1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
If an economist argues that everyone gains from trade, what reasoning is most likely underlying her argument?
mylen [45]

Answer:

If an economist argues that everyone gains from trade, the following reasoning is most likely underlying her argument:

  • Production according to the principle of comparative advantage lowers overall costs and therefore allows both countries to have a higher standard of living.

Explanation:

  • The comparative advantage refer to the situation in which an individual, company or a country offers its services and products at a lower rate as compared to its competitor. This leads to trade-off as you have to comprise for the gain of something.
  • This comparative advantage also increase the dependencies of nations or companies on each other.
  • For example, England and Portugal has benefited from this comparative advantage concept as England get the wine at lower cost from Portugal and Portugal also get earning by selling this wine to England.
4 0
3 years ago
At December 31, 2019, Bramble Corporation had the following stock outstanding. 10% cumulative preferred stock, $100 par, 108,506
ale4655 [162]

Answer:

The earnings per share for Bramble in 2020 is $2.99

Explanation:

This was arrived at by preparing income statement for 2020,where in the results from continued operations and discontinued were shown.

The income from continued operations attracted tax at 35% while the losses from the discontinued operations got a tax benefit at the same 35% tax rate.

Note that the earnings used in calculating earnings per share is net of preferred dividends as only earnings  attributable to ordinary shareholders are considered.

Find attached spreadsheet for the full blown income statement and the calculation of earnings per share.

Download xlsx
5 0
3 years ago
Omega Company makes and sells jungle gyms and tree houses for children. For jungle gyms, the price is $150 and the variable expe
Whitepunk [10]

Answer:

b 5:3

Explanation:

Jungle gym sales unit : tree sales unit

10,000 : 6,000

10,000 / 6000

= 5/3

=5:3

6 0
3 years ago
Read 2 more answers
Dallas Products is a division of a major corporation. The following data are for the most recent year of operations: Sales $ 37,
Mandarinka [93]

Answer:

See below

Explanation:

Given the above information, margin is computed as;

Margin = Net operating income / Sales

Sales = $37,880,000

Net operating income = $3,508,960

Then,

Margin = $3,508,960 / $37,880,000

Margin = 9.26%

Therefore, the division's margin used to compute ROI is closest to 9.26% approximately

7 0
3 years ago
Americans' core value of upward mobility (i.e., success will come to anyone who works hard) has greatly influenced the way luxur
Vlad1618 [11]

Answer: Option (C)

Explanation:

Sociological factors are referred to as or known as elements or factors of the society that tends to radiate negative and positive influence which cause a change in function, structure, elements, and orientation. Sociology tends to mostly study society in regards with its elements, structure, and their development which mostly includes numerous factors such as people and the population, ethnicity, age, gender, religion, view , culture, and etc.

8 0
4 years ago
Other questions:
  • Frederic Taylor applied the scientific method to management. In many cases, this meant measuring a process to determine its opti
    5·1 answer
  • Bradley, an executive chef in a large hotel, recently attended a training conference sponsored by several top professionals in h
    6·1 answer
  • A physical count of supplies on hand at the end of May for Masters, Inc. Indicated $1,245 of supplies on hand. The general ledge
    7·2 answers
  • Four years ago, on January 1, California Creamery bought a new delivery truck for $30,000. The company planned to use the truck
    5·1 answer
  • If the price of Yoo-hoo is $2 in New York and $1 in St. Petersburg, Russia (after converting the rubles to dollars), you might e
    6·1 answer
  • A jeweler can potentially use two inputs in her handcrafted jewelry: copper or bronze. She finds that when she minimizes her cos
    8·1 answer
  • A firm has taxes of $2,000, interest expense of $1,000, EBIT of $7,500, common stock dividends of $1,500, and preferred dividend
    8·1 answer
  • Consider the following premerger information about a bidding firm (Firm B) and a target firm (Firm T). Assume that both firms ha
    14·1 answer
  • A 40-year old taxpayer has owned a Roth IRA for more than 5 years. A $10,000 distribution will be considered nonqualified if the
    5·1 answer
  • Question #5
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!