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Ghella [55]
3 years ago
6

Bennett Co. has a potential new project that is expected to generate annual revenues of $266,600, with varlable costs of $146,00

0, and fixed costs of $62,800. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $27,000. The annual depreciation is $26,200 and the tax rate is 40 percent. What is the annual operating cash flow? а.$45,160b. $84,000 c. $183.416 d.$41.280 e. $131,080
Business
2 answers:
ANTONII [103]3 years ago
6 0

Answer:

а.$45,160

Explanation:

Bennett Co Annual Operating Cash Flow

Operating Cash Flow =

Annual revenues $266,600

Less: Variable costs ($146,000)

Fixed costs ($62,800)

Balance $57,800

Tax rate[ (1-0.4) × $57,800] $34,680

Add depreciation (40%×$26,200) $10,480

Operating Cash Flow $45,160

Therefore the ANNUAL OPERATING CASH FLOW is $45,160

emmainna [20.7K]3 years ago
4 0

Answer:

a.$45,160

Explanation:

    The answer is attached.      

Download xlsx
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Equipment that was purchased for $900,000 has a current book value of $450,000. Assume a capital gains tax rate of 28%. Compute
natita [175]

Answer:

there is an increase in taxes of $52,192

Explanation:

The computation of the net payment or saving is shown below:

Given that

Book value = $450,000

Sale value = $636,400

since the sales value is more than the book value so here the capital profit is there

Therefore capital profit would be

= $636,400 - $450,000

= $186,400

Now tax would be

= $186,400 × 28%

= $52,192

So there is an increase in taxes of $52,192

7 0
3 years ago
The Fed targets a 2% inflation rate. Assume the growth rate of real GDP (Y) is 1.5% and the rate of change of the velocity of mo
lisabon 2012 [21]

Answer:

3.5%

Explanation:

The quantitative theory of money (QTM) states that MV=PT (eq.1). M is the money supply, V is the velocity of circulation, P is the price of a typical transaction and T is the total number of transactions. The velocity of circulation is the number of times that a dollar changes of holder y a period. We can also write eq.1 as MV=PY (eq.2) because the cuantitative equation assumes that the valu of transactions is equal to the GDP (Y). The QTM also has two main assumptions: V is constant in the short term and Y is given by factors and technology. If we write eq.2 in a rate of change form, then we have: ΔM+ΔV=ΔP+ΔY (eq.3).

First, ΔP represents changes in prices which is know as inflation rate (given by the problem). Second, ΔY is the growth rate of real GDP (also given by the problem). Third, ΔV is the rate of change of money velocity, but in this case, velocity does not change, which means the rate of change is 0. And, ΔM is what we have to find. According to this, we have a new equation:ΔM=ΔP+ΔY (eq.4).

Then, ΔM=2%+1.5%=3.5%. The Fed should change money supply in 3.5%

7 0
4 years ago
Star Repairs Co. does all the repair work for a medium-sized manufacturer of handheld computer games. The games are sent directl
AveGali [126]

Answer:

The correct answer is "$120,250".

Explanation:

The given values are:

Opening inventory

=  $38,500

Closing inventory

= $15,250

Purchases

= $97,000

Now,

The cost of materials used during the month of February will be:

= Opening Inventory + Purchases - Closing Inventory

On putting the estimated values in the above formula, we get

= 38,500+97,000-15,250

= 120,250 ($)

4 0
3 years ago
Janet works on a team of 15 people working in research and development for a toymaker. They have weekly meetings to discuss new
RideAnS [48]

Answer:

D. production blocking.

Explanation:

Janet is suffering from production blocking. This is an issue encountered in brainstorming sessions related to the fact that only one member must speak at a time which can prevent other members from sharing their ideas as they occur and make it difficult for them to concentrate in their own idea since they need to be paying close attention to whatever is being said.

7 0
4 years ago
In the ________ stage of development, a developing individual is about one-fifth of an inch and has developed a rudimentary beat
sammy [17]

Answer:

Embryonic stage  

Explanation:

Embryonic stage  

it is a stage of parental development in the 3rd month of pregnancy, where he or she at this stage is called embryo which is developed through cell division. At this stage of development, he or she has a heartbeat, other organs, etc. But at this stage at these developing organs are at the primary stage.

4 0
3 years ago
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