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likoan [24]
4 years ago
5

Carmichael Company is considering purchasing a piece of equipment for $60,000. It expects the equipment will last 12 years (and

will then be worthless) and each year will generate $7,200 net income before taxes. Carmichael’s tax rate is 21%. What would be Carmichael’s expected before-tax cash flow if it purchased this asset?
Business
1 answer:
nalin [4]4 years ago
4 0

Answer:

Initial outlay = $60,000

Annual net income before tax = $7,200 per annum

Depreciation = <u>Cost - Residual value</u>

                        Estimated useful life

                      = <u>$60,000 - 0</u>

                           12 years

                     = $5,000 per annum

Annual net cashflow before tax

= Annual net income before tax + Depreciation

= $7,200 + $5,000

= $12,200

Explanation:

In this case, the annual net income before tax has been given. The annual net income before tax has excluded depreciation, which does not involve movement of cash. Therefore, we need to add back depreciation in order to obtain the expected before tax cashflow.

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Molly, a successful real estate salesperson, took some time off to stay at home with her first child. Days turned into weeks, we
Mariana [72]

Answer:

No

Explanation:

A licensing agreement is a partnership between an intellectual property rights owner (licensor) and another who is authorized to use such rights (licensee) in exchange for an agreed payment (fee or royalty).

Molly cannot simply pick up where she left off because two years after the license expires, all license rights lapse. Molly must re-qualify through the examination process before being licensed in real estate once again.

7 0
4 years ago
On June 1, 2017, Windsor, Inc. was started with an initial investment in the company of $22,420 cash. Here are the assets, liabi
vfiekz [6]

Question Completion:

Prepare an Income Statement for the month of June.

Answer:

Windsor, Inc.

Income Statement for the month ended June 30, 2017:

Service Revenue                  $7,730

Supplies expense    1,100

Maintenance and

  repairs expense     700

Advertising expense 400

Utilities expense       200

Salaries and

 wages expense    1,630   $4,030

Net Income                         $3,700

Explanation:

Windsor, Inc. Income Statement is where the revenues and expenses are summarized in order to arrive at the net income or profit of the business.  Temporary accounts are closed to the income statement.  These are accounts that are periodic in nature.  They are not permanent accounts, which are transferred to the next period.  The only element of the income statement that is taken to the balance sheet is the net income or loss.

3 0
4 years ago
A.
Andre45 [30]

Answer: You will lose five hours of study time

Explanation:

Trade off simply refers to a situational decision that has to do with the loss of one thing in order to gain something else. It simply means compromising something for another thing.

To earn the most pay, the trade-off will simply be the five hours of study time that'll be lost. For one to increase the number of hours worked and earn most pay, there'll be a negative impact on the study hours used before.

6 0
3 years ago
Most licensed architects are members of which association? A. ACSA B. AIA C. NAAB D. NCARB E. NVOB
Rasek [7]

Answer: It is B. AlA

Explanation:ALA is open to all architects and professions related to architecture. Our members hold individual memberships and specialize in all types of architecture.

8 0
3 years ago
Suppose quantity demanded is 2,000 when price is $10 and 3,000 when price is $5. If a monopolist who was initially charging a pr
Pavel [41]

Answer:

$25,000 by charging consumers with more elastic demand only $5 and keeping the price for consumers with less elastic demand at $10

Explanation:

Price discrimination refers to the differentiation in the price of the product for every consumer that means the company charged different prices from the different customers

Also, in this it charges from the consumers having more elastic demand at less price. Here 2,000 units are purchased at $10 and the 1,000 units are purchased at $5 so the total quantity demanded is 3,000

The 25,000 units come from

= 2,000 ($10) + 1,000 ($5)

= 20,000 + 5,000

= 25,000

7 0
3 years ago
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