Introduction
The overall study report has analysed the financial statements of Bizrate electronics. Bizrate electronics incorporation is well known organisation of United States that supplies and manufactures all kinds of electronic appliances in not only the parts of United States but also in other major countries. The company financial statements provides an overall analysis of the company performance. Further from the analysis of balance sheet, income statements and other financial reports helps to provide detailed analysis of the current performance of the company. From this analysis the company is able to know what lacks in their operation and how they can improve the business overall (Töyli et al.,2013).
Discussion
A corporation is a separate entity from the owners in terms of the income tax. Therefore, being a separate entity, the corporate owners does not pay the income tax to the employees. However the corporates pay the tax money by filling an overall corporate tax return value in the form of 1120. Therefore Bizrate Electronics Company had implied the tax value in terms of return as well as the personal tax rate value.
With effective from the year 2018, as per tax cuts and job act of 2017 it has decreased the overall corporate tax rate by 21 percent. Further it is also seen that the rate of corporate tax returns are subjected to change percentage.
On the other hand the change in the corporate tax returns, a blended rate might need to be applied in the way of the income tax return. Therefore it can be said that if the taxable income of Bizrate electronics are beginning form the month of January 2018, then it can be said that the company’s overall taxable income is changed to $635 approximately and overall taxable amount calculated in the current year is calculated at $133277.
Corporate income tax due as per form no 1120
It is important that the company files the income tax as per form no 1120 within the given date of 15th to 3rd month of December. Thus Bizrate electronics company must also need to provide the overall income tax valuation by the given date or next business day. Therefore this article related to the process is levied on the due tax date of the current year (Töyli et al.,2013)
Overall information related to the US tax form 1120
As per the tax form named 1120, it can be said that overall tax return value in form of income tax is used to report the corporate changes as per IRS. Therefore the form 1120 also plays an important part to report the overall changes in the income. On the other hand the Bizrate electronics had also elected the process to be taxed in the way of implementing effective taxable income. Thus form no 1120 is used only to file the income tax return value as per the corporate value (Palepu & Healy 2013).
Hence the company needs to file the income tax as per form no 1120-S.
Main information related to the payment of tax. Therefore the information which is required to be adding an extra value to this case is related to the general outline relating to the form of the business. On the other hand Bizrate Corporation needs to incorporate tax where all the details are available. Hence it can be said that every business have their own uniqueness. Therefore it is important to review that the form 1120 to use the information related to the process (Palepu et al.,2013).
Section1: The overall information is related the corporation which includes name, address, employer ID, incorporation, and total information related to the assets value etc. (Gode & Ohlson 2013).
Section 2: From the second section in the form it is seen that factors like gross receipts, cost of goods sold, dividends, rate of interest and the capital gains will incorporate the change in financial statements overall.
Section 3: This section includes that the financial statements includes the company needs to have all the information related to this aspect. These are considered as additional expenses like compensation, other salaries and wages, repairs and mantainence, bad debt, rent, taxes and licencing process (Francis et al.,2013).
Section 4: This section of form 1120 includes tax payment, other refundable credit payments etc. on the other hand the overall tax incomes, tax schedule and tax credit valuation is related to the business overall. However there are some other sub schedules which are also related to this process. For example section A relating to cost of goods sold and section C related to the dividend payment. Thus the financial statements of Bizrate electronics are also linked to form no 1120 (Crowther 2018).
Conclusion
The conclusion, which can be drawn, is that before making the potential business investment it is needed for the company to understand the financial statement in that case. Some of the other factors in that case are needed to be considered for the purpose of analysing the key business requirements involved in that case. The revenue recognition along with the implication of the key principles, which is involved with the business, must be identified in that case. The management system of the company must evaluate the key business parameters involved with the business.
References
Coates IV, J. C. (2014). Cost-benefit analysis of financial regulation: Case studies and implications. Yale LJ, 124, 882.
Crowther, D. (2018). A Social Critique of Corporate Reporting: A Semiotic Analysis of Corporate Financial and Environmental Reporting: A Semiotic Analysis of Corporate Financial and Environmental Reporting. Routledge.
Francis, J. R., Pinnuck, M. L., & Watanabe, O. (2013). Auditor style and financial statement comparability. The Accounting Review, 89(2), 605-633.
Gode, D., & Ohlson, J. (2013). Financial Statement Analysis and Valuation. Retrieved December, 28, 2014.
Palepu, K. G., & Healy, P. M. (2013). Business analysis and valuation: Using financial statements, text and cases.
Palepu, K. G., Healy, P. M., & Peek, E. (2013). Business analysis and valuation: IFRS edition. Cengage learning.
Töyli, J., Lorentz, H., Ojala, L., Hofmann, E., & Lampe, K. (2013). Financial statement analysis of logistics service providers: ways of enhancing performance. International Journal of Physical Distribution & Logistics Management.
Töyli, J., Lorentz, H., Ojala, L., Hofmann, E., & Lampe, K. (2013). Financial statement analysis of logistics service providers: ways of enhancing performance. International Journal of Physical Distribution & Logistics Management.
