Compute net income for the first year

Assignment Help Accounting Basics
Reference no: EM132590836

Question - Alpaca Corporation had revenues of $290,000 in its first year of operations. The company has not collected on $19,100 of its sales and still owes $25,300 on $100,000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $11,000 in salaries. Owners invested $10,000 in the business and $10,000 was borrowed on a five-year note. The company paid $3,600 in interest that was the amount owed for the year, and paid $7,600 for a two-year insurance policy on the first day of business. Alpaca has an effective income tax rate of 40%.

Required - Compute net income for the first year for Alpaca Corporation.

a. $171,600

b. $190,000

c. $100,680

d. $102,960

Reference no: EM132590836

Questions Cloud

What were the total variable expenses in store k : What were the total variable expenses in Store K?Ieso Company has two stores: J and K. During November, Ieso Company reported operating income of $30,000
What is fink revenue from insurance premiums : Fink Insurance collected premiums of $19,000,000 from its customers during the current year. What is Fink revenue from insurance premiums
Determine the cost equation to estimate customer web site : sing the high-low method, estimate the variable cost per Web site hit and the monthly fixed costs.Determine the cost equation to estimate the customer Web
Discuss the factors in the external environment : Identify and discuss the factors in the external environment that could have an influence on the performance of Buckeye Beans
Compute net income for the first year : Alpaca Corporation had revenues of $290,000 in its first year of operations. Compute net income for the first year for Alpaca Corporation
Measure training effectiveness in a qualitative manner : Describe a training scenario in which you could measure training effectiveness in a qualitative manner.
Implement security measures : When or where would you think it would be necessary to implement security measures for both?
Evaluate the equivalent cost per unit : Compute the equivalent cost per unit, assuming the ending inventory is considered to be 40 percent complete.René Alverez knew she was in over her head soon
Which is the numerator in the calculation of the turnover : Which of the following is the numerator in the calculation of the turnover component of ROI? Invested capital./ Total assets./Operating income. /Sales.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the cost of new common equity

What is the cost of new common equity considering the estimate made from the three estimation methodologies? Round your answer to 2 decimal places.

  Contrast the straight line method and the units of activity

Contrast the straight-line method and the units-of-activity method as to

  Based on the variance you calculated develop some plausible

the beal manufacturing companys job-costing system has two-direct cost categories direct materials and direct

  What was the correct net income for may

What was the correct net income for May, assuming the bookkeeper reported net income of $4,500 after posting all 50 entries

  How are the concepts of positive and normative economics

Given the current pressures on China, Jamaica, and America expressed in the article, how would ethics play a role in decision making for financial, environmental, and cultural issues, How are the concepts of positive and normative economics reflect..

  Eliminating the audit trail

Is it probable that the use of information technology will eventually eliminate the audit trail, making it impossible to trace individual transactions from their origin to the summary total on the financial statements?

  Total cash received on the issue date

Farmer Company issues $10,000,000 of 10-year, 9% bonds on March 1, 2010 at 97 plus accrued interest. The bonds are dated January 1, 2010, and pay interest on June 30 and December 31. What is the total cash received on the issue date?

  What are the costs of goods sold in common-size percents

A company reports the following comparative income statements: What are the costs of goods sold in common-size percents for 2008 and 2009, respectively

  What will ahnen report in investments

Ahnen Company owns the following investments. Trading securities (fair value): $70,000, What will Ahnen report in investments in its current assets section

  Prepare the journal entries to record issuing the bonds

Prepare the journal entries to record issuing the bonds and any necessary journal entries for 2013 and 2014. Post the journal entries to T accounts.

  Examine the information contained in the companys balance

examine the information contained in the companys balance sheet and income statement to answer the following

  What is the flexible budget formula for factory overhead

What is the flexible budget formula for factory overhead? As a HR manager, how might you make use of this information in the decisions being made about employee headcount - including hiring and staffing choices

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd