Homework Answers
Q1
First option is correct answer, income tax savings is not a cash outflow
Q2
Total amount after 5 yrs = 110000 + 110000 * 5 * 0.1 = 110000 + 55000 = 165000
Third option is correct answer
Q3
Total amount due after 5 yrs = 1000 * (1+ 0.1)^5 = 1000 * 1.1^5 = 1000*1.61051 = 1610.51 ~ 1611
Second option is correct answer
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All of the following are examples of cash outflows except: Income tax savings S Engineering and...
Prepare an income statement (ignoring income taxes) for Kissick Co.'s first year of operations and a balance sheet as of the end of the year. (Hint: You may find it helpful to prepare a T-account for the Cash account since it is affected by most of the tr
Issued 190,000 shares of $4-par-value common stock for $760,000 in cash.Borrowed $550,000 from Oglesby National Bank and signed a 10% note due in three years.Incurred and paid $390,000 in salaries for the year.Purchased $720,000 of merchandise inventory on account during the year.Sold inventory costing $580,000 for a total of $910,000, all on credit.Paid rent of $220,000 on the sales facilities during the first 11 months of the year.Purchased $170,000 of store equipment, paying $54,000 in cash and agreeing to pay...
Ch 03: Assignment- Financial Statements, Cash Flow, and Taxes Blue Hamster Manufacturing Inc.'s income statem...
Ch 03: Assignment- Financial Statements, Cash Flow, and Taxes Blue Hamster Manufacturing Inc.'s income statement reports data for its first year of operation. The firm's CEO would like sales to increase by 25% next vear 1. Blue Hamster is able to achieve this level of increased sales, but its interest costs increase from 10 % to 15% of eamings before interest and taxes (EBIT). 2. The company's operating costs (excluding depreciation and amortization) remain at 80 % of net sales,...
please show the work Thanks 12.10 An automobile costs $500 due at the time of purchase...
please show the work
Thanks
12.10 An automobile costs $500 due at the time of purchase plus twelve end-of-month payments of $2000 each. If the automobile will be kept for thirty months, then sold for $10,000. ad the owner's nominal annual minimum attractive rate of return is 6%, then the monthly equivalent cost of ownership is nearest: 12.11 To finance her new business, Juanita borrowed $150,000 at 12% interest to be repard in lien equal year-end installments. Her business is...
#10 Bond Homework Due Problem 199 A Challenging Cash Flow Problem- The following balances are from...
#10 Bond Homework Due Problem 199 A Challenging Cash Flow
Problem- The following balances are from the beginning of the year
for Sam's Town Company as of December 31 2018: EIE Celsa v /p Jutle
tlExp 5000 19,.000 5000 120,000 40,000 2,000 60,000 (3 junkets)
3,000 200,000 60,000 10,000 92,000 5,000 5,000 8,000 100,000 (0,000
60,000 101,000 Cash Accounts Receivable Allowance for Doubtful
Accts Inventory Prepaid Rent Equipment Accumulated Depreciation
Security Deposit Accounts Payable Wages Payable Interest Payable
Taxes Payable...
nix Wednesday TAX-4: Hanks Company The Hanks Company has the following income statement for the year...
nix Wednesday TAX-4: Hanks Company The Hanks Company has the following income statement for the year ended December 31, 2016: Subscription revenue Interest revenue on municipal bonds Total revenues $250,000 4.500 254,500 Expenses: Subscription costs Wages Rent expense Depreciation on equipment Insurance expense Total expenses Income before tax 120,000 30.000 15,000 45,000 8,000 218.000 36,500 Hanks Company has the following partially completed comparative balance sheets as of December 31: 2016 2015 $ 92,775 19.250 3,000 2,500 $ 10,000 19,250 2.800...
On the designated worksheet, prepare in journal entry form all adjusting and correcting journal entries based...
On the designated worksheet, prepare in journal entry form all adjusting and correcting journal entries based on the following information (round all numbers to the nearest dollar). Letter entries to correspond to the below information and present them in alphabetical order. Add any new accounts as needed to the trial balance. Each entry must be entirely correct to receive allocated points. Before preparing entries, finish the story by filling in the blanks. Accounting Creations was authorized to issue 3,000,000 shares...
of the payment, and (b) the amount of interest? what was the amount of the original...
of the payment, and (b) the amount of interest? what was the amount of the original loan? 1.19 A medium-size consulting engineering firm is try-1.28 A start-up company with multiple nanotechnology ing to decide whether it should remodel its office now or wait and do it one year from now. If the firm does it now, the cost will be $38,000. The interest rate is 10% per year. a. What would the cost have to be one year from products...
164 PART 3 Valuation of Future Cash Flows CHAPTER CASE S&S Air's Mortgage M ark Sexton...
164 PART 3 Valuation of Future Cash Flows CHAPTER CASE S&S Air's Mortgage M ark Sexton and Todd Story, the owners of S&S Air, Inc., IV Iwere impressed by the work Chris had done on finan- cial planning. Using Chris's analysis, and looking at the de- mand for light aircraft, they have decided that their existing fabrication equipment is sufficient, but it is time to acquire a bigger manufacturing facility. Mark and Todd have identi- fied a suitable structure that...
