A project will produce cash inflows of $1,750 a year for four years. The project initially costs $10,600 to get started. In year five, the project will be closed and as a result should produce a cash inflow of $8,500. What is the net present value of this project if the required rate of return is 14.75%?

Please add the explanation.

6. Killnum Corp. announces that the dividend for the next year will be $2.50 per share rather than the originally expected $1.50 per share. From then on, it is expected that dividends will resume their historical constant growth rate of 5% per year. What would you expect to happen to the price of the stock? Ignore any tax effects.

A) The price will likely double.

B) The price will likely rise by less than 100%.

C) The price will likely rise by exactly 50%.

D) The price will remain unchanged.

E) The price will likely rise by the present value of $1.

John Smith previously earned £ 10,000 a year in employment and had £ 100,000 invested in government securities, yielding 10% per annum. He sold his securities for £ 100,000 and started his own business. Initially, he rented a factory for £ 5000 per annum, but subsequently purchased it for £ 20,000, leaving £ 80,000 as the financial capital within the firm. John Smith’s accountants estimate that total revenue of the firm in the past year was £ 100,000 and total costs were £ 80,000, including a salary of £ 5000 paid to John Smith.

Estimate the profit of this firm from the viewpoint of (i) The accountant (ii) The economist, explaining clearly the reason for any difference. [15 marks]

Question

Jack is performing the audit on leases of Anglo Ltd for the year ended 31 December 2019. From the ledger, Jack noticed that there are three items, which are on the lease, i.e. a van, a lathe machine and the oven. As part of the audit, Jack would send standard confirmation letters to the lessors. Two days before the end of the fieldwork,Jack received confirmation from the van’s lessor. Jack’s client has had a short payment of the van lease by$10,000. Jack sent the second reminder confirmation and managed to receive the confirmation from the lathemachine’s lessor. The lease would only start from 1 January 2020. Jack has to yet to receive any confirmationpertaining to the leasing of the oven.

Requirements:

a)Suggest three (3) actions/procedures that Jack should take in the future to make sure that the confirmation letter will be received and answered promptly.
b)Propose two (2) further actions/procedures that Jack should take for the discrepancies to two of the items listed above.

The Rogers Company uses a standard cost accounting system and estimates production for the year to be 60,000 units. At this volume, the company's variable overhead costs are $0.50 per direct labor hour.

The company's single product has a standard cost of $30.00 per unit. Included in the $30.00 is $13.20 for direct materials (3 yards) and $12.00 of direct labor (2 hours). Production information for the month of March follows:

Required:

(Be sure to indicate whether the variances are favorable or unfavorable and show your work.)

1. Compute the direct material price variance.
2. Compute the direct material efficiency variance.
3. Compute the direct labor price (rate) variance.
4. Compute the direct labor efficiency variance.

The following information was taken from the records of Skysong Inc. for the year 2017: Income tax applicable to income from continuing operations $213,724; income tax applicable to loss on discontinued operations $28,186, and unrealized holding gain on available-for-sale securities (net of tax) $23,100. Gain on sale of equipment $97,400 Cash dividends declared $153,000 Loss on discontinued operations 82,900 Retained earnings January 1, 2017 542,500 Administrative expenses 246,100 Cost of goods sold 894,100 Rent revenue 42,300 Selling expenses 322,400 Loss on write-down of inventory 61,700 Sales Revenue 2,013,200 Shares outstanding during 2017 were 90,400.

(1) Prepare a multiple-step income statement.

(2) Prepare a retained earnings statement for 2017.

IMTU Corporation (it stand for " Made This Up") had sales last year of $5,500,000. They sell heat shields to place on your lap for stupid McD's customers who insist on placing a cup of hot coffee between their legs. The materials cost $100,000 (that's good) but the labor to put them together costs $1,850,000 (yes they are union and yes the company is looking to move this operation "off-shore" next year but that's beyond the scope of this course). Advertising was just $80,000, as they mostly use word-of-mouth. They did need to raise some money this year. The bank loaned them $250,000 at 6% (that interest is due this year). The interest didn't worry them too much as it was partly off-set by the dividend check they received from McDonalds for $12,000 (hmmmmm - I wonder if there is a conflict of interest here?) Anyway, all things considered, "it was a very good year" so much so they paid their loyal shareholders $65,000 in common stock dividends. OK, given all that, what was their Federal tax bill?

Group of answer choices

Sales = $5,500,000

COGS = 100,000+1,850,000 = 1,950,000

Gross Profit = $3,550,000

Advertising = $80,000

Interest on the loan = $18,000

Income reported on dividends is only 20% due to exclusion. So reported is $1,600.

$3,550,000-80,000-15,000 = $4,455,000

$4,455,000+$3,600 = $4,458,600.

Federal taxable income is $4,458,600.

The actual taxes paid are $2,175,924

Sales = $5,500,000

COGS = 80,000+750,000 = 830,000

Gross Profit = $170,000

Advertising = $80,000

Interest on the loan = $12,000

170,000-50,000-12,000 = 108,000

Federal taxable income is $108,000

The actual taxes paid are $23,306.

Sales = $5,500,000

COGS = 100,000+1,850,000 = 1,950,000

Gross Profit = $3,550,000

Advertising = $80,000

Interest on the loan = $15,000

Income reported on dividends is only 30% due to exclusion. So reported is $3,600.

$3,550,000-80,000-15,000 = $3,455,000

$3,455,000+$3,600 = $3,458,600.

Federal taxable income is $3,458,600.

The actual taxes paid are $1,175,924

Sales = $5,500,000

COGS = 100,000+1,750,000 = 1,750,000

Gross Profit = $3,550,000

Advertising = $80,000

Interest on the loan = $17,000

Income reported on dividends is only 30% due to exclusion. So reported is $2,600.

$3,550,000-80,000-15,000 = $3,455,000

$3,455,000+$2,600 = $1,458,600.

Federal taxable income is $3,458,600.

The actual taxes paid are $1,175,924

Assume that Denis Savard Inc. has the following accounts at the end of the current year.

Prepare a classified balance sheet in good form. (List Current Assets in order of liquidity. For Land, Treasury Stock, Notes Payable, Preferred Stock Investments, Notes Receivable, Receivables-Officers, Inventory, Bonds Payable, and Restricted Cash, enter the account name only and do not provide the descriptive information provided in the question.)

show work and explain, especially total liabilities and equity

If a corporation’s tax return shows taxable income of $104,000 for Year 2 and a tax rate of 40%, how much will appear on the December 31, Year 2, balance sheet for “Income taxes payable” if the company has made estimated tax payments of $35,900 for Year 2?

Event 1: record entry for issuance of common stock

Event 2: record purchase of equipment for cash

Event 3: record cash received from revenue

Event 4: record cash paid for salaries expenses

Event 5: record depreciation expense

b. Then post them to T-accounts.

c.