Happy Nails Is a Locally Owned Nail Salon That Is

question 11

Multiple Choice

Happy Nails is a locally owned nail salon that is in its first year of business. The nail salon employs 8 nail technicians that are
$31,250 each and the owner's is paid $75,000. If the owner did not own Happy Nails, she would work for a competitor for $85 the beginning of the year, the building and the salon equipment are worth $100,000 and at the end of the year, they are worth The accountant for Happy Nails uses straight- line depreciation for the 15- year life of the building and salon equipment. The table above provides some additional information on revenue and the opportunity cost of using the building and equipment.
-Refer to the table above. What is the value of A?

• A)$62,500
• B)$250,000
• C)$312,500
• D)$31,250

Calculate capital spending and the impact on company financials.

Compute tax obligations based on different types of income across various provincial tax systems.

Understand and apply the principles of tax calculation for different income levels and categories.

Calculate and analyze net working capital changes over a period.

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Definitions:

Cash Dividend

A payment made in cash to shareholders that is derived from a company's profits or reserves.

Times Interest Earned Ratio

A financial metric assessing a company’s ability to meet its interest obligations from its operating income.

Income Tax Payments

Income tax payments are the amounts of money a company or individual must pay to the government, based on the income earned over a tax period.

Interest Expense

The cost incurred by an entity for borrowed funds, reflecting the interest payments on debts.