• Q : What is delta incom tax liability....
    Accounting Basics :

    What is Delta's incom tax liability assuming Carl withdraws none of the earnings from the C corporation? What is Carl's income tax liability? What is the total tax liability for the corporation and

  • Q : Contribution margin ratio will equal....
    Accounting Basics :

    Arnold Corp has a selling price of $20, variable costs of $15 per unit, and fixed costs of $25,000. If Arnold sells 12,000 units, the contribution margin ratio will equal :

  • Q : What is the best estimate of the stocks price per share....
    Accounting Basics :

    The balance sheet shows $20 million of short-term investments that are unrelated to operations, $50 million of accounts payable, $90 million of notes payable, $30 million of long-term debt, $40 mill

  • Q : Weighted average cost of capital basics....
    Accounting Basics :

    A company forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 13%, and the FCFs are expected to continue growing at a 5% rate after Year 3.

  • Q : What is quigley wacc....
    Accounting Basics :

    The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of common from retained earnings is 11.25%, and the tax rate is 40%. The firm will not be issuing any new common

  • Q : Nominal annual percentage cost....
    Accounting Basics :

    Your company has been offered credit terms of 4/30, net 90 days. What will be the nominal annual percentage cost of its nonfree trade credit if it pays 120 days after the purchase? (Assume a 365-day

  • Q : Determine the firm cash conversion cycle....
    Accounting Basics :

    Desai Inc. has the following data, in thousands. Assuming a 365-day year, what is the firm's cash conversion cycle? show your calculation.

  • Q : Declining real estate values in the area....
    Accounting Basics :

    Declining real estate values in the area indicate that the salvage value will be no more than $25,000.

  • Q : Tax consequences of the two distributions....
    Accounting Basics :

    What are the tax consequences of the two distributions made during the year to Martha (her stock basis is $74,000)?

  • Q : Adjustment for adjusted current earnings....
    Accounting Basics :

    Tanver Corporation, a calendar year corporation, has alternative minimum taxable income of $7 million in 2010 (before adjustment for adjusted current earnings). If Tanver's adjusted current earnings

  • Q : Bonds mature in ten years....
    Accounting Basics :

    On March 1, 2011, Pyne Furniture Co. issued $700,000 of 10 percent bonds to yield 8 percent. Interest is payable semiannually on February 28 and August 31. The bonds mature in ten years. Pyne Furnit

  • Q : What are the ethical issues involved....
    Accounting Basics :

    Since depreciation is included among the company's operating expenses, he wants to report the losses along with the company's expenses, where he hopes it will not be noticed. (a) What are the ethica

  • Q : Current ratio and fixed assets turnover ratio....
    Accounting Basics :

    How did this change effect the basic accounting method and the computation of the current ratio and fixed assets turnover ratio.

  • Q : How much of the passive loss can sage deduct....
    Accounting Basics :

    Sage, Inc., a closely held corporation that is not a PSC, has a $140,000 passive loss, $85,000 of active business income, and $35,000 of portfolio income. How much of the passive loss can Sage deduc

  • Q : Alternative minimum tax problem....
    Accounting Basics :

    Chev Corporation, a calendar year corporation, has alternative minimum taxable income (before any exemption) of $1.28 million for 2008. The company is not a small corporation. If the regular corpora

  • Q : Sages alternative minimum tax....
    Accounting Basics :

    Sage Corporation, a calendar year corporation, has alternative minimum taxable income (before any exemption) of $1,200,000 for 2010. The company is not a small corporation. If the regular corporate

  • Q : Cost of goods manufactured-goods inventory....
    Accounting Basics :

    Work-in-process inventory was $14,900 at January 1 and $16,700 at December 31. Finished goods inventory was $65,000 at January 1 and $58,300 at December 31.

  • Q : Accounts receivable turnover ratios for coca-cola wal-mart....
    Accounting Basics :

    Compute and compare the accounts receivable turnover ratios for Coca-Cola and Wal-Mart. Indicate all numbers you used to calculate the ratio.

  • Q : Expected present value of the cleanup provision....
    Accounting Basics :

    If you assume that these estimates are derived from best estimates of likely outcomes and the risk-free rate is 5%, the expected present value of the cleanup provision is what ??

  • Q : Intensive advertising campaign will double sales volume....
    Accounting Basics :

    The sales manager is confident that an intensive advertising campaign will double sales volume. If the company president's goal is to increase this month's profits by 50% over last month's, what is

  • Q : Record the purchase cost and date purchased....
    Accounting Basics :

    When Stillwater buys an item from a client, the owners want to record the purchase cost, date purchased, and condition at time of purchase.

  • Q : Amortize qualifying organizational expenses....
    Accounting Basics :

    If Saguaro Corporation makes a timely election under § 248 to amortize qualifying organizational expenses, how much may the corporation deduct for tax year 2008?

  • Q : Journalize the transactions-consulting business....
    Accounting Basics :

    John Smith started a consulting business and completed the following transactions during January 2011. Journalize the transactions. Explanations are not required.

  • Q : Amount of premium to be amortized....
    Accounting Basics :

    On January 1, 20x4, $50,000 of 20-year, 6 percent debentures were issued for $56,275.20. Interest payment dates on the bonds are January 1 and July 1. The amount of premium to be amortized on July 1

  • Q : What amount of liability for compensated absences....
    Accounting Basics :

    M estimated that there were 200 vacation days available at December 31, 2009. M's employees earn an average of $150 per day. In its December 31, 2009, balance sheet, what amount of liability for com

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