A proposed new project has projected sales of $123,000, costs of $57,000, and depreciation of $12,600. The tax rate is 35 percent. Calculate operating cash flow using the four different approaches. (Do not round intermediate calculations.)

Answers

Answer 1
Answer:Approach 1 ⇒ EBIT + Depreciation - Taxes approach

EBIT = Sales - Costs - Depreciation

= 123,000 - 57,000 - 12,600

= $53,400

EBIT = EBT as no interest in question.

Tax = EBIT * Tax rate

= 53,400 * 35%

= $18,690

Operating cashflow = 53,400 + 12,600 - 18,690

= $47,310

Approach 2 ⇒ Top-down Approach

= Sales - cost - tax

= 123,000 - 57,000 - 18,690

= $47,310

Approach 3 ⇒ Tax-Shield

= (Sales - Cost) * (1 - Tax rate) + (Depreciation * Tax rate)

= (123,000 - 57,000) * (1 - 35%) + (12,600 * 35%)

= $47,310

Approach 4 ⇒ Bottom-up

=  (Sales – Cost – Depreciation) * (1 - Tax rate) + Depreciation

= (123,000 - 57,000 - 12,600) * ( 1 - 35%) + 12,600

= $47,310


Related Questions

what is legislative ​

Answers

Answer:

having the power to make laws

Explanation:

Answer:

having the power to make laws.

A company had net income of $40,000, net sales of $300,000, and average total assets of $200,000. Its profit margin and total asset turnover were respectively:
Select one:
a. 13.3%; 0.2.
b. 13.3%; 1.5.
c. 2.0%; 1.5.
d. 1.5%; 0.2.
e. 1.5%; 13.3.

Answers

Answer:

a. 13.3%; 0.2.

Explanation:

Profit margin can be expressed as a ratio or a percentage. It is also called the gross profit ratio

The formula for gross margin

= net income/ net sales x 100

= $40,000/ $300,000 x 100

=13.33%

The formula for calculating asset turnover ratio is net sales divide by

average total assets.

=Net sales/ average total sales

=$40,000/$200,000

=0.2

Question #3
Multiple Choice
Which of the following is described as the amount by which the value of a country's exports exceeds the cost of its imports? -tariff
-tax excess
-quota
-trade surplus​

Answers

It is a trade surplus

What is the financial advantage (disadvantage) of making the 73,000 starters instead of buying them from an outside supplier

Answers

Answer: Financial advantage of $43,800

Explanation:

The cost to make the starters:

= Direct materials + Direct labor + Variable manufacturing overhead + Supervisor salary

= (6 * 73,000) + (3 * 73,000) + ( 0.6 * 73,000) + (1.90 * 73,000)

= $839,500

Cost to buy them = 73,000 * 12.10

= $883,300

Financial advantage (disadvantage) to making them = 883,300 - 839,500

= $43,800

Rent and depreciation are not relevant to this decision because rent is not directly attributable to this product and depreciation is not based on wear and tear.

A SWOT analysis provides organizational strategists with key information and a realistic assessment and understanding of both the internal and external environments. This activity is important because a SWOT analysis is a useful tool in gathering information about the competitive environment to establish a grand strategy.

The goal of this exercise is to challenge your knowledge of SWOT analysis.
Wrtie down the most appropriate area of the SWOT analysis for each item.


1. The R&D program at the company produces world-class products
2. Our product is targeted to young professionals under 35 years of age. That group is growing.
3. The equipment the company owns is last generation and does not have the latest technology,
4- There have been several up and coming companies that are beginning to enter our market space,
5. Word is that a new highway is being built in the next couple of years. making it easier to transport our products from the factory.
6. The employees who work for us are highly skilled and leaders in their field.
7. Management does not provide a big budget to support the world-class staff that work for the company.
g. The company uses a fair amount of short-term debt financed through the bank. Economic projections indicate that interest rates may rise in the future and credit will be more difficult to obtain

Answers

Answer:

5.    Word is that a new highway is being built in the next couple of years. making it easier to transport our products from the factory.

Explanation:

The operational improvement cycle is referred to as the: a. 5S cycle b. FMEA cycle c. DMAIC cycle d. Generate - Integrate - Interpret - Act cycle

Answers

Answer:

The operational improvement cycle is referred to as the:

c. DMAIC cycle

Explanation:

The DMAIC cycle involves continuous operational improvement.  The 'D' stands for 'to define' the process.  The 'M' stands for ' to measure' or quantify the performance process.  The 'A' stands for ' to analyze' performance to determine root causes.  The 'I' stands for 'to improve; the process.  The 'C' stands for control to achieve benefits.  These processes are the Sigma Six improvement processes that have been proven to yield improved organizational processes.

the area of a rectangle is 600 cm2 and its breadth is two-third of its length find the length and breadth of the rectangle​

Answers

Given:

Area of a rectangle is [tex]600 \text{cm}^2[/tex].

Breadth is two-third of its length.

To find:

The length and breadth of the rectangle​ .

Solution:

Let x cm be the length of the rectangle.

Then, Breadth or width of the rectangle = [tex]\dfrac{2}{3}x[/tex] cm

Area of a rectangle is

[tex]Area=Length \times Breadth[/tex]

[tex]600=x \times \dfrac{2}{3}x[/tex]

[tex]600=\dfrac{2}{3}x^2[/tex]

Multiply both sides by 3.

[tex]1800=2x^2[/tex]

Divide both sides by 2.

[tex]900=x^2[/tex]

Taking square root on both sides.

[tex]\pm \sqrt{900}=x[/tex]

[tex]\pm 30=x[/tex]

Length cannot be negative. So, x=30.

Now,

Length = [tex]30\text{ cm}[/tex]

Breadth = [tex]\dfrac{2}{3}\times 30\text{ cm}[/tex]

             = [tex]2\times 10\text{ cm}[/tex]

             = [tex]20\text{ cm}[/tex]

Therefore, the length of the rectangle is 30 cm and the breadth is 20 cm.

P=$150(1-1/1.03)^10/0.03


The equation above gives the present value,P, of an investment that pays the investor $150 per year for1010years. The present value is the dollar amount that is equal to the series of future payments. If the payments are changed from $150 to $75, what is the effect on the present valueP?

a. the present value stays the same
b. the present value is halved
c. the present value doubles
d. the present value increases by 3%

Answers

Answer: b. the present value is halved

Explanation:

The present value of the investment is based on several things including the future payments. If these payments were to be halved from $150 to $75, the entire present value would be halved as well.

Present Value= 150 * (( 1 - (1 / 1.03) ) ^10) / 0.03

= $1,279.53

Present Value = 75 *  (( 1 - (1 / 1.03) ) ^10) / 0.03

= $639.77

Notice how the present value when the payments are $75 is half that of the present value at $150.

Drag the tiles to the correct boxes to complete the pairs.
Match the HR processes to the activities involved.
m

Answers

Answer:

Explanation:

HR processes involved to activities:

Employee leasing and outsourcing → Recruitment

Organizing orientation programs → Training

Expanding certain departments ans closing down others → right sizing

Providing paid vacation time to employee → designing compensation package

Explanation: Correct On Plato!!!

1. Using materials In the case and items to which you gain access through a search, describe how Aldi is creating competitive rivalry in the retail grocers' industry.

Answers

Answer:

Following are the solution to the given question:

Explanation:

Please find the complete question in the attachment file.

Aldi is a private company and has been found that around half of the mainstream companies are operating costs. In contrast with the rivals, Aldi operates with such a poor gross profit. Besides that, the cart is imprisoned by Aldi. It means that a customer only spends a half and returns their bags after they have been filled. I should note which Aldi only stores 14,000 products in its stocks but doesn't want excessive storage relative to many other retailers. This is a pleasant strategy so because limited choices or easy templates save people some time. Several of the brands are labeled every year with natural foods.

Which situation is better for saving money in a CD (certificate of deposit): the purchasing a car or for use in an emergency? Explain your reasoning.

Answers

Answer:

Emergency

Explanation:

Always have extra money for problems that arise.

Question # 5
Multiple Choice
Which of the following is described as a limit on the quantity of a good produced abroad that can be imported?
- import tax
- quota
- trade surplus
- tariff

ANSWER IS QUOTA!!!​

Answers

I think the answer will be

- QUOTA

g each collectible ship requires one pint of high-quality paint at a cost of $25 per pint. considering increasing the selling prices of both models by 7.5%, which will cause volume of sales for both models to decrease by 12%. all other expenses would remain constant. should management implement this change and what is the best explanation

Answers

Answer:

Increasing the sales price is a bad idea since total revenues will decrease.

Explanation:

The question is incomplete since we are not given the information about other costs, but we are given enough information to calculate the price elasticity of demand:

PED = % change in quantity demanded / % change in price = -12% / 7.5% = -1.6 or |1.6| in absolute terms.

Since the PED is |1.6|, it is price elastic. This means that a change in price will result in a proportionally larger change in quantity demanded. E.g. assume original price is $100 and the original quantity demanded is 100. Total revenue = $10,000. If the price increases to $107.50, the quantity demanded will decrease to 88, resulting in a total revenue of $9,460.

A sole proprietorship, a corporation (Subchapter S and Subchapter C) and an LLC are three common entities that are employed by entrepreneurs when starting a business. When weighing the advantages and disadvantages of these three entities, which do you think is the more advantageous business formation for an entrepreneur? Why? Feel free to suggest an alternate business entity if you so desire, but be specific as to why your choice would be better.

Answers

Answer:

The more advantageous business formation for an entrepreneur is:

A sole proprietorship.

Explanation:

Easy to start and simple to operate is the sole proprietorship, suitable for an innovative entrepreneur.  It provides a better option for a low-risk business, with no additional taxation of income.  Since an entrepreneur creates a new business, bearing most of the risks and enjoying most of the rewards, the sole proprietorship form of business provides the best starting point before he or she can join with others.

Tania really enjoyed the salads sold at her local grocery store, so she purchased five of them to eat throughout the week. The first salad is delicious, and Tania eats it quickly, looking forward to the next one. The second day, the next salad is also good. By the third day, some of the ingredients in the next salad are starting to go bad, and by the fourth day, Tania cannot bring herself to eat any more and throws away the remaining salads. Which statement would be unlikely in economic terms?

a. Tania achieved utility maximization with her purchase of five salads.
b. Tania would achieve higher marginal utility by eating something other than the fourth salad.
c. Tania would achieve higher marginal utility if she purchased fewer salads.
d. Tania's marginal benefit was higher for the first two salads than the third and fourth.

Answers

Answer:

a. Tania achieved utility maximization with her purchase of five salads.

Explanation:

Maximising individual satisfaction is the main aim in an economy.

Utility is a measure of the degree of satisfaction that a person gets from consuming a good.

In the given scenario Tania bought 5 salads and enjoyed only 2. She had to throw away the remaining because of spoilage.

In economic terms she would have been better of purchasing fewer salads for example if she only did 2 salads her utility will be maximised.

She is also better off consuming something else than the fourth salad. She derived no satisfaction from the fourth salad as she had to throw it away.

As she enjoyed the first two salads her marginal utility is higher with them than for the ones she did not consume.

However to state that she achieved maximum utility with purchase of the 5 salads is wrong because she only consumed 2 and had to throw the rest away

A newly formed firm must decide on a plant location. There are two alternatives under consideration: locate near the major raw materials or locate near the major customers. Locating near the raw materials will result in lower fixed and variable costs compared to locating near the market, but the owners believe there would be a loss in sales volume because customers tend to favor local suppliers. Revenue per unit will be $179 in either case. Revenue per unit will be $183 in either case. Using the following information, determine which location would produce the greater profit.

Omaha Kansas city
Annual fixed costs ($ millions) $1.2 $1.4
Variable cost per unit $36 $47
Expected annual demand (units) 8,000 12,000

Answers

Answer:

locate near the major raw materials

Explanation:

Discuss the causes of changes in a currency swaps value over time. Is it possible to close out a currency swap before it reaches maturity

Answers

Answer: When a swap is agreed on by both parties involved, a cash flow of bonds in different currencies are agreed upon to be exchanged.

Explanation:

The cash flows of two bonds in separate currencies are negotiated upon to be traded when a swap is initiated. At the existing spot exchange rate, these bond-like cash flows have the same present value. Evidently, shifts in the exchange rate change the value of one side of the swap relative to the value of the other side of the swap. Furthermore, interest rate rises reduce the present value of currency.

The current value of cash flows is increased by flows and decreases in interest rates. Changes in interest rates and exchange rates thus offer meaning to currency swaps.

One side is triumphant and the other loses. By making the party that lost money in the swap pay this amount to the party that has gained value in the swap, it is possible to close a swap.

The following citation is for a page on a Web site. Identify the error in the citation.

Answers

What error? Where’s the picture? What’s the problem? Going Crazy Here

The TSA suits:
A.
Engineering students.
B.
Construction students.
C.
Technology students.
D.
STEM students.

Answers

Answer:

STEM Students - TSA focuses on all areas of stem, not just technology.

Explanation:

got it correct

If Mariette does not want to track the quantity on hand of the products she sells, what Product/Service type should she select when setting up the items she sells in QuickBooks Online?

Answers

Answer: a. Non-inventory

Explanation:

QuickBooks online is an accounting software that helps millions of small and medium businesses.

If Mariette does not wish to track the quantity of the products she sells on hand, she should set these items up as Non-inventory items.

This designation is usually for goods that are immediately sold when purchased or were sold without even being purchased which means its for goods with really short shelf lives.

True or False: The date line of a balance sheet depicts a specific day and not a period of time.

Answers

The answer is true, hope that helps!!

True or False: As players age, they generally experience a decline in performance, making their prospects of signing a lucrative free agent contract less likely.

Answers

Answer: True

Explanation:

As players age in most sports be it soccer, baseball, basketball and American football, their performance experiences a decline as their muscles get older. Its simply biological.

At this point, the players will no longer command the high prices they used to command as they would only contribute less to the success of the team. This means that their prospects of signing a lucrative free agent contract definitely becomes less likely.

Answer:

true

Explanation:

Assume the following information from a schedule of cost of goods manufactured: Cost of goods manufactured $ 158,000 Beginning work in process inventory $ 26,800 Direct materials used in production $ 50,000 Manufacturing overhead applied to work in process $ 90,000 Total manufacturing costs added to production $ 200,000 What is the ending work in process inventory

Answers

Answer:

$68,800

Explanation:

Calculation for What is the ending work in process inventory

Using this formula

Ending work in progress = Beginning work in progress + Total manufacturing cost added to production - Cost of goods manufactured

Let plug in the formula

Ending work in progress =$26,800+$200,000-$158,000

Ending work in progress=$68,800

Therefore the ending work in process inventory will be $68,800

When a process is in control, it results in there being, on average, 16 defects per unit of output. c-chart limits of 8 and 24 would lead to a

Answers

Answer:

4.56%

Explanation:

From the given information:

In a c-chart limit

UCL = [tex]\bar c+ z \times \sqrt{\bar c }[/tex]

where;

[tex]\bar c = 16[/tex]

UCL = 24

Then:

[tex]24 = 16 + z \times \sqrt{24}[/tex]

[tex]24 -1 6 = z \times \sqrt{24}[/tex]

[tex]8 = z \times 4.89[/tex]

[tex]z = \dfrac{8}{4.89}[/tex]

z [tex]\simeq[/tex] 2.0

At z = 2.0, the value represents the probability of 95.44% of not making a Type 1 error.

This implies that the probability of making a Type 1 error = 1 - 95.44%

= 4.56%

what are the effects of inflation on the prices of goods and services? ​

Answers

Answer:

When prices for energy, food, commodities, and other goods and services rise, the entire economy is affected. Rising prices, known as inflation, impact the cost of living, the cost of doing business, borrowing money, mortgages, corporate, and government bond yields, and every other facet of the economy.

Answer:

When prices for energy, food, commodities, and other goods and services rise, the entire economy is affected. Rising prices, known as inflation, impact the cost of living, the cost of doing business, borrowing money, mortgages, corporate, and government bond yields, and every other facet of the economy.

Explanation:

The net decrease in Prepaid Expenses (Prepaid) amounts to $30,000 and the net decrease in Accounts Payable (AP) is $20,000. Assuming no inventory provision involved, what is the net effect of Inv and AP on the adjustments to Net Income if the indirect method is used in the Statement of Cash Flows

Answers

Answer:

Net decrease in prepaid expenses of $30,000 will be added to the net income in adjustments to net income because it will be considered that working capital (inventory or any other expense) has been generated by the operations.

Net decrease in Accounts payable of $20,000 will be deducted from net income in adjustments to net income because decrease in accounts payable means that cash has been paid to the outstanding payables.

Net effect of the above transactions is $30,000 - $20,000 = $10,000

So, net income will be increased by $10,000 as net effect of the above adjustments.

Countries often use various government regulations to manipulate the amount of goods and services imported from other countries. This activity is important because it will help you to understand the effects of trade protectionism on the overall international trading atmosphere.

Required:
Challenge your knowledge of the different types of international trade barriers.

Answers

Answer:

Solar ⇒ Tariffs

Tariffs are taxes on imported goods such that their prices are increased so that the domestic producers of that good can be able to compete with the imports which is the case here.

Numbers ⇒ Import Quotas

Import Quotas refer to limits on the amount of imports into a country. When the imports reach a certain amount they will be no more imports for the year.

