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Ashe and Barbour are partners with capital balances on January 1, 2011, of $40,000 and $50,000, respectively. The partnership agreement provides that each partner is allowed 10 percent interest on beginning capital balances; that Ashe receives a salary allowance of $12,000 per year and a 20 percent bonus of partnership income after interest, salary allowance, and bonus; and that remaining income is divided equally.
REQUIRED: Prepare an income distribution schedule to show how the $105,000 partnership net income for 2011 should be divided.
Compute the volume in units and the dollar sales level necessary to maintain the present profit level, assuming that the maximum price increase is implemented.
The machine has an estimated useful life of 6 years with a salvage value of $3,000. Determine the depreciation base of Cominsky"s new machine. Cominsky uses straight-line depreciation.
What is the firm's projected free cash flow for the year 2010 and what does the concept of free cash flow represent?
What is the goal of the EOQ model, why does a firm hold "safety stock - what costs are a firm trying to balance when it decides on how much safety stock to hold?
Evaluate the price would Crede charge to maximize revenues? and What price should Crede charge to maximize profits?
Do you think that Company Z cranked up production output to 2,500,000 units mainly to boost its operating profit for the year?
Submarine, Corp., earned net income of $110,000 for 2011. Submarine's books include the following figures: Preferred stock, 2%, $30 par, 1,000 shares issued and outstanding $30,000 Common stock, $1 par, $52,000 issued $52,000 Paid-in capital in e..
Evaluate the slope then explain what it means in terms of the rate of change of the dependent variable per unit change in the independent variable.
Cost-Volume-Profit Analysis
find the breakeven point in units for each product - The company's fixed costs are $2,040
The Ramon Company manufactures a wide range of products at several different plant locations. The Franklin plant, which manufactures electrical components, has been experiencing some difficulties with fluctuating monthly overhead costs.
What difference would it make if the homeowner expects to be in the home for only five more years?
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