the year with $185,000 of goods finished and ready for sale. During the year, a total of $700,000 of goods were started in production. Of the goods started, $550,000 were finished during the year.
If total cost of goods sold for the year equals $625,000, the company's ending finished goods inventory equals $
In: Accounting
Jenny and Mike are married and earned salaries this year of $72,800 and $15,300, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $1,600 from corporate bonds. Jenny contributed $3,600 to an individual retirement account, and Jenny paid alimony to a prior spouse in the amount of $2,600 (under a divorce decree effective June 1, 2005). Jenny and Mike have a 10-year-old son, Daniel, who lived with them throughout the entire year. Thus, Jenny and Mike are allowed to claim a $2,000 child tax credit for Daniel. Jenny and Mike paid $8,200 of expenditures that qualify as itemized deductions and they had a total of $6,955 in federal income taxes withheld from their paychecks during the year. (Use the tax rate schedules.)
1. What is Jenny and Mike's gross income
2. What is Jenny and Mike's adjusted gross income
3. What is the total amount of Jenny and Mike's deductions from AGI?
4. What is Jenny and Mike’s taxable income?
5. What is Jenny and Mike’s taxes payable or refund due for the year?
Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)
| If taxable income is over: | But not over: | The tax is: |
|---|---|---|
| $ 0 | $ 19,750 | 10% of taxable income |
| $ 19,750 | $ 80,250 | $1,975 plus 12% of the excess over $19,750 |
| $ 80,250 | $171,050 | $9,235 plus 22% of the excess over $80,250 |
| $171,050 | $326,600 | $29,211 plus 24% of the excess over $171,050 |
| $326,600 | $414,700 | $66,543 plus 32% of the excess over $326,600 |
| $414,700 | $622,050 | $94,735 plus 35% of the excess over $414,700 |
| $622,050 | — | $167,307.50 plus 37% of the excess over $622,050 |
In: Accounting
In: Accounting
Compute the duration of a three-year bond, given an annual coupon of 7%, and a current market price of $900. What would be the maturity of a zero-coupon bond with the same duration? (Hint: remember to start with the IRR (YTM) calculation).
In: Finance
Suppose a firm is expected to increase dividends by 10% in one year and by 15% in year two. After that, dividends will increase at a rate of 7% per year indefinitely. If the last dividend was $2 and the required return is 12%, what is the price of the stock?
In: Finance
In: Finance
Cheeseburger and Taco Company purchases 17,886 boxes of cheese each year. It costs $20 to place and ship each order and $6.76 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.
In: Finance
Find the amount of each of 5 payments made at the end of each year into a 6% rate sinking fund which produces $21,000 at the end of 5 years.
A. $2,053.18
B. $3,514.46
C. $3,725.32
D. $4,200.00
In: Finance
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In: Finance
Suppose a firm is expected to increase dividends by 5% in one year and by 10% in year two. After that, dividends will increase at a rate of 4% per year indefinitely. If the last dividend was $4 and the required return is 10%, what is the price of the stock?
In: Finance