Janice is the sole owner of Catbird Company. In the current year, Catbird had operating income of $100,000, a long-term capital gain of $15,000, and a charitable contribution of $5,000. Janice withdrew $70,000 of profit from Catbird. Noting the tax entity type cited and regarding how Janice will report this information on her individual tax return, label each statement listed as being either "True" or "False".

Answers

Answer 1

Answer / Explanation:

To answer this question considering the tax entity and how Janice will report this information on her individual tax return, We need to consider the fact that different tax entity are categorized by its unique report and information.

So to properly answer these question, we will have to assume three (3) different scenario which are: (1) Is it a Limited Liability Company, Is it a Small business corporation, Is it an AC Corporation.

We should also note that this segregation is need as each type of corporation tax are dealt with differently thus enabling us treat the question properly in respect to tax entity and as regards to how Janice will report the information on her individual tax return.

Consequentially,

a. If Catbird Company is an LLC: A single-member LLC is taxed as a proprietorship. Thus, Janice will report the $100,000 operating income (Schedule C), $15,000 long-term capital gain (Schedule D), and if she itemizes, $5,000 charitable contribution (Schedule A) on her tax return. The $70,000 withdrawal would have no effect on Janice's individual tax return.

b. If Catbird Company is an S corporation: An S corporation is a tax reporting entity (Form 1120S), and its income, gains, deductions, and losses are passed through to and reported by the shareholders on their tax returns. Separately stated items (e.g., long-term capital gain and charitable contribution) retain their character at the shareholder level. Consequently, Janice will report the $100,000 operating income (Schedule E), $15,000 long-term capital gain (Schedule D), and if she itemizes, $5,000 charitable contribution (Schedule A) on her tax return. The $70,000 withdrawal would have no effect on Janice's individual tax return.

c. If Catbird Company is a C corporation: A C corporation is a separate taxable entity, and its taxable income has no effect on the shareholders until such time a dividend is paid. When dividends are paid, shareholders must report dividend income on their tax returns. Thus, Catbird Company will report taxable income of $110,000 ($100,000 operating income + $15,000 LTCG - $5,000 charitable contribution) on its Form 1120. Corporations receive no preferential tax rate on long-term capital gains. Janice will report dividend income of $70,000 (Schedule B) on her individual tax return.

Answer 2

Final answer:

Janice will combine her Catbird Company's operating income, long-term capital gain, and charitable contribution deductions to calculate her taxable income. She should understand the differences between accounting and economic profits while preparing her tax return. Long-term capital gains she earned are taxed at a different rate than regular income.

Explanation:

Janice, as the sole owner of Catbird Company, needs to understand the difference between accounting profit and economic profit when reporting her income on the individual tax return. The operating income of $100,000 and a long-term capital gain of $15,000 are combined with the charitable contribution of $5,000 to calculate taxable income. Accounting profit considers explicit financial flows, such as revenues and costs, while economic profit also accounts for opportunity costs, which include potential earnings from other ventures or the forgone interest income from invested capital.

For Janice, the personal withdrawal of $70,000 from the company is not directly related to the company's net profit or loss but reflects the distribution of earnings to the owner. When it comes to taxes, capital gains are subject to different tax rates depending on the duration of the investment holding period. Long-term capital gains, like Janice's, typically benefit from lower tax rates compared to short-term gains or regular income.


Related Questions

In the circular flow model _______.
a. goods markets provide for the transfer of money and labor markets provide for the transfer of inputs.
b. resource markets provide for the goods and services and product markets provide for the exchange of exchange of labor.
c. labor markets provide for the transfer of money and goods markets provide for the transfer of inputs.
d. resource markets provide for the exchange of labor and product markets provide for the exchange of goods and services.

Answers

Answer:

In the circular flow model, goods markets provide for the transfer of money and labor markets provide for the transfer of inputs.

Explanation:

The liquidity of money in goods markets is kept unhindered by the flow of goods, as a result of which, the transfer of money keeps happening. On the other hand, the labor markets function as the source of necessary input that is required for the business to keep running. When both these markets work in synchronous, there is a circular flow of entities within the market.

A production possibilities curve shows:

A. that resources are unlimited.
B. that people prefer one of the goods more than the other.
C. the maximum amounts of two goods that can be produced assuming the full use of available resources.
D. combinations of capital and labor necessary to produce specific levels of output.

Answers

Answer:

C. the maximum amounts of two goods that can be produced assuming the full use of available resources. 

Explanation:

Your friend hopes to expand her business to multiple locations. It would be best for her to create a1. limited liability company.2. sole proprietorship.3. corporation.4. partnership.

Answers

Answer:

3. Corporation

Explanation:

In a corporation form of business, the corporation is viewed as a separate legal entity and a corporation can have many divisions and branches which means it's geographical reach is better than any other forms of business such as proprietorship or partnership.

A Corporation also has better access to raising funds and it's capital is divided into stocks.

Apart from above, the taxation process for a corporation also differs from other forms

Thus, for someone who desires to expand business and reach out to more customers spread over different geographical locations, corporation form of business is recommended.

A recent poll found that nearly _____ percent of people say that executives make decisions based primarily on advancing their own careers

Answers

Answer:

95 %

Explanation:

A recent poll found that nearly 95 percent of people say that executives make decisions based primarily on advancing their own careers.

And the reasons are obvious. As per executives perspective everyones looks for their benefit first in corporates. So, there are no wrongs in this. As per other employees their opinion may be partly true and party due to human envy mind.

Honda Motor Company is considering offering a $ 2 comma 000 rebate on its​ minivan, lowering the​ vehicle's price from $ 30 comma 000 to $ 28 comma 000. The marketing group estimates that this rebate will increase sales over the next year from 40 comma 000 to 55 comma 000 vehicles. Suppose​ Honda's profit margin with the rebate is $ 6 comma 000 per vehicle. If the change in sales is the only consequence of this​ decision, what are its costs and​ benefits? Is it a good​ idea? ​Hint: View this question in terms of incremental profits.

Answers

Answer:

It is a good idea

Explanation:

Without the rebate, the annual revenue to the company given a price of $30,000 and a volume of 40,000 vehicles

= 30,000 * 40,000 = $1,2 billion.

However, with the rebate, total annual revenue given a price of $28,000 and a volume of 55,000 vehicles, would be

= $28,000 * 55,000 = $1.54 billion.

Thus, the rebate results in a $340 million increase in revenue, and it is therefore a good idea.

The likely costs of the rebate may be a necessary increase in man hours and the attendance increase in labour cost as more workers are needed to produce the increased volume. Other direct costs of production may increase too.

The likely benefit, apart from the increase revenue identified above, is the likely increase in market share for the company.

The ISO 9000 perspective on quality is that quality is basically defined by: Select one: a. senior management b. customers c. project sponsors d. project managers

Answers

Answer:

Option "A" is the most appropriate answer to the following  statement.

Explanation:

The ISO 9000 is a  quality management program that defines rules for organizations to ensure that they maintain the proper requirements of consumers and other key stakeholders within a product or service-related legislative and regulatory criteria.

The seven concepts of quality assurance are:

1-Consumer Awareness

2-Leadership

3-People Relationship

4-Process Strategy

5-Improvement

6-Evidence-based

7-product Control.

Answer:
Quality management

Explanation:

PLATO

What company has always promptly removed any content at the request of corporate copyright owners, but it has also pursued extensive revenue-sharing projects with those same companies.

Answers

Answer:

Youtuuube, or Alphabet to be more precise.

Explanation:

Youtuuube is constantly under fire for copyright infringement, you can find movies, TV series, sitcoms, cartoons, music, etc., on Youtuuube, but if the copyright holder requests that the content is removed, they will do it fast. On the other hand, Youtuuube is not necessarily a business partner for many copyright holders, but they cannot live without it.

Remember how powerful Howard Stern was on New York's radios, and how the singers or groups had to comply with his extravagant demands in order to included in his show? Youtuuube would be somewhat of a polite and well educated Howard Stern. Studios and record companies do not like Youtuuube, but they cannot survive without it either.  

A client with a hip fracture is returning to the orthopedic unit, and the orders indicate that the client should be turned by logrolling. Which statement regarding logrolling is correct?

Answers

Answer:Use a draw sheet or a friction reducing sheet to facilitate smooth movement

Explanation: LOGROLLING is a term used in the field of Medical surgery,where a patient who has a fracture and has the fracture,it is used to ensure that the patient does not feel a lot of discomfort or further pains or injuries when you want to move the patient. This process usually involves two or more persons for it to be very effective. During the LOGROLLING process the patient is moved with support given by the persons available holding the person's head to Prevent movements and the arms by the side or crossed to prevent movement till the desired position is reached,during this process a draw sheet or friction reducing sheet can be beneficial.

Graphically illustrate her total, marginal and average product curves as well as her marginal and average variable cost curves. Show where the inflection point lies, where production is maximized and what number of workers corresponds to the highest average and marginal product as well as the lowest average variable and marginal cost.TPL - Total Product LaborMPL - Marginal Product LaborAPL - Average Product LaborFC - Fixed CostVC - Variable CostTC - Total CostAFC - Average Fixed CostAVC - Average Variable CostATC - Average Total CostMC - Marginal Cost

Answers

Inflection point at 4 workers, production maximized at 8 workers, highest average product at 2 workers and marginal product at 3 workers, lowest average variable cost at 4 workers and marginal cost at 3 workers.

The total product curve (TP) starts off increasing at an increasing rate, but eventually starts to increase at a decreasing rate. This is because of diminishing marginal returns. The marginal product curve (MP) shows the change in total product as the number of workers increases. The MP curve reaches its peak at 3 workers, which means that this is the point at which adding one more worker will increase total product by the greatest amount. The average product curve (AP) shows the average output per worker. The AP curve reaches its peak at 2 workers, which means that this is the point at which the average worker is most productive.

The marginal cost curve (MC) shows the change in total cost as the number of workers increases. The MC curve intersects the average variable cost curve (AVC) at the minimum point of the AVC curve. This is the point at which the firm is producing at the lowest possible average variable cost.

The inflection point is the point on the TP curve where the curve changes from concave up to concave down. This is the point at which the MP curve crosses the x-axis. In this case, the inflection point is at 4 workers.

Production is maximized at the point where the MP curve is equal to zero. In this case, production is maximized at 8 workers.

The highest average product is achieved at 2 workers. The highest marginal product is achieved at 3 workers. The lowest average variable cost is achieved at 4 workers. The lowest marginal cost is achieved at 3 workers.

Complete question :-

Graphically illustrate her total, marginal and average product curves as well as her marginal and average variable cost curves. Show where the inflection point lies, where production is maximized and what number of workers corresponds to the highest average and marginal product as well as the lowest average variable and marginal cost.TPL - Total Product LaborMPL - Marginal Product LaborAPL - Average Product LaborFC - Fixed CostVC - Variable CostTC - Total CostAFC - Average Fixed CostAVC - Average Variable CostATC - Average Total CostMC - Marginal Cost

__________ conflict management norms resolve conflict openly, whereas __________ conflict management norms tend to avoid addressing conflict

Answers

Answer:

_active_conflict management norms resolve conflict openly, whereas _passive_ conflict management norms tend to avoid addressing conflict

ANSWER ASAP!!!
Create a balance sheet for the opening day of your company in the format below. Use your best estimates, but it doesn't have to be exact. Keep the section headings (Assets, Liabilities, and so on), but replace the specific information with your company's information. (4.0 points)

Answers

Answer:

See explanation section below

Explanation:

A balance should like the following format (Using hypothetical data)

"XXX" Company < The name of your company

Balance Sheet

As of December 31, 2019 < It should be the opening day of 2020 of your company

Assets

Current Assets

Cash                              XXXXX

Accounts Receivable     XXXX

Supplies                          XXXX

Inventory                         XXXX

Prepaid expenses            XXX

Accrued revenues           XXX

Total current assets (Add cash to accrued revenues to get total current assets)

Non-current assets (Fixed assets)

Tangible assets (Equipment, building, land, and machine)

Less: Accumulated depreciation - tangible assets

Intangible assets (Goodwill and patent)                          

Less: Impairment

Total Non-current assets (Fixed assets)

Total assets (Add total current assets and non-current assets)

Liabilities and Stockholders' equity

Current liabilities

Accounts payable

Unearned revenue

Bank Overdraft

Accrued expenses

Salaries/wages/interest payable

Total current liabilities

Long-term liabilities (Notes payable, bonds payable)

Total liabilities

Stockholders' equity

Common stock

Retained earnings

Total stockholders' equity

Total Liabilities and Stockholders' equity

This is how we can build up a balance sheet

The model that focuses on the multiplicity of influences on health-related behavior (or the focus on complex interactions between individuals and their environment) is referred to as:

Answers

Answer:

Ecological Model.

