The following trial balance of jb company at december 31, year five, has been adjusted except for income taxes. the income tax rate is 30%.
dr cr
accounts receivable, net $725,000
accounts payable 250,000
accumulated depreciation 125,000
cash 185,000
contributed capital 650,000
expenses 3,750,000
goodwill 140,000
prepaid taxes 225,000
property, plant, and equipment 850,000
retained earnings, 1/1/year five 350,000
revenues 4,500,000
5,875,000 5,875,000
during year five, estimated tax payments of $225,000 were paid and debited to prepaid taxes. there were no differences between financial statement and taxable income for year five.
included in accounts receivable is $400,000 due from a loyal customer. special terms were granted to this customer to make payments of $100,000 semi-annually every march 1 and september 1.
in jb company's december 31, year five balance sheet, what amount should be reported as current assets?
a) 710,000
b) 910,000
c) 935,000
d) 1,135,000

In a macroeconomic context, what are implicit liabilities? money owed to people possessing government issued bonds. the amount of money that firms collectively owe to shareholders. money that the government has promised to pay in the future. payments that the federal government undertakes only during periods of recession. which of the choices is a significant implicit liability in the united states? military spending education spending national science foundation spending social security

Shrieves casting company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by sidney johnson, a recently graduated mba. the production line would be set up in unused space in the main plant. the machinery’s invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. the machinery has an economic life of 4 years, and shrieves has obtained a special tax ruling that places the equipment in the macrs 3-year class. the machinery is expected to have a salvage value of $25,000 after 4 years of use. the new line would generate incremental sales of 1,250 units per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. each unit can be sold for $200 in the first year. the sales price and cost are both expected to increase by 3% per year due to inflation. further, to handle the new line, the firm’s net working capital would have to increase by an amount equal to 12% of sales revenues. the firm’s tax rate is 40%, and its overall weighted average cost of capital, which is the risk-adjusted cost of capital for an average project (r), is 10%. define “incremental cash flow.” (1) should you subtract interest expense or dividends when calculating project cash flow?

Now ray has had the tires for two months and he notices that the tread has started to pull away from the tire. he has already contacted the place who sold the tires and calmly and accurately explained the problem. they didn’t him because they no longer carry that tire. so he talked with the manager and he still did not get the tire replaced. his consumer rights are being violated. pretend you are ray and write a letter to the company’s headquarters. here are some points to keep in mind when writing the letter: include your name, address, and account number, if appropriate. describe your purchase (name of product, serial numbers, date and location of purchase). state the problem and give the history of how you tried to resolve the problem. ask for a specific action. include how you can be reached.