I think the correct answer from the choices listed above is the third option. It is the withholdings that result in a lower net income. <span>A </span>withholding<span> tax, also called a retention tax, is a government requirement for the payer of an item of income to </span>withhold<span> or deduct tax from the payment, and pay that tax to the government. </span>
Answer:
a. 40 % and $630,000
b. $ 270,000
Explanation:
The contribution margin ratio = Contribution ÷ Sales
The dollar sales volume required to break even = Fixed Cost ÷ contribution margin ratio
the margin of safety (in dollars) - company sells 20,000 units = Expected Sales - Break even Sales
Answer:
The correct answer is - No,
Explanation:
The correct answer is - No,
The answer is no because the broker brings a buyer who is ready to give 1005 cash offer which is against the legal agreement defined by the owner. owner state that he is only taking a 25% cash offer.
Therefore the owner wouldn't consider the broker and didn't due broker commission.
Operating Costs
3.Cost of actually running a business
This is a clear indication of the company's resource usage productivity.
Accounts Payable
6.Amounts of money the company owes to other companies for products
as this affect the overall short term debt, if this is lower, the better for the company.
Cash Flow
4.The movement of money in or out of a business
having a positive cash flow is good for investment and capital expenditures.
Startup Costs
2.Cost of starting up a business until it can pay for itself
these costs are most of the time unavoidable.
Gross Profit
5.Total Revenue - Cost of Goods Sold
Angel Investor
1.An investor who provides money to a business in exchange for debt or equity
however, the risk is that you might end up giving a significant controlling stake of the company to the investor.
Answer:
a. 8%
Explanation:
Expected Return = [(Return*Probability)+(Return*Probability)+(Return*Probability) * 100%]
Expected Return = [{(15%*0.2)+(10%*0.2)+(5%*0.6)} * 100]%
Expected Return = [{(0.15*0.2)+(0.1*0.2)+(0.05*0.6)} * 100]%
Expected Return = [{0.03+0.02+0.03} * 100]%
Expected Return = [{0.08 * 100}]%
Expected Return = 8%
So, Liqin's expected return for fixing up and selling the Corvette is 8%.
