Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
How would you select an organizational form for a business? Think about this question as you read the following scenario.
Joe Jones has created a business plan for a new product. He is not certain whether to organize his business as a regular corporation or a sole proprietorship. The following are his forecasted partial financial statements for the first four years of operation of the new venture named Uncle Joe's.
Forecasted partial Income Statement:
Year 1
Year 2
Year 3
Year 4
Sales
$15,000
$18,000
$23,400
$44,460
Cost of goods sold
8,000
10,000
15,000
21,000
Gross profit
7,000
8,400
23,460
Operating expenses
3,000
4,500
4,900
12,000
Interest
800
1,800
2,100
4,100
Earnings before taxes
2,200
2,700
2,800
7,900
Taxes
?
Net Income
Forecasted Balance Sheet:
Cash and inventories
$30,000
$45,000
$67,500
$101,250
Building and equipment
25,000
32,500
42,250
54,925
Total assets
55,000
77,500
109,750
156,175
Corporate Income Tax Schedule:
Taxable Income
Marginal Tax Rate
$1-30,000
10%
30,001-100,000
18
100,001-400,000
23
400,001-5,000,000
30
Over 5,000,000
40
Personal Income Tax Schedule:
$1-5,000
8%
5,001-20,000
12
20,001-60,000
19
60,001-180,000
25
Over 180,000
33
Using the information on Uncle Joes' finances, answer the following questions:
Do you recommend that Joe form a corporation or a sole proprietorship? Justify your answer
Mardist Corporation has sales of USD100,000, variable expenses of USD75,000, fixed expenses of USD30,000, and a net loss of USD5,000. How much would Mardist have to sell to achieve a profit of 10% of sales?
Explain to management why monitoring and managing the cash conversion cycle is important to the overall profitability of the company.
question 1the current selling price is 90 per unit and variable expenses are 60 per unit. fixed expenses are 810000 per
in working out your responses to the discussion question you should choose examples from your own experience or find
Calculate Coffee Mill's Cash Conversion Cycle. If Coffee Mill were to shorten its inventory conversion period by 10 days, what effect would this have on the Cash Conversion Cycle? What effect (in dollars) would (b) have on Coffee Mill's total worki..
Calculate the Manufacturing Overhead balance at the end of the year and the journal entry to clear this amount if necessary.
What is the break-even point in boxes of candy for the company under the existing situation? What selling price per box must the company charge to cover the 15% increase in the cost of the raw materials i.e., candy, and still maintain the current c..
The above costs include all of the costs of the restaurant except for organization-sustaining costs such as rent, property taxes, and top-management salaries.
Contrast the 3 major classes of tax bases, also addressing economic bases. Examine various methods of government financing in their budget, and give a synthesis of the strengths and weaknesses of these methods, as well as their long term effects.
Suppose you have just started a business to manufacture your newest invention, the photon gismo. Let's say you believe that after a few years on the market, photon gismos will sell for about $125.
for the last few decades many have proposed that businesses cannot solely be measured on financial statements alone.
Under the Texas Disciplinary Rules of Professional Conduct, may a lawyer refuse a former client's request to disclose or turn over the lawyer's notes made in the course of and in furtherance of his representation of the client?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd