If the Accounts Receivable debit balance totals $10,000, and the Allowance for Bad Debts credit balance is $200, the net receivables of the business will total $10,200
Indicate whether the statement is true or false
false
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Orange Inc., the Cupertino-based computer manufacturer, has developed a new all-in-one device: phone, music-player, camera, GPS, and computer
The device is called the iPip. The following data have been collected regarding the iPip project. The company has identified a prime piece of real estate and must purchase it immediately for $100,000. In addition, R&D expenditures of $175,000 must be made immediately. During the first year the manufacturing plant will be constructed. The plant will be ready for operation at the end of Year 1. The construction costs are $500,000 and will be paid upon completion. At the end of the Year 1, an inventory of raw materials will be purchased costing $50,000. Production and sales will occur during years 2 and 3. (Assume that all revenues and operating expenses are received (paid) at the end of each year.) Annual revenues are expected to be $850,000. Fixed operating expenses are $100,000 per year and variable operating expenses are 25% of sales. The construction facilities are classified as 10-year property for tax-depreciation purposes. When the plant is closed it will be sold for $200,000. (Note: Assume the investment in plant is depreciated during years 2 and 3.) The land will be sold for $225,000 at the end of year 3. The tax rate on all types of income is 34%. The cost of capital is 12%. What are the operating cash flows at the end of Year 2? MACRS Depreciation Rates Year 10-Year 15-Year 1 10.00% 5.00% 2 18.00% 9.50% 3 14.40% 8.55% A) $304,750 B) $318,775 C) $321,750 D) $368,775 E) $371,750
Plexis Corporation holds 70 percent of Solar Company's voting common shares, acquired at book value, but none of its preferred shares. At the date of acquisition, the fair value of the noncontrolling interest was equal to 30 percent of the book value of Solar Company. Summary balance sheets for the companies on December 31, 20X5, are as follows: Plexis Corp.Solar CompanyCash and Receivables $70,000 $55,000 Inventory 60,000 35,000 Buildings and Equipment (net) 180,000 160,000 Investment in Solar Company 112,000 0 Total Assets $422,000 $250,000 Accounts Payable $40,000 $40,000 Preferred Stock 30,000 50,000 Common Stock ($15 par value) 90,000 75,000 Retained Earnings 262,000 85,000 Total
Liabilities and Owners' Equity $422,000 $250,000 Neither of the preferred issues is convertible. Plexis's preferred pays a 9 percent annual dividend, and Solar's preferred pays a 10 percent dividend. Solar reported net income of $40,000 and paid a total of $15,000 of dividends in 20X5. Plexis reported income from its separate operations of $80,000 and paid total dividends of $45,000 in 20X5.Based on the preceding information, what is the amount of earnings available to common shareholders reported in the consolidated financial statements for the year? A. $101,800 B. $115,000 C. $104,500 D. $112,300
In terms of allocating expenses between rental use and personal use, the IRS method of allocation tends to allocate more expenses to personal use than does the Tax Court method of allocation.
Answer the following statement true (T) or false (F)
The way to determine whether an occurrence is an event or part of the interaction before or after the event is to ask the following question: _______? a. Is the user finished with the task? b. Is the system at rest?
c. Is all the data input? d. Is all the printing completed?