A dollar today is worth more than a dollar to be received in the future. The difference between the present value of cash flows and their future value represents the time value of money. Interest is the rent paid for the use of money over time. The Stridewell Wholesale Shoe Company recently sold a large order of shoes to Harmon Sporting Goods. Terms of the sale require Harmon to sign a noninterest-bearing note of $60,500 with payment due in two years. How should Stridewell and Harmon value the note receivable/payable and corresponding sales revenue/inventory? Justify your answer.

Consider an asset with the cost basis of $500,000, useful life of 5 years and salvage value of 10,000 at the end of its useful life. This asset generates yearly revenue of $275,000 and its operating cost is $55,000 per year. Average inflation rate is estimated to be 4% over the next 5 years.

Calculate tax saving in year 2 due to depreciation; if the double declining method is used for depreciation (tax rate is 30%).

(Report your answer in dollar amounts without any extra character. Answers such as 2Million; 2M; 2,000,000 or $2000000 are not acceptable)

The adjusted trial balance of Pacific Scientific Corporation on December 31, 2017, the end of the company's fiscal year, contained the following income statement items ($ in millions): sales revenue, $2284; cost of goods sold, $1328; selling expenses, $160; general and administrative expenses, $299; interest expense, $60; and gain on sale of investments, $68. Income tax expense has not yet been accrued. The income tax rate is 40%. Determine the amount would appear in a multi-step income statement for net income (loss). Answer in dollars and cents ($ 0.00 ).

David Bash's Landscaping Company has the following list of assets, liabilities, revenues and expenses on December 31, 2016, which is the end of its first year of operations:

Common stock $40,400

Accounts payable 5,000

Salary expense 15,000

Repairs expense     2,200

Dividends       10,000

Truck    24,000

Equipment     22,200

Notes payable 12,800

Cash   60,400

Supplies expense 5,400

Service revenue 77,200

Gasoline expense 2,200

The stockholders' equity for David Bash's Landscaping on December 31, 2016 is:

Video on How would Markets Respond to Zombie

Respond to the questions

1.Should a business owner lower the prices if they want to generate additional revenue? Explain and provide an example. (use different example than in the video).

2. How do we measure elasticity?

3. If the absolute value of the elasticity of demand is less than 1, would you rise the price or lower the price? Provide an example (different than in the video)

4. After watching Zombies clip- what economics concepts were you thinking about? Give an example.

Southern Corporation began operations in January 2019 and purchased a machine for $120,000 at that time. Southern uses straight-line depreciation over a four-year period for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2019, 30% in 2020, and 20% in 2021. Pretax accounting income for 2020 – which is the SECOND year of using this machine – is $150,000, which includes interest revenue of $20,000 from municipal bonds. The enacted tax rate is 30% for all years. There are no other differences between accounting and taxable income.

Prepare the JE for 2020

Financial information for two companies are presented below.

Fill in the missing amounts.

eTextbook and Media

List of Accounts

Calculate the profit margin and the gross profit rate for each company. (Round answers to 1 decimal place, e.g. 15.5%.)

Boxcom Company had a total bi-weekly payroll of $ 90,000. The entire payroll was subject to CPP (4.95%), EI (1.66%), and income tax withholdings of $ 11,880. Union dues of $ 1,125 and Health insurance premiums of $ 2,850 were also withheld. Boxcom will match employee CPP and 1.4 times employees EI

Instructions                                            

1. Prepare the journal entries to record the employee wages/salaries and payroll deductions
2. Prepare the journal entries to record the employer payroll contributions   
3. Prepare the journal entries to record the remittance to the Receiver General (Canada Revenue Agency)

"A firm is considering purchasing a computer system. The following data has been collected.
- Cost of the system: $180,000
- Project life: 6 years
- Salvage value at the end of year 6: $14,000
- Depreciation method: five-year MACRS
- Tax rate: 21%
- Annual revenue from project: $148,000
- Annual expenses (not including depreciation): $93,000
The firm will borrow the entire $180,000 at 6.4% interest to be repaid in 2 annual payments.
The firm's MARR is 15%. Determine the IRR for the computer system. Enter your answer as a percentage rounded to the nearest tenth of a percent."

Suppose BO company uses the indirect method to prepare the cash flow statement. Indicate which of the following items will appear in the cash flow from operating activities section of the cash flow statement. [Tick all that apply].