Explanation:

The Ecological model underlies the multiplicity of the various levels of influences on health-related behaviors, which can be:

Intrapersonal factors: These are the personal factors that influence the individual's behavior, such as personality, beliefs and knowledge.

Interpersonal factors: Correspond to interaction with other individuals, who are responsible for creating barriers or supporting the development of healthy behavior and interpersonal growth.

Institutional and organizational factors: Policies, rules, formal and informal structures that may or may not promote healthy behaviors.

Community factors: Existence of social norms between groups, individuals or organizations responsible for improving or limiting healthy behaviors.

Public policy factors: These are the policies and laws responsible for regulating health practices for disease prevention.

Marketing by a service firm to effectively train and motivate its customer-contact employees and all the supporting service people to work as a team to provide customer satisfaction is called ___________________ marketing.

Answers

Answer:

Internal

Explanation:

As the name implies, internal marketing is one in which a service firm trains employees in a product's company and its customers' contact to ensure maximum customer satisfaction. Internal marketing means that every member of staff is involved in marketing  and not just the marketing department of the firm.

Cheers.

The weighting of the factors that search engines use to decide which URLs appear first on searches for a particular search term is called data indexing.A. TrueB. False

Answers

Answer:

False

Explanation:

Data indexing involves storing data in such a way that it can be easily retrieved when needed.

When a search engine indexes and stores data, such data is then made available on a search engine results page when a user searches for a particular term on the search engine.

However, data indexing does NOT rank how URLs appear on user searches.

The management of warby parker believes that its operations must be grounded in

Answers

Answer:

Warby Parker is an eye glass manufacturing company, that manufacturers designer glasses that are cost effective. The management of Warby Parker believes that it's operations must be grounded in Cooperate Social Responsibility

Explanation:

Warby Parker is an eye glass manufacturing company, that manufacturers designer glasses, that are cost effective. The management of Warby Parker believes that it's operations must be grounded in Cooperate Social Responsibility

Final answer:

Warby Parker's operations are anchored in understanding industry psychology and values, striving for a better world, maintaining a harmonious structure, and aligning with their vision, mission, and values.

Explanation:

The management of Warby Parker believes that their operations must be grounded in a framework where understanding the psychology and values driving the industry is crucial, acknowledging the potential for the world to become a better place through their efforts.

Not only does this suggest a strong alignment with the company's vision, mission, and values, but also reflects a commitment to maintaining a harmonious structure within their operations.

Additionally, the importance placed on adhering to these principles is highlighted by the fact that employees are expected to honor this consistent organizational frame of reference as a condition of their employment, as demonstrated by Vining's approach to valuing her employees' beliefs in their success and transparent expectations.

If a city government spends a good deal of money on crime prevention and also on infrastructure maintenance, then spending even more money on crime prevention should result in ______.a. significant gains in infrastructure maintenance. b. relatively small gains in crime prevention. c. significant gains in crime prevention.

Answers

Answer:

B. Relatively small gains in crime prevention

Explanation:

b. relatively small gains in crime prevention

Because city government is already spending a good deal of money increasing the amount will have a relatively small effect on crime prevention. Rather it would be wise to spend optimally allocating sufficient amount to both infrastructure and crime prevention.

Which statement best describes why it is difficult to sell a home during a recession?


a.) Mortgage rates are high.

b.) Demand greatly decreases.

c.)Mortgages become unavailable.

d.) Housing prices increase.

Answers

Answer:

Option b: Demand greatly decreases.

Explanation:

Due to the economic decline, trade and industrial activities suffer significantly. Consequently, people gets afraid to make big investments until the situation stabilizes. Hence, buyers only agree to buying houses if they are getting a very good price quote. In other words, unless the seller reduces the selling price by a significant margin, people are not willing to make the purchase, therefore the demand decreases.

Lee Sun's has sales of $3,450, total assets of $3,150, and a profit margin of 6 percent. The firm has a total debt ratio of 42 percent. What is the return on equity?

Answers

Final answer:

The Return on Equity (ROE) for Lee Sun's is roughly 11.33 percent. It's computed by multiplying the Return On Assets (6.57%) with the equity multiplier (~1.7241).

