According to projections for 2016 by the Tax Policy Center, the 20 percent of U.S. taxpayers who make the highest incomes

3. Non-interest bearing note

On June 30, 2016, the Esquire Company sold some merchandise to a customer for $30,000 and agreed to accept as payment a noninterest-bearing note with an 8% discount rate requiring the payment of $30,000 on March 31, 2017. The 8% rate is appropriate in this situation.

Required:

Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2016 interest accrual, and the March 31, 2017 collection.

What is the effective interest rate on the note?

​(Related to Checkpoint​ 4.3) ​(Analyzing Profitability) In​ 2016, the Allen Corporation had sales of $68 ​million, total assets of ​$43 million, and total liabilities of $16 million. The interest rate on the​ company's debt is ​5.5 percent, and its tax rate is 35 percent. The operating profit margin is 12 percent.

a. Compute the​ firm's 2016 net operating income and net income.

b. Calculate the​ firm's operating return on assets and return on equity.​ (Hint: You can assume that interest must be paid on all of the​ firm's liabilities.)

DETROIT (Y) ANN ARBOR (X)

2008       59                           2008       61

2009       60                           2009       58

2010       61                           2010       60

2011       69                           2011       68

2012       66                           2012       67

2013       62                           2013       64

2014       64                           2014       66

2015       71                           2015       70

2016       69                           2016       72

2017       66                           2017       64

h₀  :There is a statistical correlation between the temperatures in two different Michigan cities.

What relationships exist between the data sets? Are they significant and why?

Cost of Goods Sold, Profit margin, and Net Income for a Manufacturing Company

The following information is available for Gonzalez Manufacturing Company for the month ending July 31, 2016:

For the month ended July 31, 2016, determine Gonzalez's (a) cost of goods sold, (b) gross profit, and (c) net income.

Baxter International Inc. free cash flow from 2016 was a positive $2,606,000,000 and in 2017 was a negative $2,348,000,000. What inference can you draw from the companies' free cash flow for both years. Please explain your rationale for your answer.

Exxon Mobil Corp. free cash flow from 2016 was a positive $64,138,000,000 and in 2017 was a positive $52,533,000,000. What inference can you draw from the companies' free cash flow for both years. Please explain your rationale for your answer.

Stuart Company had Net Income for 2017 of $8,100,000. The firm invested $1,000,000 in manufacturing equipment during 2016 but made no additional capital investments in 2017. The equipment is being depreciated over five years using straight-line depreciation, starting in 2016. Assuming no other adjustments to cash flow than those mentioned here, create a statement of cash flows for 2017 with amounts in thousands. What is the Net Cash Flow in 2017? Please specify your answer in the same units as the statement of cash flows

Baron Company adopted a defined benefit pension plan on January 1, 2015. The following information pertains to the pension plan for 2016 and 2017:

There are no other components of Baron’s pension expense.