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6 days ago

Carlos is a 25% owner of CEBJ Builders, a company that specializes in residential construction. The other 75% of CEBJ is owned b

y his three brothers. During the year, Carlos spends 1,800 hours managing the operations of CEBJ. He also is the 100% owner of four rental properties and spends 125 hours a year maintaining the properties, more than any other individual. During the current year, the four properties generate a loss of $18,500. His adjusted gross income before considering the rental loss is $118,000.
What amount of the loss can Carlos deduct from the current year?

Business

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Calculating Net Cash Flow from Operating Activities (Indirect Method) Lincoln Company owns no plant assets and reported the foll

Mariulka [3825]

Response:

(a) Cash flow generated from operating activities = 115,000

(b) Operating cash flow (NCOA) to current liabilities (CL):

Total current liabilities = 22000+9000 = 31000

NCOA relative to CL = 115,000/31000 = 3.71

Clarification:

Income Statement

Revenues 750,000

Cost of Goods Sold (470,000)

Gross profit 280,000

Salaries expenses (110,000)

Rental expenses (42,000)

Insurance costs (15,000)

Net Profit 113,000

Cash flow Statement

Net Profit 113,000

Cash flow derived from operating activities:

Increase in Accounts Receivable (54,000-49,000) (5,000)

Reduction in Inventories (66,000-60,000) 6,000

Growth in prepaid Insurance (8000-7000) (1000)

Rise in Accounts Payable (22000-18000) 4000

Decrease in wages payable (11000-9000) (2000)

Total increase in cash flow from operating activities 115,000

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2 months ago

Winn Corp. currently sells 9,820 motor homes per year at $45,500 each, and 3,680 luxury motor coaches per year at $89,700 each.

harina [3808]

Response::

$33,795,900

Rationale::

To determine sales from the new product line, ascertain the synergy from estimates provided by consultants and additionally account for any erosion.

1. Sales from the new product line = 3,758 campers at $14,750 each = $55,430,500

2. Synergy = 250 units at $45,500 each = $11,375,000 growth in sales

3. Erosion = 368 units each at $89,700 = $33,009,600 loss in sales

Thus, incremental sales are calculated as follows:

Net Sales = Sales from new line + Synergy - Erosion

Final incremental sales = 55,430,500 + 11,375,000 - 33,009,600 =

$33,795,900

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Read 2 more answers

On january 11, 2016, hughes company applied for a trade name. Legal Costs associated with the application were $20,000. In Jan.

marusya05 [3725]

Answer:

1. The ending carrying value for 2016 amounts to the legal fee for application, totaling $20,000.

The ending carrying value for 2017 equals the legal cost from 2016 plus the legal fees for 2017, calculated as $20,000 + $8,000 = $28,000.

2. The company should refrain from amortizing the trade name since it was not impaired in either 2016 or 2017. Amortization of the trade name can occur if its useful lifespan is known, and the company decides it will cease using the trade name; in that case, it will be amortized over its useful duration.

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