Answer:
Hence, the annual operating cash flow is: $44860
Explanation:
Year 0 Year 1
Initital investment
Inflows $253,100
variable costs ($140,000)
fixed cost (53800)
Depreciton ($23,200)
Interest expense ($19,500)
Net cash inflows $16600
Tax at 40% ($6640)
Net Cashinflows after tax $9960
Add Depreciation $23,200
Interest net of tax $11.700
Operating cashflows $44860
Hence, the annual operating cash flow is: $44860
Answer:
29,200 units
Explanation:
The computation of new break even point is given below:-
= Fixed Cost ÷ Contribution per unit
Fixed cost
= $625,000 + $105,000
= $730,000
Variable cost per unit = 50% of selling price
= $25
So, the break even point = $730,000 ÷ 25
= 29,200 units
Therefore for calculating the break even point we simply divide the $730,000 from 25 per unit variable cost.
Answer: A. costs of moderate inflation are nearly zero whereas high inflation is quite costly.
Explanation:
Economists generally believe that moderate inflation is actually good for the economy as prices need to increase in a healthy manner overtime in order to drive consumption. This means that to them, the cost of moderate inflation is nearly zero.
This is a sharp contrast to high inflation which most economists generally believe to be costly as it reduces the savings of people as well as their real wages and welfare.
Answer:
$62,750
Explanation:
The computation of budgeted net income is shown below:-
Budgeted income = (Contribution Margin × Units produced and sold ÷ Units) - Manufacturing costs - Selling and administrative costs
= ($118,800 × 25,000 ÷ 27,000) - $29,700 - $17,550
= $110,000 - $29,700 - $17,550
= $62,750
Therefore for computing the Budgeted income we simply applied the above formula.
Answer & Explanation:
"Pays as agreed" is a term you want to see on your credit report. It simply means you have been repaying a debt according to the agreement between you and the lender or creditor.