Aluminium ⇒ Import Quotas

By only allowing a certain number of sheets to come into the country the US has imposed an import quota on the metal as per the definition above.

Materials ⇒ Embargoes and Sanctions

Embargoes and sanctions limit the trade of goods and services to the country under sanctions or being embargoed. Here the US will not ship goods to North Korea as they are under sanctions for their nuclear program.

Prohibition ⇒ Embargoes and Sanctions

This scenario describes an embargo which means that there is a ban on trade of certain goods and services with the nation under embargo.

Imports ⇒ Tariffs

Customs duties are taxes on imports which therefore makes them tariffs.

In early 2018, selected automobiles had an average cost of $20,000. The average cost of those same motor vehicles is now $24,000. What was the rate of increase for this item over this time period

Answers

Answer:

20%

Explanation:

Calculation for What was the rate of increase for this item over this time period

Using this formula

Rate of increase= (Ending avarage cost − Beginning avarage cost )/ Beginning avarage cost

Let plug in the formula

Rate of increase= ($24,000 − $20,000) / $20,000

Rate of increase= $4,000/$20,000

Rate of increase= 0.2*100

Rate of increase= 20%

Therefore the rate of increase for this item over this time period is 20%

an effective annual interest rate of 12.95% how many years will it take a given amount to Triple in value

Answers

Answer:

Number of year n = 9 year (Approx)

Explanation:

Given:

Effective annual interest rate = 12.95% = 0.1295

Find:

Number of year n

Assume;

Invested = P

Amount = 3P

So,

3P = P(1+0.1295)ⁿ

3 = 1.1295ⁿ

n = 9

Number of year n = 9 year (Approx)

Measure the angle in degrees.

Answers

Answer:

45°

Explanation:

If you look at it since the is backward due to the angle 180 would represent 0 and the 140 would be 40 so it is between the 140 and 130 marks so it is 45°.

Other Questions
Determine whether the relation is a function. Explain. {(3, 9), (4, 8), (7, 4), (0, 4), (2, 4), (3, 5), (3, 8)} a. Yes, each x-value is paired with exactly one y-value. b. No, there is a y-value paired with more than one x-value. c. No, there are no negative y-values. d. No, there is an x-value paired with more than one y-value. -4(-6 + 2) =A)-16B)-32C)-8D)16 AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA this is extra cedit in my class and i need it, can anyone help me out?? please help homework. ignore the green that's just pre algebra above From 1997 - 2001 the number n (in millions) of black-and-white TV S sold in the U.S. Can be modeled by n = 26.8 * (0.85) ^ t where t is the number of years since 1997. The chair of the operations management department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are in control with regard to the number of students who fail the course. Accordingly, he sampled 100 final grades from last year for each instructor, with the following results Instructor Number of Failures Prof. A 13 Prof. B 0 Prof. C 11 Prof. D 16 What are the .95 (5 percent risk of Type I error) upper and lower control limits for the p-chart Personality is used to represent howand ________one's ______ behavior is.A. consistent ... uniqueB. abnormal ... inconsistentC. unique ... dysfunctionalD. eccentric ... consistent a stone is thrown vertically upwards with an initial velocity of 20 metre per second find the maximum height it reaches and the time taken by to reach the height( g =10m/s) can Someone help me with this math problem Mary pays $72 for sand. If the cost per pound is $0.45, how many pounds did she purchase? HELP PLZ I WILL GIVE BRAINLIEST!!! Write the prime factorization of 675 using exponents. What is the domain of f? Describe the relationship between Unoka and okonkwo. How does this relationship motivate Okonkwo? What theme is beginning to emerge based on the relationship between Okonkwo and Unoka? Which cube is a unit cube?A cube that is 7 feet long, 7 feet tall, and 7 feet highB a cube that is 1 meter long, 1 meter wide, and 1 meter highC a cube that is 5 inches long, 5 inches wide, and 5 inches highD a cube that is 15 centimeters long, 15 centimeters wide, and 15 centimeters high During the summer, the height of the water in a pond decreases by 2 inches per day due to evaporation. What is the change in the height of the water after 12 days? I NEED HELP PLZ ANSWER THIS how did the Nile river influence ancient Egypt crop schedule Reserved powers are NOT found within the ______________________. whats the sentence as an equation? 107 fewer than u is 191 F= 1.8C + 32. Answer choice-a. 33.8b. 45c. 77d. 58.8Please help