Response: $11,200
Justification:
Utilizing the accounting equation:
(Total Assets) = (Total Liabilities) + (Total Capital)
Thus,
(Total Liabilities) = (Total Assets) - (Total Capital) (1)
To determine total liabilities, we first need to ascertain total assets and total capital.
At the end of the first year, the assets of Shapiro's consulting services are as follows:
Cash: $16,000
Office Supplies: $3,200
Equipment: $24,000
Accounts Receivable: $8,000
TOTAL ASSETS $51,200
Note that total assets are calculated by summing the values of each asset above.
Net income represents an increase (or decrease if it's a loss) in capital, thus we classify it as part of capital. Specifically, net income at the end of the first year adds to the initial capital.
The owner's withdrawal also decreases the capital.
Consequently, total capital at the end of the first year is computed as:
Capital (beginning of the year): $15,000
Net Income (end of year): $27,000
Withdrawal Amount: ($2,000)
TOTAL CAPITAL: $40,000
Note: The notation ($2,000) indicates a deduction of $2,000 in accounting terms.
Using (1), total liabilities at the end of the first year can be calculated as
(Total Liabilities) = (Total Assets) - (Total Capital)
= $51,200 - $40,000
Total Liabilities = $11,200
Answer:
limits the simultaneous development of new products.
Explanation:
Product screening serves to evaluate innovative concepts, strategies, and marketing trends to assess their practicality for business investments.
A variety of criteria are utilized to determine if the idea aligns with the company's goals, as well as to verify its potential for generating returns.
[[TAG_15]]Thus, product screening effectively reduces the number of product concepts being pursued concurrently.[[TAG_16]]
Answer:
$46,000.
Explanation:
To determine the retained earnings as of the end of 2015, we must first assess the total dividend that will be distributed to shareholders, and then combine the net income from 2015 with the leftover retained earnings from the conclusion of 2014 (after the distribution of 2014's dividend in March 2015) to arrive at the retained earnings figure for the close of 2015.
Total dividend on March 2015 = 0.7 x 100,000 = 70,000
Retained Earnings as of the end of 2015 = 94,000 - 70,000 + 22,000 = 46,000.
Answer:
Eiffel Corporation
Tax implications for Tower:
Withholding tax = €2,500 x $1.50 = $3,750.00
Domestic Corporation tax = 156,712.50
Overall tax effect = $160,462.50
Explanation:
a) Inputs and Calculations:
Dividend = €500,000
Withholding tax = €2,500
After withholding tax = €497,500
Exchange rate = €1 = $1.50
Consequently, net dividend after withholding tax = €497,500 x $1.50
= $746,250
Corporate tax rate = 21% of $746,250
= $156,712.50
Tower incurs a withholding tax of $3,750 when converted to dollars and faces a corporation tax on earnings amounting to $156,712.50, calculated under the TCJA tax rate of 21%, a reduction from the previous 35%.
