From the information given below, prepare a November income statement, a November statement of retained earnings, and a November 30 balance sheet. On November 1, of the current year, Garza Décor Inc. had a beginning retained earnings of $50,000. On November 30, records for Garza Décor Inc. showed the following items and amounts.

A company is trading in a fully depreciated old asset for a new one. Cost of the new asset is $5,000 with a 5 year life and straight-line depreciation will be used. The company receives a $500 allowance for the asset traded in. Additional sales revenue from the investment will be $2,100 and expenses of $400 (excluding depreciation). The company is in a 25% tax bracket. The payback period is:

a. 7.5 years

b. 8.33 years

c. 3.46 years

d. 2.95 years

34. Given the facts in question 53, the ARR is:

a. 17.8%

b. 23.3%

c. 8.9%

d. 8%

37. An increase in the price of Nike brand shoes will cause a decrease in the demand for Nike brand shoes.

Group of answer choices

True

False

38. If a cartel is successful, the group of firms will _______ output, charge a price that is _______, and total revenue will increase if the good sold has _______ demand.

Group of answer choices

increase, higher, inelastic

increase, lower, elastic

decrease, higher, elastic

decrease, lower, elastic

decrease, higher, inelastic

39. The average total cost curve passes through the minimum point of the marginal cost curve.

Group of answer choices

True

False

In 1987, Roy leased real estate to Drab Corporation for 20 years. Drab Corporation made significant capital improvements to the property. In 2006, Drab decides not to renew the lease and vacates the property. At that time, the value of the improvements is $800,000. Roy sells the real estate in 2018 for $1,200,000 of which $900,000 is attributable to the improvements. When is Roy taxed on the improvements made by Drab Corporation?

Lee, a citizen of Korea, is a resident of the U.S. Any rent income Lee receives from land he owns in Korea. Is that revenue (from Korea) subject to the U.S. income tax? Explain.

7. Tennis Town can manufacture tennis rackets for $39.75 each in variable raw material costs and $30.35 per racket in variable labor expense. The rackets sell for $180 each. Last year, production was 100,000 rackets. Fixed costs were $1,100,000. What were total production costs? What is the marginal cost per pair? What is the average cost? If the company is considering a one-time order for an extra 10,000, what is the minimum acceptable total revenue from the order. (10 Points)

Use excel and excel formulas

Suppose that Tomorrowland Speedway Incorporated is estimating cash flows for a new project.  The projections for the first year are as follows:

If the tax rate facing the firm is 34%, what is the project cash flow for the first year?

Question 11 options:

The following table shows a demand schedule facing a monopolist.

Quantity: 0    1   2   3   4   5   6   7   8   9  10

Prices:     25 25 24 23 22 21 20 19 18 17 16

The marginal cost of the production is always 13.00 and the profit maximizing output, average a total cost is $20.00

1. What is the profit maximizing (or loss minimizing) output for this?
2. What is the price at which that output will sell in the market?
3. Compute the total cost
4. Compute the total revenue
5. compute profit or loss at the maximizing output level

Draft a written memo to the client addressing the following research issues:

Merrill Lynch contacts you for guidance on this issue. Should the revenue be reported in 2017 or 2018 for financial statement reporting purposes? Why? Please site the specific guidance you followed in response to your research question. The primary issue you should research is whether an accrual basis securities firm has gross income under sec. 451(a) on the trading date or the next year on the settlement date when all the work is performed, payment is due, and money received

Horse Heaven Farm began 20X6 with cash of 180,000. During the year, Horse Heaven earned service revenue of 600,000 and collected 480,000 from customers. Expenses for the year totaled 330,000, with 300,000 paid in cash to suppliers and employees. Horse heaven also paid 138,000 to purchase equipment and a cash dividend of 47,000 to shareholders. During 20X6, Horse Heaven borrowed 25,000 by issuing a note payable. Prepare the company's statement of cash flows for the year. Format operating activities by the direct method. Calculate Horse's free cash flow and cash realization ratio.

On January 1, Year 1, Gibson Corporation purchased bonds issued by Williamson Company. These bonds were classified as held-to-maturity securities. The face value of these bonds is $200,000, pay 8% interest, and were purchased to yield 6%. The bonds mature in 10 years and pay interest on an annual basis. If Gibson Corporation paid $229,440 for these bonds, how much interest revenue should it report on the bonds at December 31, Year 1? Assume that Gibson used the effective interest method.

A) $22,944

B) $12,000

C) $16,000

D) $13,766