Operating expenses problem
Tonga Industries reported the following:
Net Sales $450,000 Cost of goods sold $360,000
Operating expenses $60,000 Tax Rate 40%
The net income is:
A. $180,000.
B. $ 30,000.
C. $ 18,000.
D. $ 12,000
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Hercules Exercising Equipment Co. purchased a computerised measuring device two years ago for $60,000. The equipment has been depreciated on a straight-line basis over a six year useful life and can currently be sold for $23,800.
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After visiting several automobile dealerships, Richard Welch selects the car he wants.What is the total interest on Richards loan.
Describe how a business can maximize the relationship among these three.
Do you think this an accurate statement on the loan request process? What other considerations or information likely are part of the decision-making process by the bank?
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