The benefit of a(n) _____ is that the contributions you make reduce your taxable income in the same tax year, and the earnings on your contributions are tax deferred, allowing them to grow more rapidly.
A. mutual fund
B. Roth individual retirement account
C. Exchange Traded Fund
D. traditional individual retirement account
Answer: D
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Cash paid for equipment would be reported on the statement of cash flows in
a. the cash flows from operating activities section b. the cash flows from financing activities section c. the cash flows from investing activities section d. a separate schedule
A cost pool should be made up of costs with a common cost object.
Answer the following statement true (T) or false (F)
______ is a person’s sustained motivation to a carry out a course of action or contribute to the well- being of some other person, group, or organization.
A. Expectancy B. Process C. Commitment D. Equity
Amalgamated Enterprises is planning to purchase some new equipment. With this new equipment, the
company expects sales to increase from $8,000,000 to $10,000,000. A portion of the financing for the purchase of the equipment will come from a $1,000,000 new common stock issue. The company knows that its current assets, fixed assets, accounts payable, and accrued expenses increase directly with sales. The company's net profit margin on sales is 8 percent, and the company plans to pay 40 percent of its after-tax earnings in dividends. A copy of the company's current balance sheet is given below. Amalgamated Enterprises Balance Sheet Current assets $3,000,000 Fixed assets 12,000,000 Total assets $15,000,000 Accounts payable $4,000,000 Accrued expenses 1,000,000 Long-term debt 3,000,000 Common stock 2,000,000 Retained earnings 5,000,000 Total liabilities and net worth $15,000,000 Prepare a pro forma balance sheet for Amalgamated for next year.