S&S Air’s Mortgage ark Sexton and Todd Story, the owners of S&S Air, Inc., greatest Interest...
S&S Air’s Mortgage ark Sexton and Todd Story, the owners of S&S Air, Inc., greatest Interest savings. At Todd's prompting, she goes IV Iwere impressed by the work Chris had done on finan on to explain a bullet loan. The monthly payments of a clal planning. Using Chris's analysis, and looking at the de bullet loan would be calculated using a 30-year tradi- mand for light alrcraft, they have decided that their existing tional mortgage. In this case, there would...
Required Information [The following information applies to the questions displayed below.] Pastina Company sells various types...
Required Information [The following information applies to the questions displayed below.] Pastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021. appears below. Credits Debits 35,500 43,90 3.ee 63,000 23.000 2. See 9,690 92,000 34,5ee 34,99 53,690 Account Title Cash Accounts receivable Supplies Inventory Notes receivable Interest receivable Prepaid rent Prepaid insurance Office equipment Accumulated depreciation Accounts payable Salaries payable...
Ch 03: Assignment- Financial Statements, Cash Flow, and Taxes Blue Hamster Manufacturing Inc.'s income statement reports data for its first year of operation. The firm's CEO would like sales to increase by 25% next vear 1. Blue Hamster is able to achieve this level of increased sales, but its interest costs increase from 10 % to 15% of eamings before interest and taxes (EBIT). 2. The company's operating costs (excluding depreciation and amortization) remain at 80 % of net sales,...
please show the work
Thanks
12.10 An automobile costs $500 due at the time of purchase plus twelve end-of-month payments of $2000 each. If the automobile will be kept for thirty months, then sold for $10,000. ad the owner's nominal annual minimum attractive rate of return is 6%, then the monthly equivalent cost of ownership is nearest: 12.11 To finance her new business, Juanita borrowed $150,000 at 12% interest to be repard in lien equal year-end installments. Her business is...
#10 Bond Homework Due Problem 199 A Challenging Cash Flow
Problem- The following balances are from the beginning of the year
for Sam's Town Company as of December 31 2018: EIE Celsa v /p Jutle
tlExp 5000 19,.000 5000 120,000 40,000 2,000 60,000 (3 junkets)
3,000 200,000 60,000 10,000 92,000 5,000 5,000 8,000 100,000 (0,000
60,000 101,000 Cash Accounts Receivable Allowance for Doubtful
Accts Inventory Prepaid Rent Equipment Accumulated Depreciation
Security Deposit Accounts Payable Wages Payable Interest Payable
Taxes Payable...
nix Wednesday TAX-4: Hanks Company The Hanks Company has the following income statement for the year ended December 31, 2016: Subscription revenue Interest revenue on municipal bonds Total revenues $250,000 4.500 254,500 Expenses: Subscription costs Wages Rent expense Depreciation on equipment Insurance expense Total expenses Income before tax 120,000 30.000 15,000 45,000 8,000 218.000 36,500 Hanks Company has the following partially completed comparative balance sheets as of December 31: 2016 2015 $ 92,775 19.250 3,000 2,500 $ 10,000 19,250 2.800...
of the payment, and (b) the amount of interest? what was the amount of the original loan? 1.19 A medium-size consulting engineering firm is try-1.28 A start-up company with multiple nanotechnology ing to decide whether it should remodel its office now or wait and do it one year from now. If the firm does it now, the cost will be $38,000. The interest rate is 10% per year. a. What would the cost have to be one year from products...
164 PART 3 Valuation of Future Cash Flows CHAPTER CASE S&S Air's Mortgage M ark Sexton and Todd Story, the owners of S&S Air, Inc., IV Iwere impressed by the work Chris had done on finan- cial planning. Using Chris's analysis, and looking at the de- mand for light aircraft, they have decided that their existing fabrication equipment is sufficient, but it is time to acquire a bigger manufacturing facility. Mark and Todd have identi- fied a suitable structure that...
S&S Air’s Mortgage ark Sexton and Todd Story, the owners of S&S Air, Inc., greatest Interest savings. At Todd's prompting, she goes IV Iwere impressed by the work Chris had done on finan on to explain a bullet loan. The monthly payments of a clal planning. Using Chris's analysis, and looking at the de bullet loan would be calculated using a 30-year tradi- mand for light alrcraft, they have decided that their existing tional mortgage. In this case, there would...
Required Information [The following information applies to the questions displayed below.] Pastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021. appears below. Credits Debits 35,500 43,90 3.ee 63,000 23.000 2. See 9,690 92,000 34,5ee 34,99 53,690 Account Title Cash Accounts receivable Supplies Inventory Notes receivable Interest receivable Prepaid rent Prepaid insurance Office equipment Accumulated depreciation Accounts payable Salaries payable...
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