Distinguish among accounting profit, economic profit, and normal profit. What does it mean for a firm to be suffering an economic loss? Does this imply that the firm is earning negative profit in the accounting sense? Explain. Answer to:...
In this scenario, gross profit is an approximation for Real Revenue shown in the chart. These two numbers should be reasonably close if your business is healthy. If it is not, stop right now and work on your business. It's too early to quit your day job. Here is the math for a ...
Answer to: A firm's Net Working Capital (NWC) should ideally be positive, but can be negative. When is a firm's NWC negative, and why is this...
“If you don’t qualify for the home sale exclusion, or the profit from your home sale is greater than the exclusion amount, the tax rate that applies to your taxable profits depends on how long you owned the home. If you owned it for one year or less, the same tax rates ap...
Before a project is considered successful, its profitability needs to be considered. Job costing tracks and analyzes all project costs which helps with accurate cost tracking. As a result, project stakeholders can calculate the totalproject cost, determine the gross profit and determine the profit ma...
Rachel has a target of working for 15 more years until her youngest son graduates college. Once both kids are through college, this will free up roughly $200,000 a year in after-tax children related expenses, which is equivalent to roughly $333,300 in gross income based on their 40% eff...
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greater than 1, it has a higher volatility than the market. If it has a beta less than 1, its volatility is less than that of the market. Beta can also be negative, though this is not very common. If beta is negative, it means the stock moves in the opposite direction of the ...
The safest option to avoid an underpayment penalty is to aim for "100 percent of your previous year's taxes." If your previous year's adjusted gross income was more than $150,000 (or $75,000 for those who are married and filing separate returns last year), you will have to...
(if applicable) and two years of tax returns. Some lenders may ask you to fill out Internal Revenue Service Form 4506-T, which is a request for a “Transcript of Tax Return.” In addition to tax returns, business bank account statements, business profit and loss statements, 1099s, or ...