Healy Corporation recorded service revenues of $200,000 in 2014, of which $80,000 were on credit and $120,000 were for cash. Moreover, of the $80,000 credit sales for 2014, Healy collected $20,000 cash on those receivables before year-end 2014. The company also paid $40,000 cash for 2014 wages. Its employees also earned another $20,000 in wages for 2014, which were not yet paid at year-end 2014. Compute the company’s net income for 2014.
Solved
Show answers
More tips
- F Food and Cooking How Many Grams Are In a Tablespoon?...
- L Leisure and Entertainment Carving: History and Techniques for Creating Vegetable and Fruit Decorations...
- P Photography and Videography How to Choose the Perfect Photo Paper for Your Images?...
- H Health and Medicine What vaccines do children need?...
- H Health and Medicine Reasons for the Appearance of Warts: Everything You Need to Know...
- A Art and Culture How to Learn Screaming: Step-by-Step Guide for Beginners...
- H Health and Medicine Contraceptive Pills After 35: The Importance Of Choosing The Right Medication...
- C Computers and Internet How to Choose a Monitor?...
- H Horoscopes, Magic, Divination Where Did Tarot Cards Come From?...
Answers on questions: Business
- B Business What s an example of situational at work place where an individual ethics could be in jeopardy?...
- B Business A music artist has just finished creating his most recent single and it is now ready for release. The artist loves when others remix and reuse his harmonies, melodies and...
- B Business With europe still recovering from the great war during the 1920s, american corporations invested massive amounts of money into overseas interests. identify the statements...
- B Business Abc company had the following transactions: owners invested $80,000. purchased equipment for $50,000 on credit. borrowed $60,000 from the bank. purchased $25,000 of computer....
- B Business Banks can protect themselves against an unexpectedly high rate of loan defaults and against the risk of by adopting a strategy that will a. rising interest rates; diversify...
- B Business Aclient calls the emergency department and tells the nurse that he has been cleaning a wooded area and that he came into direct contact with poison ivy shrubs. the client...
- E English Can someone please write a summary for me....
- C Chemistry How many oxygen atoms are there in 0.25 mole of CO2?...
- P Physics 4. An aluminium bar weighs 17 kg in air. How much force is required to lift the bar while it is immersed in gasoline? The densityof aluminium is 170 kg/m and that of gasoline...
- C Chemistry Help asap please. A solution contains an unknown mass of dissolved barium ions. When sodium sulfate is added to the solution, a white precipitate forms. The precipitate is...
Ответ:
$140,000
Explanation:
Computation of the company’s net income for 2014.
Using this formula
Net income=Revenue – Expenses
Let plug in the formula
Net income=$200,000 - $40,000+$20,000
Net income= $140,000
Therefore the company’s net income for 2014 will be $140,000
Ответ:
14.95%
Explanation:
First we will determine the market risk premium which shall be calculated as follows:
Market risk premium=Expected annual return of market-Risk free return
In the given question
Expected annual return of market=13%
Risk free return=Return on T-Bonds=6.5%
Market risk premium=13%-6.5%=6.5%
Based on above Market risk premium, the firm required return shall be calculated as follows:
Firm required return=Risk free return+Beta*Market risk premium
=6.5%+1.30*6.5%
=14.95%