Broussard Skateboard's sales are expected to increase by 20% from $9.0 million in 2016 to $10.80 million in 2017. Its assets totaled $2 million at the end of 2016. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2016, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 5%, and the forecasted payout ratio is 70%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Round your answer to the nearest dollar. Do not round intermediate calculations.
In: Finance
Broussard Skateboard's sales are expected to increase by 20% from $8.0 million in 2016 to $9.60 million in 2017. Its assets totaled $2 million at the end of 2016. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2016, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 6%, and the forecasted payout ratio is 75%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Round your answer to the nearest dollar. Do not round intermediate calculations.
In: Finance
Zeno Inc. sold two capital assets in 2020. The first sale resulted in a $53,000 capital loss, and the second sale resulted in a $25,600 capital gain. Zeno was incorporated in 2016, and its tax records provide the following information:
2016 2017 2018 2019
Ordinary income $443,000 $509,700 $810,300 $921,000
Net capital gain 22,000 0 4,120 13,600
Taxable income $465,000 $509,700 $814,420 $934,600
Required: Compute Zeno’s tax refund from the carryback of its 2020 nondeductible capital loss. Assume Zeno’s marginal tax rate was 34 percent in 2016 and 2017, and 21 percent in 2018 and 2019.
In: Accounting
On January 1, 2015, ECT Co. adopted the dollar-value LIFO method for its one inventory pool. The pool's value on this date was $500 million. The 2015 and 2016 ending inventory valued at year-end costs were $702 million and $840 million, respectively. The appropriate cost indexes are 1.12 for 2015 and 1.18 for 2016
41
Calculate the inventory balance that ECT Co. would report on its year-end balance sheets for 2015 using the dollar-value LIFO method
42
Calculate the inventory balance that ECT Co. would report on its year-end balance sheets for 2016 using the dollar-value LIFO method
In: Accounting
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On December 31, 2016, Ditka Inc. had Retained Earnings of $279,800 before its closing entries were prepared and posted. During 2016, the company had service revenue of $180,100 and interest revenue of $87,300. The company used supplies in the amount of $93,900, advertising expenses were $17,600, salaries and wages totaled $20,100, and income tax expense was calculated as $16,100. During the year, the company declared and paid dividends of $7,200. |
| Required: |
| a. | Prepare the closing entries dated December 31, 2016. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) |
| b. |
Prepare T-account for the Retained Earnings account. |
In: Accounting
Fill in 7 blanks in the following table and interpret your results. Show your calculations and units of account.
Year | Real GDP (National Income), $ | Consumption, $ | Saving, $ | Marginal Propensity to Consume | Marginal Propensity to Save |
2015 | 9,000 | 8,000 | --------- | --------- | |
2016 | 10,000 | 8,600 | |||
2017 | 12,000 | 9,300 |
Calculations:
Fill in the blanks using your answers in part a):
Answer:
In 2016, out of each $1 of additional income (real GDP) a country spent____________, while saved the rest_____________.
Fill in the blanks using your answers in parts a) and b):
Answer:
If in 2016 this country’s real national income went up by $3,800, the consumption spending went up by__________%,which is equivalent to$____________.
In: Economics
A. Record the 1/1/14 transaction for fishbone corporation and all necessary entries from 2014-2016.
B. Record the 1/1/14 transaction for Lost Company and all necessary entries from 2014-2016.
Please do a step by step on how and why you got your answer, thank you!!!
In: Accounting
Braxton Co. borrowed $65,000 from the bank on October 1, 2015. The note had an 4.5 percent annual rate of interest and matured on March 31, 2016. Interest and principal will be paid in cash on the maturity date.
Required:
A. What amount of cash did Braxton Co. pay for interest in 2015?
B. What amount of interest expense was reported on the 2015 income statement?
C. What is the total liabilities reported on the December 31, 2015, balance sheet? (Consider the note and the interest)
D. What is the total cash paid to the bank on March 31, 2016 for principal and interest?
E. What amount of interest expense will be reported on the 2016 income statement?
In: Accounting
On January 2, 2016, Prebish corporation issued $1,500,000 of 10% bonds to yield 11% due December 31, 2025. Interest on the bonds is payable annually each December 31. The bonds are callable at 101 ( at 101% of face amount), and on January 2, 2019, Prebish called $1,000,000 face amount of the bonds and retired them
A. Determine the price of the Prebish bonds when issued on Janurary 2, 2016?
B. Prepare an amortization schedule for 2016-2020 for the bonds?
C. Ingoring income tax, compute the amount of loss, if any, to be recongized by Prebish as an result of retiring the $1,000,000 of bonds on Janurary 2, 2019, and prepare the journal entry to record the retirement?
In: Accounting
Broussard Skateboard's sales are expected to increase by 20% from $7.6 million in 2016 to $9.12 million in 2017. Its assets totaled $5 million at the end of 2016. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2016, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 3%, and the forecasted payout ratio is 60%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Round your answer to the nearest dollar. Do not round intermediate calculations.
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In: Finance