Explanation:

The question involves determining the Return on Equity, which is a measure of a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested. We could start solving it by employing the formula for Return on Assets (ROA), that is, Net Income divided by Total Assets. We know that the profit margin is 6 percent, therefore the Net Income could be calculated as $3,450 multiplied by 6 percent (0.06) which equals $207. The total assets given are $3,150. Therefore ROA equals $207 divided by $3,150, which is approximately 0.0657 or 6.57 percent.

We also need to employ the equation to find the equity multiplier, which is 1 divided by (1 minus the total debt ratio). The total debt ratio given here is 42 percent (0.42), so the equity multiplier would be 1 divided by (1-0.42), which is roughly 1.7241.

The Return On Equity (ROE) is calculated by multiplying the Return On Assets (ROA) by the equity multiplier. Therefore, ROE would be 6.57 percent times 1.7241 which equals approximately 11.33 percent.

Learn more about Return on Equity here:

https://brainly.com/question/35528453

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Tom is an advertising executive at a car company. Before beginning work on a video advertising campaign for a new economy car, he creates key performance indicators for the campaign. What's Tom defining?
A) Marketing objectivesB) Media objectivesC) Business objectivesD) Campaign metrics

Answers

Answer: Media Objectives.

Explanation:

Media objectives are the goals set ahead of a business media outreach where, the amount of consumers to be reached and the expected reaction of the consumers to media adverts are determined beforehand. Tom's performance indicators for his firm's media campaign, are part of the media objectives he seeks to achieve.

In a university setting, each student is paired with another student for the purpose of getting assignments and turning in work for the other if he is out of school for any reason. This is a _____ relationship. Group of answer choices one-to-one binary one-to-many binary many-to-many binary one-to-one unary one-to-many unary

Answers

Answer:

one-to-one Unary

Explanation:

It is one-to-one binary  relationship because one student is grouped with one student only. Unary because they have the same relationship in the university  and share the same class and learning procedures.

In binary relationships there are various entities for example in this situation if the university or colleges were different then it would have been binary .

In the given question only one student is teamed up with one student therefore it is one to one not one to many.

Andy keeps his savings in a money market mutual fund, Been keeps his invested in U.S. savings bonds, and Charlie keeps his in a bank. Who is using direct finance?a. -andyb. =benc. -charlied. -all three

Answers

Answer:

B, Ben

Explanation:

Direct finance is a financing method in which a borrower borrows money directly from the financial market. This means that direct financing mainly does not involve any intermediary. There are some situations where a third party/intermediary involvement still counts for direct finance. but mainly, direct finance does not involve a third party. From the question, Ben is dealing directly with US saving bonds with is a part of the financial market is using direct finance. Banks, agents, etc are all intermediaries as they also contact the financial market to be able to sell securities or anything to the customer.

Cheers.

The figures below depict the production possibilities frontiers (PPFs) for two people who can allocate the same amount of time between making pizzas and making stromboli.
A) Bo has a comparative advantage in the production of stromboli because her opportunity cost is lower.
B) Bo has a comparative advantage in the production of stromboli because her opportunity cost is higher.
C) Bo has a comparative advantage in the production of pizzas because her opportunity cost is lower.
D) Bo has a comparative advantage in the production of pizzas because her opportunity cost is higher.
E) Bo has a comparative advantage in the production of both pizzas and stromboli.

Answers

QUESTION:

The table below depict the production possibilities frontiers (PPFs) for two people who can allocate the same amount of time between making pizzas and making stromboli. Refer to this table to answer questions 3-4.

                           Bo                                                    Kenzi

          Pizza                 Stromboli                      Pizza                 Stromboli

            25                            50                             40                         20  

Answer: A -  Bo has a comparative advantage in the production of stromboli because her opportunity cost is lower.

Explanation:Production possibilities frontiers (PPFs) indicates the maximum output combinations of two goods or services an economy can achieve by fully using all available resources efficiently.

This means that,  if more of product A is produced, less of product B can be produced given that the resources and production technology remain constant.

Looking at the question above, Bo has a competitive advantage as Bo produces more of both pizza and stromboli than kenzi.

Answer:

A) Bo has a comparative advantage in the production of stromboli because her opportunity cost is lower.

Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance?

Answers

Answer:

The answer to this question is Defamation

Explanation:

Defamation refers to any statement (Whether written or verbal) that is untrue and injurious  to any of the parties involved in the insurance business.

