Taft Corporation operates primarily in the United States. However, a few years ago, it opened a plant in Spain to produce merchandise to sell there. This foreign operation has been so successful that during the past 24 months the company started a manufacturing plant in Italy and another in Greece. Financial information for each of these facilities follows: Spain Italy Greece
Sales $ 175,000 $ 600,000 $ 450,000
Intersegment transfers 0 100,000 60,000
Operating expenses 172,000 206,000 190,000
Interest expense 16,000 29,000 19,000
Income taxes 67,000 19,000 34,000
Long-lived assets 91,000 150,000 100,000
The company’s domestic (U. S.) operations reported the following information for the current year:
Sales to unaffiliated customers $ 4,500,000
Intersegment transfers 427,000
Operating expenses 2,410,000
Interest expense 136,000
Income taxes 819,000
Long-lived assets 2,200,000
Taft has adopted the following criteria for determining the materiality of an individual foreign country:
Calculate sales to unaffiliated customers within a country and as a percent of the consolidated sales.
Calculate long-lived assets within a country and as a percentage of the long-lived assets.
Apply Taft’s materiality tests to identify the countries which are 10 percent or more of consolidated sales or consolidated long-lived assets to be reported separately.

During the first month of operations, martinson services, inc., completed the following transactions: jan 2 martinson services received $65,000 cash and issued common stock to the stockholders. 3 purchased supplies, $1,000, and equipment, $12,000, on account. 4 performed services for a customer and received cash, $5,500. 7 paid cash to acquire land, $39,000. 11 performed services for a customer and billed the customer, $4,100. martinson expects to collect within one month 16 paid for the equipment purchased january 3 on account. 17 paid for newspaper advertising, $600. 18 received partial payment from customer on account, $2,000. 22 paid the water and electricity bills, $430. 29 received $2,600 cash for servicing the heating unit of a customer. 31 paid employee salary, $2,900. 31 declared and paid dividends of $1,800. requirements 1. record each transaction in the journal. key each transaction by date. explanations are not required. 2. post the transactions to the t-accounts, using transaction dates as posting references. label the ending balance of each account bal, as shown in the chapter. 3. prepare the trial balance of martinson services, inc., at january 31 of the current year. 4. mark martinson, the manager, asks you how much in total resources the business has to work with, how much it owes, and whether january was profitable (and by how much)?

Aggart technologies is considering issuing new common stock and using the proceeds to reduce its outstanding debt. the stock issue would have no effect on total assets, the interest rate taggart pays, ebit, or the tax rate. which of the following is likely to occur if the company goes ahead with the stock issue? a. the roa will decline.b. taxable income will decline.c. the tax bill will increase.d. net income will decrease.e. the times-interest-earned ratio will decrease

Which external factor has enabled addition of special effects in advertisements and tracking of responses of customers over websites?