Last year Almazan Software reported $10.500 million of sales, $6.250 million of operating costs other than depreciation, and $1.300 million of depreciation. The company had $5.000 million of bonds that carry a 6.5% interest rate, and its federal-plus-state income tax rate was 35%. This year's data are expected to remain unchanged except for one item, depreciation, which is expected to increase by $0.310 million. By how much will net income change as a result of the change in depreciation? The company uses the same depreciation calculations for tax and stockholder reporting purposes. (Round your final answer to 3 decimal places.)
A. -$0.232
B. -$0.155
C. -$0.212
D. -$0.202
E. -$0.193
Answer: D
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A separate account for each type of material is kept in a subsidiary ledger called a(n)
a. materials requisition ledger; b. work in process ledger; c. purchases ledger; d. inventory ledger; e. stores ledger
How many accounting standards are there now in operation?
A. Two B. Six C. Four D. Three
A _____ is an instrument issued by a bank, post office, or express company indicating that the payee may request and receive the amount indicated on the instrument.
Fill in the blank(s) with the appropriate word(s).
Fields Cutlery, a manufacturer of gourmet knife sets, produced 20,000 sets and sold 23,000 units during the current year. Beginning inventory under absorption costing consisted of 3,000 units valued at $66,000 (Direct materials $12 per unit; Direct labor, $3 per unit; Variable Overhead, $2 per unit, and Fixed overhead, $5 per unit.) All manufacturing costs have remained constant over the 2-year period. At year-end, the company reported the following income statement using absorption costing:Sales (23,000 × $45)$1,035,000 Cost of goods sold (23,000 × $22) 506,000 Gross margin$529,000 Selling and administrative expenses 115,000 Net income$414,000 60% of total selling and administrative expenses are variable. Compute net income under variable costing.
A. $644,000 B. $529,000 C. $414,000 D. $399,000 E. $429,000