A statement is said to be a Defamatory statement if it is false especially regarding the financial condition of the insurer.

Identifying defamatory statement

Statements must be untrue it must be capable of causing damage of injury to person or business.

ABC Inc. company, founded by three women who met in college, has recruited talented people since its inception. It now employs approximately 350 people. Once a month a meeting is held where anyone can present new ideas to management. Coming out of these meetings, presenters have 30 days to work on a proof of concept or prototype, after which management makes a decision to pursue an idea company-wide or drop it. If an idea is selected, the individual(s) who presented the ideas receive a cash bonus. Based on this information, what kind of company is ABC Inc.?

Answers

Final answer:

ABC Inc. is an innovative, progressive company with a culture that encourages and rewards employee contributions and new ideas.

Explanation:

Based on the information provided, ABC Inc. appears to be a progressive and innovative company that values creative thinking and participation from its employees. With a strong focus on collaboration and employee engagement, it adopts a model where new ideas are encouraged and rewarded. The practice of holding monthly meetings for idea pitches, followed by a supportive process for proof of concept development, suggests that ABC Inc. aligns with a modern, employee-centric corporate culture that fosters innovation and may be structured around a flat or matrix organizational model.

In an analysis of the market for paint, an economist discovers the facts listed below. State whether each of these changes will affect supply or demand, and in what direction. a. There have recently been some important cost-saving inventions in the technology for making paint. b. Paint is lasting longer, so that property owners need not repaint as often. c. Because of severe hailstorms, many people need to repaint now. d. The hailstorms damaged several factories that make paint, forcing them to close down for several months.

Answers

Answer:

A) Rightward shift of the supply curve. When a company is able to produce its goods at a lower cost, the whole supply curve sill shift to the right. This can be accomplished through a new technology or a decrease in the price of inputs.

B) On the short run, the quantity demanded of paint will increase, since a better product usually means higher demand, so the demand curve will shift to the right. But on the long run, the quantity demanded for the product will decrease since the customers will not need to paint their houses as often as before, shifting the demand curve to the left.

C) This will shift the demand curve to the right, increasing the quantity demanded at every price level.

D) This will definitely reduce the quantity supplied and shift the supply curve to the left. It has a similar effect to a cost increase. This shift will last until the factories start producing again.

Organizations using information systems to deal with competitive forces lose customers to new entrants Unselected keep the prices of their products high Unselected tighten linkages with suppliers and develop intimacy with customers Sure I AM SURE use manual labor for routine processes?

Answers

Answer:

Tighten linkages with suppliers and develop intimacy with customers.

Explanation:

1. Organizations should tighten linkages with Suppliers

Organizations should maintain good business relations with the suppliers. This can be done by ensuring them longer term business i.e. continously purchasing raw material and other items from them.

2. Organizations should develop intimacy with customers

This can be ensured by better and effective communication with the customers. This will provide room for products improvement and enable greater customer loyalty thereby.

Hence, organizations using information systems should tighten linkages with suppliers and develop intimacy with customers in order to deal with competitive forces.

Which of the following concepts recognizes that managers must use their judgment to ensure that the cost of control does not exceed the system's benefits or the risks involved?
a) risk assessment
b) reasonable assurance
c) security policy
d) security versus privacy

Answers

Security policy think so

last year Nowitzki inc. entered into an agreement with Duncan partners, an investment bank. At the time of issue, Duncan Partners has agreed to purchase all offered shares from Nowitzki and then try to sell all shares in the primary market. what kind of arrangement is this an

underwritten agreement

or

a best efforts arrangement

Answers

The answer is a best efforts agreement

Incentive Contracts (both Cost & Fixed Price Types) provide a method for adjusting the contractor's profit or fee, and establishing the final contract price by using a formula based on the relationship of final negotiated total cost to total target cost. A. True B. False

Answers

Answer:

True

Explanation:

The statement is correct that Incentive Contracts (both Cost & Fixed Price Types) provide a method for adjusting the contractor's profit or fee, and establishing the final contract price by using a formula based on the relationship of final negotiated total cost to total target cost because in project management a contract is said to be incentive based when the owner has promised to make additional compensation to the contract price if in the course of the contractor's execution, events trigger a higher compensation; which could be as a result of cost, delay in time schedule, increased quality, and higher safety standards than those originally prescribed in the contract terms and conditions.

Alpha Manufacturing has interest expense of $12 million, total assets of $184 million, sales of $176 million, long-term debt of $16.4 million, and net income of $15 million. How will interest expense be recorded in the common-size income statement?

Answers

Answer:

0.068

Explanation:

Common size income statement in which we divide all the items with it's revenue. So, interest is $12 M, and sales is $176 M.

Dividing 12/176= 0.068

That means the interest is 6.8% of revenue. Common size is used for comparison purpose. If let's say in next year interest become 15% of revenue then company would know that it's using more debt. It's also used for comparing with competitors.  

Other Questions
Watunga County Bank agrees to lend Marigold Granite Company $592000 on January 1. Marigold Granite Company signs a $592000, 8%, 9-month note. The entry made by Marigold Granite on January 1 to record the proceeds and issuance of the note is The indigenous population of Central Mexico united as one people to fight the Spanish conquistadors but were, ultimately, out numbered and over-whelmed by the invaders." Is this statement historically accurate? Anthony is a marine biologist who spends months living on a boat in the ocean studying the impact of runoff water a hundred miles off the coast as a part of his job. Which of the following sentences is the most accurate? True or False: When a research project includes the collection of biological samples, all planned future uses of the samples, identifiers, and the data obtained from the samples, must be fully explained to the research subject. On this day in history Miguel de Cervantes' "Don Quixote" was published on January 16, 1605. It is considered by many to be the first modern novel and one of the greatest novels of all time. In human societies, _______ serve to ensure conformity among its members, reinforce social order, and justify social differentiation Carmen operates a franchise tanning salon. Negative publicity about the effects of tanning has diminished her ability to grow the business. Carmen has a(n):________.a. attractive small firm. b. micro-business. c. high-potential venture. d. lifestyle business. During discharge patient teaching, the nurse reviews prescriptions with a patient. Which statement is correct about refills for an analgesic that is classified as Schedule C-III?a. No prescription refills are permitted.b. Refills are allowed only by written prescription.c. The patient may have no more than 5 refills in a 6-month period.d. Written prescriptions expire in 12 months. Maria does 500 Newton-meters of work moving books from one table to another. The total force is 100 Newtons. How far were the books moved? A ball is tossed so that it bounces off the ground, rises to a height of 2.50 m, and then hits the ground again 0.90 m away from the first bounce.1.How long is the ball in the air between the two bounces?2.What is the ball's velocity in the x-direction?3.What is the ball's speed just before the second bounce?4.What is the angle of the velocity vector with respect to the ground right after the first bounce Between 1670 and 1715, as many as 50,000 Indians were sold as slaves in Charles Town for export to other regions in the Americas. The number of Native American slaves exported from Charles Town exceeded the number of Africans imported.A) True B) False To remain competitive, firms collect intelligence on a number of external factors. Information related to population change is referred to as ________ information. Question 2 of 102 PointsWhat is it called when scientists explore the world around them? The largest reservoir of carbon in the carbon cycle is in sedimentary rock that may take hundreds of millions of years to return to the living portion of the cycle. What is the second largest reservoir of carbon? Amy sets herself a goal and says. "I'd like to lose 10 pounds." Which of the following criteria of the SMART system is missing in Amy's goal?a. Specificityb. time framec. measurabilityd. realism The 49th parallel separating Canada from the United States across much of western North America is classified as what type of boundary?A) artificial or geometricB) ethnographicC) naturalD) subsequent Clara has a purse in the shape of a trapezoid the top of the purse measures 22 cm while the bottom of the part measures 36 cm if the area of the purse is 754 centimeters what is the height Captain John Smith's role at Jamestown can best be described as A) very limited. B) saving the colony from collapse. C) persuading the colonists to continue their hunt for gold. D) worsening the colonists' relationship with the Indians. E) reducing the terrible death toll. 4.A baseball player throws a baseball straight up into the air with an initial speed of 25 m/s.A. What is the maximum height to which the ball rises?B. What is the speed of the ball when it is halfway up to its maximum height? Brenda kraft has proven herself to be an able manager. her section has a high project completion rate with the highest-quality product and the lowest defects in her division. in addition, she accomplishes this with fewer full-time people than other managers. co-workers say that the secret of her success is in her ability to determine what needs to be done and by whom, and her understanding of the basic "management processes." Steam Workshop Downloader