Answer:
(a) Option (A) is correct.
(b) Option (A) is correct.
Explanation:
Given that,
With the new SUV launch,
Generate operating losses = $35 million next year
Without the new SUV,
Expects to earn pre-tax income = $80 million from operations next year
Tax rate on its pre-tax income = 30%
(a) The amount that Ford Motor Company owe in taxes next year without the launch of the new SUV is closest to:
= Expected pre-tax income × Tax rate on its pre-tax income
= $80 Million × 30%
= $24 Million
(b) The amount that Ford Motor Company owe in taxes next year with the launch of the new SUV is closest to:
= ( Expected pre-tax income - operating losses) × Tax rate on its pre-tax income
= ($80 Million - 35 Million) 30%
= $13.5 Million
If Ford does not launch the new Plug-in Electric SUV, it will owe $24 million in taxes. However, if the new SUV is launched, its tax obligation decreases to $13.5 million due to the operating losses reducing pre-tax income.
If Ford Motor Company does not launch the new SUV, its pre-tax income would be $80 million. Given that the tax rate is 30%, the taxes owed would be 30% of $80 million, which equals $24 million, so the correct answer is option A) $24.0 million.
However, if the company does decide to launch the new SUV, it would incur operating losses of $35 million. This would reduce the pre-tax income to $80 million - $35 million, which is $45 million. The taxes would then be 30% of $45 million, which equals $13.5 million, so for this scenario, the correct answer is D) $13.5 million.
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Answer: D. $480,000.
Explanation: OCF ( operating cash flow) is usually calculated using the following formula: Operating Cash Flows = Net income + Noncash Expenses ( Depreciation Expense) + Changes in Working Capital.
Net income =$380,000
Depreciation = $70,000
Increase in accounts = $30,000
OCF = $380,000 + $70,000 + $30,000
= $480,000
Answer:
Cashflow statement gives the true state of affairs of a business with respect to cash and cash equivalent. Whereas a company may report good profit, it may be running an unhealthy business because of its poor management of cash resources. As a result, such a business may run into troubles.
Cash from operating Activities is a healthy way of evaluating the core operations of the business, to make good investment judgment around the profit reported.
Net Income = $380,000
Add Depreciation (non- cash expense) = $70,000
Deduct Increase in Accounts receivables (non-cash income) = $30,000
Cash from operations = $420,000.
contractionary fiscal policy, which includes a reduction in government spending by more than $500 million.
contractionary fiscal policy, which includes a reduction in government spending by less than $500 million.
expansionary fiscal policy, which includes an increase in government spending by $500 million.
expansionary fiscal policy, which includes an increase in government spending by more than $500 million.
expansionary fiscal policy, which includes an increase in government spending by less than $500 million.
Answer:
The correct answer is the first option: contractionary fiscal policy, which includes a reduction in government spending by $500 million.
Explanation:
On one hand, Gross Domestic Product, or GDP, is the name given in the field of economics, to the term that refers to a monetary measure of the market value of all the goods and services that are produced in the economy of a country in an specific time period of evaluation.
On the other hand, a contractionary fiscal policy indicates the fact of reducing the amount of money spent in the economy, therefore that the main focus of this type of policy is to try to lower the public expenditure basically.
Therefore that it is understandable that the correct answer is the first option where the action would be of reducing the government spending by $500 million, according to what the question ask.
Answer:
admiration ????
Explanation:
Cost-volume-profit analysis.
Least-squares regression analysis.
Variance analysis.
Process costing.
Answer:
Cost volume profit Analysis
Explanation:
Cost volume profit Analysis is a tool which depicts the relationship between level of activity, revenue , cost and profit. It is an important tool adopted by accountants to help carry out any of the following analyses:
Break-even point - The level of activity to achieve a zero profit. Where no profit or loss is made .
Target profit Analysis; The level of activity to be that would he;p achieve a specific amount of profit
Margin of safety - To determine the amount by which budgeted sales exceeds the break-even sales
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
The diluted earnings per share for Garfun, Inc. considering the income and preferred dividends, the income from Simon, Inc. given the tax rate, and the potentially diluted convertible bonds from Simon, Inc., it comes out to be $6.58.
Calculating diluted earnings per share (EPS) involves accounting for any securities or methods that could potentially dilute the EPS, such cy as convertible bonds. In this scenario for Garfun, Inc., first, we need to address Garfun's net income (exclusive of investment income). This is given as $480,000. However, they pay preferred dividends of $15,000, which are subtracted from net income when calculating EPS, so we’ll use $465,000 as the income available to common stockholders.
Moving on to Simon, Inc., as Garfun owns all of the stock of Simon, the earnings of Simon will fully contribute to the diluted earnings of Garfun. Taking the reported net income of Simon ($290,000) and adjusting for the 30% tax rate, we get $203,000.
Furthermore, the potentially dilutive securities are the convertible bonds from Simon, Inc. These bonds can be converted into 30,000 shares of common stock ($100 bonds * 3). The interest paid for these convertible bonds, $80,000, is added back to the net income after being adjusted for the tax rate of 30% which is $56,000.
The total of earnings available for common stockholders for the diluted EPS calculation is, therefore $724,000 ($465,000 of Garfun’s net income + $203,000 of Simon’s net income + $56,000 interest on Simon’s bonds adjusted for tax). We also need to account for all the common stocks where earnings will be distributed. This amounts to 110,000 shares (80,000 of Garfun’s shares + 30,000 shares of Simon’s bonds). Hence, the diluted EPS is $6.58 ($724,000 / 110,000).
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Answer:
A self-fulfilling prophecy.
Explanation:
A self-fulfilling prophecy -
It is the socio psychological phenomenon ,
According to the prediction is something which is person truly believes , and at last comes out to be true , is referred to as a self - fulfilling prophecy .
The action of the people is directly linked to their beliefs , i.e. , whatever is the belief of the people , the same is showcased in the action of the person.
Hence , from the given scenario of the question,
The correct term is A self-fulfilling prophecy.