Emily Lim owns and runs an ice cream parlor in San Diego. Last year, she had sales of $530,000 and an average tax rate of 33%. She spent $53,000 on ingredients, $26,500 on utilities, and $95,400 to rent the premises. Emily has a few employees and paid them $106,000 in wages in total. She also paid herself a salary of $79,500 and spent $53,000 to pay for employee benefits. A few years ago, Emily borrowed money to buy the ice making equipment. Last year, she paid $26,500 in interest on that loan. Depreciation for the equipment was $15,900. What was operating income (EBIT) for the year? What was net income for the year?

Julie started her first job a year ago and called to ask about her 401k which already has a balance of $9,437.00 as of today.  She is now 25 years old and is making 75k a year living in So California.  She was auto enrolled into her 401k contributing 6% with a 4% match.  Her employer also contributes a profit-sharing contribution of an additional 3% of salary into the retirement account.  If she works till age 65, how much will she have in her 401k if her investments earn a 6% average rate of return?  She has a surplus of income right now, so she is thinking of adding another 6% in addition to her current 6% contribution for a total contribution of 12% from her.  The employer would still contribute the 4% match and the 3% profit sharing into her 401k.  How much would she have at age 65 if she contributed at this higher amount?  What would the difference be if she earned 7% instead of 6% in both previous scenarios? For this problem you should have 4 answers when you are done. Two with…

18. Peggy is an executive for the Tan Furniture Manufacturing Company. She purchased furniture from the company for $9,500, the price Tan ordinarily would charge a wholesaler for the same items. The retail price of the furniture was $12,500, and Tan's cost was $9,000. The company also paid for Peggy's parking space in a garage near the office. The parking fee was $600 for the year. All employees are allowed to buy furniture at a discounted price comparable to that charged to Peggy. However, the company does not pay other employees' parking fees. Peggy's gross income from the above is: a. $0. b. $600. c. $3,500. d. $4,100. e. None of a-d is correct

You have decided to start a landscaping business in Rogers Arkansas (you reside in this city). You purchased a used truck for $9,000-and the necessary landscaping tools. During the month of May you charged and collected $6,000 for services rendered (all landscaping jobs were within the city limits of Rogers). Answer the following questions: 1. What amount of sales tax are you required to pay for the used truck you purchased? 2. How much sales tax should you have collected for services rendered?

Ganja Motors is a small car dealership. On average, it sells a car for $54,000, which it purchases from the manufacturer for $46,000. Each month, Ganja Motors pays $96,400 in rent and utilities and $136,000 for salespeople’s salaries. In addition to their salaries, salespeople are paid a commission of $1200 for each car they sell. Ganja Motors also spends $26,000 each month for local advertisements. Its tax rate is 40%.   How many cars must Ganja Motors sell each month to break even? Ganja Motors has a target monthly net income of $102,000. What is its target monthly operating income? How many cars must be sold each month to reach the target monthly net income of $102,000?

Jennifer Buffett is a 33-year-old recent MBA graduate. She has been working since she was 18 and has seen her annual salary grow from $20,000 to $90,000 gross, over the span of 15 years. She rents an apartment and does not own any real estate. Her monthly living expenses are $4,000, including her $200 per month car payment and $700 per month student loan payment. She has no other debt and has savings totaling $50,000. She plans to get married next year and start a family of two children. She works as a marketing manager in a medium-size cosmetics company in Texas. What is Jennifer’s expected risk tolerance? Please, clearly characterize her risk tolerance and justify your response. What is Jennifer’s expected return requirements? Please justify. What possible constraints might Jennifer have for her investment decision? Please justify your response.

Gomez runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent of $5,000 for his shop, and spends $20,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) that could earn him$4,000 per year if alternatively invested. He has been offered $15,000 per year to work as a potter for a competitor. He estimates his entrepreneurial talents are worth $3,000 per year. Total annual revenue from pottery sales is $72,000. Calculate the accounting profit and the economic profit for Gomez’s pottery firm.  d. How much is the total implicit cost? (Use a whole number, no currency, no comma, no space) e. How much is the economic profit? (Use a whole number, no currency, no comma, no space)

Ken is a self-employed architect in a small firm with four employees: himself, his office assistant, and two drafters, all of whom have worked for Ken full-time for the last four years. The office assistant earns $31,800 per year and each drafter earns $41,800. Ken’s net earnings from self-employment (after deducting all expenses and one-half of self-employment taxes) are $351,800. Ken is considering whether to establish a SEP plan and has a few questions. Assume that all the employees are at least 21 years old. If Ken is required to contribute for his employees and chooses to contribute the maximum amount, what is the maximum amount Ken can contribute for himself? (Hint: Calculate the employee amounts first.) Ignore any changes in Ken’s self-employment tax.

Garth Grits works as an employee at Superior​ Foods, a local supermarket. As an​ employee, Garth earns ​$17 per hour and works 200 hours per month. Garth currently supplements his income with the interest he earns from having $30,000 in a savings account earning​ 5% annual interest. Instead of continuing to work for Superior​ Foods, Garth would like to start up his own dollar store called​ Just-a-Buck located in a strip mall close to his home. If Garth starts up​ Just-a-Buck, he would quit his job working for Superior​ Foods, and he would work​ full-time (200 hours per​ month) in his new business. To set up​ Just-a-Buck, Garth would have to use his ​$30,000 savings to buy the necessary equipment and make the appropriate renovations to the mall space he plans to rent. Garth hired an accountant who estimated the annual revenue and costs of​ Just-a-Buck as​ follows: Annual Store Sales ​$175000 Less Annual​ Expenses:   Mall Rent​ (includes utilities) ​$10000 Cost of…