If the time between the pretest and the posttest is very short, then

Vasudevan Inc. recently reported operating income of $2.90 million, depreciation of $1.20 million, and had a tax rate of 40%. Th

babymother [125]

Answer:

2.34 million

Explanation:

Vasudevan incorporation reported an operating income of $2.90 million

The depreciation is $1.20 million

The tax rate is 40%

= 40/100

= 0.4

The firm's expenditure on fixed assets and net operating working capital is $0.6 million

Therefore, the free cash flow can be calculated as follows

Free cash flow= operating profit-tax+depreciation-expenditure

= 2.90-(2.90×0.4)+1.20-0.6

= 2.90-1.16+1.20-0.6

= 2.34

Hence the free cash flow is 2.34 million

4 0

3 years ago

An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 21% and a standard devi

irakobra [83]

Answer:

A) 29%

Explanation:

W= (.14-.05)(.39^2)-(.21-.05)(.20)(.39)(.4)

(.14-.05)(.39^2)+(.21-.05)(.20^2) - (.14-.05+.21-.05)(.20)(.39)(.4)

B = 71% A =1-0.71= 29%

σ2rp = (.292)(.392) + (.712)(.202) + 2(.29)(.71)(.39)(.20).4

σ2rp = .045804

σrp = 21.4%

3 0

3 years ago

Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17, 2016. The units have a list

Furkat [3]

Answer:

a. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2021, assuming that the gross method of accounting for cash discounts is used.

November 17, 100 units sold to Thomas Company, terms 2/10, n/30

Dr Accounts receivable 42,000

Cr Sales revenue 42,000

November 26, invoice collected from Thomas Company

Dr Cash 41,160

Dr Sales discounts 840

Cr Accounts receivable 42,000

b. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2021, assuming that the gross method of accounting for cash discounts is used.

November 17, 100 units sold to Thomas Company, terms 2/10, n/30

Dr Accounts receivable 42,000

Cr Sales revenue 42,000

December 15, invoice collected from Thomas Company

Dr Cash 42,000

Cr Accounts receivable 42,000

c. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2016, assuming that the net method of accounting for cash discounts is used.

November 17, 100 units sold to Thomas Company, terms 2/10, n/30

Dr Accounts receivable 41,160

Cr Sales revenue 41,160

November 26, invoice collected from Thomas Company

Dr Cash 41,160

Cr Accounts receivable 41,160

6 0

3 years ago

The following balances were taken from the books of Crane Corp. on December 31, 2020. Interest revenue $87,000 Accumulated depre

Lostsunrise [7]

Answer:

Net Income 212,800

EPS: 2.128=2.13

Explanation:

The Interst and earthquake are not resutl from the main activity of the business so are calcualted as non-operating and losses.

Sales revenue 1,381,000

Sales discounts (46,000)

Sales returns and allowances (151,000)

Net Sales 1,184,000

Cost of goods sold (622,000)

Gross Profit 562,000

Selling expenses (195,000)

Administrative

and general expenses (98,000)

Operating Income 269,000

Non Operating Income

Interest revenue 87,000

Interest expense 61,000

Loss from

earthquake damage (151,000)

Net Non-Operating (3,000)

Income before taxes 266,000

Income tax expense (53,200)

Net Income 212,800

Earning Per Share: 2.13 (212,800/100,000)

8 0

4 years ago

Motor Sports, Inc., sues A-Z Speed. Motor Sports alleges that A-Z breached (failed to perform) a contract that required A-Z to s

miv72 [106K]

Answer: documents in A-Z's possession relating to the contract.

Explanation:

In the law of common law jurisdictions, discovery is a procedure that occurs before the trial takes place. A party, in this case Motor Sports, can acquire documentation from the other party, which is A-Z Speed, by means of discovery devices. These documents can then serve as evidence of the terms of the contract that both parties agreed to, as well as the breach of said contract by one party (A-Z Speed).

5 0

3 years ago