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jeka94
3 years ago
13

The projections for a new project show sales of 8,500 units, give or take 5 percent. The expected variable cost per unit is $28.

62 and the expected fixed cost is $164,000. The fixed and variable cost estimates are considered accurate within a plus or minus 3 percent range. The depreciation expense is $62,000 and the tax rate is 35 percent. The sale price is estimated at $55 a unit, give or take 2 percent. The company bases its sensitivity analysis on the expected case scenario. What is the operating cash flow for a sensitivity analysis using total fixed costs of $170,000
Business
1 answer:
vitfil [10]3 years ago
8 0

Answer:

$56,950

Explanation:

We will calculate the operating cash flow as follow;

OCF = {[($55 - $28.62) 8,500 ] - $170,000} × (1 - 0.35) + ($62,000 × 0.35)

= {[$224,230] - $170,000} × 0.65 + ($21,700)

= $35,249.5 + $21,700

= $56,950

Therefore, the operating cash flow is $56,950

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The ways you act, think, and feel describe your _____.
Bas_tet [7]
Personality traits... i think

have a good day
4 0
3 years ago
On February 1, a seller paid $1,140 in annual property tax for the current calendar year. He sold the house with the closing set
tigry1 [53]

Answer:

$288

Explanation:

Since the total property taxes for the year are $1,140, to find the property tax per month we have to divide by 12 ⇒ $1,140 / 12 = $95 per month

The seller is responsible for paying the property taxes during 3 months and 1 day, to find out the amount for that 1 day we divide the monthly tax by 30 = $3.17 per day.

the total seller's credit = ($95 x 3) + $3 = $285 + $3 = $288

*The seller's credit includes all the expenses that must be paid by the seller, while the seller's debit includes all the money that he receives.

6 0
3 years ago
Murray Motor Company wants you to calculate its cost of common stock. During the next 12 months, the company expects to pay divi
frozen [14]

Answer:

Cost of retained earnings  = 0.13

Explanation:

given data

(D1) = $1.80

current price = $36  

growth rate = 9 percent

solution

we get here Cost of retained earnings  (Ke) that is express as

Cost of retained earnings = ( D1 ÷ P ) + g    ................1

here P is price and g is growth rate

put here value and we get

Cost of retained earnings =  (1.80 ÷ 36 ) + 0.08

Cost of retained earnings  = 0.13

4 0
3 years ago
Which of the following can result from inflation in the United States?
Semenov [28]

Answer:

b. Investors buy products in other countries.

Explanation:

Inflation causes higher cost of production for manufacturer which then charge high cost for the products. Thus, if there is inflation in US, product cost will skyrocket thus companies will buy products from other countries where the product might be at a cheaper cost.

4 0
2 years ago
Refer to the following table to answer the following questions:
sineoko [7]

Answer:

Following are the answer to this question:

In question first, the answer is "Option d".

In question second, the answer is "Option e".

In question third, the answer is "Option e".

In question fourth, the answer is "Option e ".

In question fifth, the answer is "Option b".

Explanation:

Given values:

Checkable \ deposits =  \$ 400,000,000\\Currency = \$ 340,000,000\\Traveler's \ checks = \$ 4,000,000\\Money \ market \ mutual \ funds = \$ 50,000,000\\Small \ time \ deposits = \$ 6,000,000\\Savings \ deposits = \$ 850,000,000\\

Solution:

  • \text{M1= currency +checkable deposits + travellers check}

    = $400000000+$340000000+$4000000

    = $744000000

\bold{\text{M2 = M1 +money market mutual funds + small time deposit+ saving deposit}}

      =  $744000000 + $50000000+$6000000+$850000000

       = $1,650,000,000

  • Saving account deposits, which means its amount of money increased throughout the M2 portion regular savings account. So M2 will grow  
  • Its increase in the number of employees may not impact the balance sheet with banks, because each bank maintains its entire cash flow
  • For banks, loans are investments if they're lending money as a bank to people. So, it's on income statement asset side
3 0
3 years ago
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