BUSINESS COLLEGE

Hoobstank, inc., has sales of $425,000, cost of $210,000, depreciation expense of $63,000, interest expense of $38,000, and a tax rate of 35 percent. what is the net income for this firm

Answers

Answer 1
Answer: Hoobstank, inc.

Income Statement:
Sales......................................$425,000
Costs......................................$-210,000
Depreciation...........................$-63,000
EBIT(Operating Profit)............$152,000

To find EBIT: sales - costs -depreciation = EBIT
Ex. 425,000 - 210,000 - 63,000 = $152,000 

Interest....................................$-38,000
EBT (Expense before tax).......$114,000

To find EBT: EBIT - Interest = EBT
Ex. 152,000 - 38,000 = $114,000

Tax rate 35%...........................39,900
To find Tax: Sales - cost - depreciation - Interest = Tax .35(answer) = tax
Ex. 425,000 - 210,000 - 63,000 - 38,000 = $114,000 (if your answer is equal to EBT, its correct) so, 0.35(114,000) = 39,900

Net Income..............................$74,100
To find Net Income: 114,000 - 39,900 = $74,100

Related Questions

COLLEGE

Cheers Inc. operates as a partnership. Now the partners have decided to convert the business into a regular corporation. Which of the following statements is CORRECT? a. Cheers will now be subject to fewer regulations. b. Cheers' shareholders (the ex-partners) will now be exposed to less liability. c. Cheers' investors will be exposed to less liability, but they will find it more difficult to transfer their ownership. d. Assuming Cheers is profitable, less of its income will be subject to federal income taxes. e. Cheers will find it more difficult to raise additional capital.

Answers

Answer: The correct answer is "b. Cheers' shareholders (the ex-partners) will now be exposed to less liability.".

Explanation: The statement "b. Cheers' shareholders (the ex-partners) will now be exposed to less liability." is CORRECT because former partners (when the company operated as a company) now become shareholders (because the company functions as a regular corporation) and they are exposed to less liability in situations where the corporation is a debtor.

HIGH SCHOOL

A study found that, among addicted smokers, a 10 percent increase in the price of cigarettes resulted in a 2 percent decrease in quantity demanded. For these consumers, cigarettes have a(n) ________ price elasticity demand.

Answers

Answer:

inelastic PED

Explanation:

Price elasticity of demand (PED) is the proportional change in quantity demanded of a good or service if the price changes by 1%. The PED is calculated by dividing the percentage change in quantity demanded by the negative percentage change in price.

PED = -2% / -10% = 0.2 inelastic

If PED > 1, elastic demand

If PED < 1, inelastic demand

If PED = 1, unitary demand

COLLEGE

"Many forms of online communication, such as e-mails, tweets, and the content of Web pages, requires short-form, concise writing. In two or three paragraphs, discuss how story telling might motivate short-form writing that can convey elements of a company’s or a product’s brand image online."

Answers

Explanation:

The advertising strategy before the internet was carried out on platforms such as radio, television and newspapers, which were the media that people most had access to. Currently, the internet is the main platform for advertising and interaction between companies and consumers. This is due to the ease and speed with which the flow of the internet happens, the messages are seen almost instantly and available in the palm of the hand, available from a smarthphone.

However, despite the ease of implementing marketing through social media, it is necessary for companies to adopt an advertising engagement strategy, the narrative must be summarized and contain essential traits that convey who the company is and what it wants to pass on to consumers , generating value and direct communication, making the message different and striking in a medium where there is different information every second.

HIGH SCHOOL

Firm a is a new producer in the market for good​ x, which is characterized by linear demand and supply curves.​ initially, to attract​ customers, the firm prices its product low at​ $8 per unit. while the firm sells​ 1,000 units of the product at this​ price, there is a shortage in the market. this shortage can be cleared if price is increased to​ $10 per unit. the quantity demanded and supplied at this higher price will be​ 1,500 units.

Answers

I believe the information above is best supported by; the fact that producer surplus will increase if the price rises from $ 8 per unit to $10. This is due to the fact that there is a shortage in the market therefore demand will increase, this results to customers wanting to buy at a higher price than the initial cost, to satisfy their demand and need
HIGH SCHOOL

In the case of an ethnocentric approach, it is possible that managers may make decisions that are ethically suspect because they do not understand the culture in which they are managing. A) True
B) False

Answers

Answer:

The correct answer is B) False

Explanation:

An ethnocentric approach to management will precisely take into account the cultural characteristics of a particular ethnic group, therefore, the probability of a manager taking a decision that conflicts with the values of said ethnic group is lower.

For example, suppose that a pizza delivery firm wants to set up business in Italy. An ethnocentric approach would result in the avoidance of selling hawaian pizza in Italy, because Italians do not like that specific type of pizza.

COLLEGE

Schuepfer Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 1,800 units are planned to be sold in March. The variable selling and administrative expense is $4.30 per unit. The budgeted fixed selling and administrative expense is $35,620 per month, which includes depreciation of $2,700 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the March selling and administrative expense budget should be:

Answers

Answer:

The cash disbursements for S&A  should be: $40,660

Explanation:

Assuming all variable cost are paid in cash

35,620 fixed S&A

- 2,700 depreciation (non-monetary)

32,920 Cash disbursement for fixed cost

32,920 + 7,740= 40,660

MIDDLE SCHOOL

Banks pay their customers interest on the money in their accounts for what reason? A. That money earns interest when the bank loans it out. B. They are sharing the bank's profits instead of paying dividends. C. The government sets a minimum interest rate for customers. D. They want to keep their customers happy so they'll be loyal. 2b2t

Answers

Answer:

A. That money earns interest when the bank loans it out.

Explanation:

Banks pay their customers interest on the money in their accounts because that money earns interest when the bank loans it out.

Answer: A is correct for AP3X(:

Also what about 2b2t?

HIGH SCHOOL

A? ________ is a? large-capacity, high-performance computer that can process large amounts of data very rapidly.

Answers

A "MainframeB" is a large-capacity, high-performance computer that can process large amounts of data very rapidly
HIGH SCHOOL

Which of the following actions might be part of a protectionist economic policy? a. reducing barriers to trade
b. signing free trade agreements
c. cutting tariffs on imported goods
d. establishing quotas on imports

Answers

The correct answer is letter (C) cutting tariffs on imported goods. In economics, the perfectionist economic policy is referred to as the restraining trade between states or countries) with a method of tariffs on imported goods, variety of other government regulations to create fair competition.

C

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