Euclid acquires a 7-year class asset on May 9, 2018 for $80,000. Euclid does not elect immediate expensing under § 179- She does not claim any available additional first-year depreciation. Calculate Euclid’s cost recovery deduction for 2018 and 2019.
In: Accounting
Hamlet acquires a 7-year class asset on November 23, 2018, for $100,000. Hamlet does not elect immediate expensing under § 179- He does not claim any available additional first-year depreciation. Calculate Hamlet’s cost recovery deductions for 2018 and 2019.
In: Accounting
Eileen in Sara did not take any distributions for 2018. However they each have a guaranteed payment as a result of the capital they contributed. Eileen receives $10000 Sara receives $12000. What is the cost of goods sold for the bean buzz for 2018 in what is the amount for their ordinary income or loss?
In: Accounting
Question (2)
ABC Company purchased equipment at a cost of $120,000 on January 1, 2018 that it expects to be useful for four years, and to have a residual value of $8,000. The Company uses the Double-declining balance method for depreciation.
Required: Compute the Depreciation expense for each of 2018 and 2019.
In: Finance
Cypress Corporation, a calendar year end corporation, has an AMT credit carryforward from 2017 in the amount of $43,000. In 2018, Cypress has $170,000 of taxable income. What is the amount of refund Cypress can expect to receive from its 2018 tax return filing?
In: Finance
Chipper, a calendar-year corporation, purchased new machinery for $1,135,000 in February 2018. In October, it purchased $2,105,000 of used machinery. What was Chipper’s maximum cost recovery deduction for 2018?
Question 1 options:
1) $1,243,621
2) $3,240,000
3) $1,038,114
4) $577,226
In: Accounting
Income Stmt info: 2018 2019
Sales $1,000,000 $1,050,000
less Cost of Goods Sold: 400,000 432,000
Gross Profit 600,000 618,000
Operating Expenses 350,000 365,750
Earnings before Interest & Taxes 250,000 252,250
Interest exp 20,000 20,400
earnings before Taxes 230,000 231,850
Taxes 69,000 69,555
Net Income $161,000 $162,295
Balance Sheet info: 12/31/2018 12/31/2019
Cash 25,000 $30,000
Accounts Receivable 50,000 $54,000
Inventory 125,000 $130,000
Total Current Assets $200,000 $214,000
Fixed Assets (Net) $300,000 $318,000
Total Assets $500,000 $532,000
Current Liabilities $110,000 $119,900
Long Term Liabilities $180,000 $175,000
Total Liabilities $290,000 $294,900
Stockholder's Equity $210,000 $237,100
Total Liab & Equity: $500,000 $532,000
Compute each of the following ratios for 2018 and 2019 and indicate whether each ratio was getting "better" or "worse" from 2018 to 2019 and was "good" or "bad" compared to the Industry Avg in 2019 (round all numbers to 2 digits past the decimal place)
2018 2019 Getting Better or Getting Worse? 2019 Industry Avg "Good" or "Bad" compared to Industry Avg
Profit Margin 0.11
Current Ratio 1.90
Quick Ratio 0.66
Return on Assets .28
Debt to Assets .50
Receivables turnover 18.00
Avg. collection period* 15.50
Inventory Turnover** 9.25
Return on Equity 0.55
Times Interest Earned 13.20
*Assume a 360 day year **Inventory Turnover can be computed 2 different ways. Use the formula listed in the text (the one the text indicates many credit reporting agencies generally use)
In: Finance
Analyze the industry environment of Walmart in 2018
In: Operations Management