An insurance company is covered by occurrence reinsurance with a layer of 750 and an attachment of 250. In a given year, it experiences individual loss occurrences of 50, 850, 300, and 2,100. What are the annual aggregate gross and net loss amounts for the company?
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An insurance company is covered by occurrence reinsurance with a layer of 750 and an attachment of 250. In a given year, it experiences individual loss occurrences of 50, 850, 300, and 2,100. What are the annual aggregate gross and net loss amounts for the company?
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- Which of the following expenses are reported on the income statement when they are incurred? Direct material Product costs Period costs Indirect materialnt i Net sales (all credit) Less: Cost of goods sold Gross profits Less: Other operating expenses EBITDA Less: Depreciation and amortization EBIT Less: Interest EBT Less: Taxes Net income Determine the firm's 2021 tax liability. Tax liability Oakdale Fashions, Inc.'s, 2021 income statement is reported below. (Use corporate tax rate of 21 percent for your calculations.) Oakdale Fashions, Inc., Income Statement for 2021 Determine the firm's 2021 net income. Net income $ 660,000 253,000 $ 407,000 128,000 $ 279,000 18,800 $ 260,200 89,500 $ 170,700 $ Saved < Prev K myPay 2 of 12 ww Next aos mefaLaila’s Surveying Inc. had revenues of $1.5 million in 2016. Expenses totaled $900,000. What was her net profit (or loss) if the tax rate is 38%?
- Devlin is a computer programmer who earned $30,000 in 2019. But on January 1, 2020 Devlin opened a landscaping business. Question Facts At the end of the first year of operation, he submitted the information on the right to his accountant. 1. Devlin stopped renting out his cottage for $4,000 a year and used it as his business premises. The accountant recorded the depreciation on Devlin's cottage during 2020 as $2,000. 2. The market value of the cottage increased from $70,000 to S71,000. 3. He spent $10,000 on materials, phone, utilities, etc. According to the accountant, what profit did Devlin make? 4. He leased machines for $14,000 a year. 5. He paid $5,000 in wages. 6. He used $5,000 from his savings account, which earns 5 percent a year interest. According to the accountant, Devlin's profit is O A. $165,800 O B. $104,550 OC. $30,000 7. He borrowed $40,000 at 8 percent a year from the bank. 8. He sold $200,000 worth of landscaping. 9. Normal profit is $30,000 a year. O D. $28,000Match the term and the definition. Provides justifcation for measuring many assets based on their original costs instead of current [1. liquidation values 2. A unit or scale of measurement can be used to measure financial statement eluments 3. The economic life of an enterprise can be divided into artificial time periods for financial reporting 4. All economic events with a particular economic entity can be identified.Problem 11:Hick's Furniture Company (not a real company) sellsindustrial furniture for office buildings. During the current year, the company reported costs of goods soldon its income statement of $1,650,000. The company'sbeginning inventory was $2,750,000, and its endinginventory was $3,825,000 (all in U.S. dollars). What is thecompany's inventory turnover ration for the current year?
- f the following financial information related to XYZ Company. Total Revenues last year $970, depreciation expenses $50, costs of goods sold $450, and interest expenses $55. At the end of the year, current assets were $121 and current liabilities were $107. The company has an average tax rate of 35%. Calculate the net income for XYZ Company by setting up an income statement.Jane quit her job at IBM where she earned $50,000 a year. She cashed in $50,000 in corporate bonds that earned 10% interest annually to buy a minibus. Jane has decided to buy the mini-bus and set up a commuter service between Lincoln and Omaha. There are 1000 people who will pay $400 a year each for the commuter service; $280 from each person goes for gas, maintenance, insurance, and depreciation. She estimates that her entrepreneurial skills would have typically yielded a normal profit of $5,000 in another business. (a) Complete the following questions: (1) What are Jane’s total revenues? (2) What are Jane’s explicit costs? (3) What is her accounting profit? (b) List the important implicit costs that Jane has not included. (c) What is Jane’s pure economic profit (loss)?What is the most important question to consider when determining whether a person is an employee or an independent contractor? Multiple Cholce Who supplies the tools necessary for the job? What skill is required for the Job? How long will the job last? What degree of control does the employer maintain?
- Calculate the equity of the Gravel Construction Company if it has $10 million worth of assets. Gravel has $1.3 million in current liabilities and $2.5 million in long-term liabilities.Determining Gross Profit During the current year, merchandise is sold for $8,100,000. The cost of the goods sold is $4,698,00 a. What is the amount of the gross profit? b. Compute the gross profit percentage (gross profit divided by sales). c. Will the income statement always report a operating income?Chapter 27 Review 14 Sovell Help Save & Exit Subr Shepherd's Homes is evaluating the lease versus the purchase of a machine costing $241,000 that would be depreciated using MACRS over a four- year period, after which the machine would be worthless. MACRS rates are 33.33 percent, 44.44 percent, 14.82 percent, and 7.41 percent for Years 1 to 4. respectively. The machine could be leased for $91,000 per year for four years. The firm can borrow at 5.7 percent and has a tax rate of 21 percent However, the firm does not expect to pay any taxes for the next five years. What is the net advantage to leasing? eBook Multiple Choice References -$76,503 $2,218 $983 $118,718