Answer:
$880
Explanation:
Sales excluding sales tax
11880/(1+0.08)
11880/1.08
= $11,000
Sales tax payable =
Total sales including sales tax - Sales excluding sales tax
= $11,880 - $11,000
= $880
Therefore, sales tax payable is $880
Answer:
Answer:
$215
Explanation:
Eagles product has an EBIT of $400
Its tax rate is 30%
= 30/100
= 0.3
The depreciation is $16
The capital expenditures are $56
The planned increase in net working capital is $25
Therefore, the free cash flow to the firm can be calculated as follows
Free cash flow= EBIT(1-tax)+depreciation-capital expenditures- change in working capital
= 400(1-0.3)+16-56-25
= 400-120+16-56-25
= $215
Hence the free cash flow to the firm is $215
Answer:
A. Change in accounting principle (reported retrospectively) - PR
B. Change in accounting principle (exception reported prospectively) - PP
C. Change in estimate - E
D. Change in estimate resulting from a change in accounting principle - EP
E. Change in reporting entity - R
F. Correction of an error - N
Answer:
a.a debit to Cash Dividends for $120,000.
Explanation:
The amount of dividend paid is dependent on two function; the number of shares and the amount declared for payment per share.
When it is paid, a credit is posted to cash account and the corresponding debit is posted to the dividend paid account.
As such, since the company has 80,000 shares and the declared dividend was $1.50,
Total dividend paid = $1.50 × 80000
= $120,000.
Hence cash dividend is debited with $120,000 on payment.