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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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An investment counselor calls with a hot stock tip. He believes that if the economy remains​ strong, the investment will result
mixer [17]

Answer:

6,000

Explanation:

The expected value from this investment can be calculated by possible values for random variables by multiplying them by their probability

DATA

Strong  = 30,000   , probability = 30%

Moderate = 10,000 , probability = 60%

Weak = -30,000 , probability = 10%

Calculation

Expected profit = Values x Probability

Expected profit = (30,000 x 30%) + (10,000 x 60%) + ( 30,000 x 10%)

Expected profit = 6,000 + 6,000 -6,000

Expected profit = 6,000

7 0
3 years ago
Variable costs for Coronado Industries are 30% of sales. Its selling price is $120 per unit. If Coronado sells one unit more tha
nika2105 [10]

Answer:

Income will increase by $84.

Explanation:

<u>The break-even point is the number of units required to cover the fixed costs. Net income is zero.</u>

First, we need to calculate the unitary variable cost:

Unitary variable cost= 120*0.3= $36

<u>Now, the unitary contribution margin:</u>

unitary contribution margin= 120 - 36

unitary contribution margin= $84

Income will increase by $84.

8 0
2 years ago
Outdoor Company is located in Kirkland, Washington, where the city and the state have minimum wage laws. Outdoor pays its starti
Mademuasel [1]

Answer: the highest of the minimum wages.

Explanation:

The company will have the pay the minimum wage that is the highest because they are under the authority of all three governments and paying the highest minimum wage would ensure that they automatically follow the minimum wages set by the other two authorities.

For instance; the federal minimum wage is $7.25 per hour, the state minimum wage is $10 per hour and the city minimum is $12 per hour. When the company pays $12 an hour, they would be adhering to the city minimum and automatically adhering to the Federal and State minimums as well.

7 0
2 years ago
Which of the following is a benefit to corporate executives when a process is outsourced?
love history [14]

Answer:

<h2>In this case,the correct answer would be option b) given in the answer choices or More time to explore new revenue generation activities.</h2>

Explanation:

  • From an economic or business perspective, outsourcing of operational activities or conducts refer to assigning the business functions, activities, projects, assignments etc. to any third party or external agency with a view to enhance work productivity and minimize overall average operational costs or expenses.
  • The third party or the external entities involved in the outsourcing activities are typically not part of the parent or main company or are not commercially affiliated with the parent or main company.
  • One of the advantages of outsourcing to the company executives is to be able to assign some of the major and time consuming business activities to outsourced companies or entities and focus more on other mediums or sources of revenue generation for business. It might include introduction of new product or service lines, restructuring of the internal organizational settings or venturing new markets to capture higher consumer or client base. Hence, higher work or labor division through outsourcing activities can provide more time and opportunity for executives to focus more on other revenue generating endeavors.
5 0
2 years ago
Precision Construction entered into the following transactions during a recent year.
shusha [124]

Answer:

Jan-02

Dr Bulldozer $ 250,000

Cr Cash $ 20,000

Cr Note Payable $ 230,000

Jan-03

Dr Bulldozer $ 20,000

Cr Accounts Payable $ 20,000

Jan-30

Dr Accounts Payable $ 20,000

Cr Cash $ 20,000

Feb-01

Dr Repair and Maintenance Expense $ 800

Cr Cash $ 800

Mar-01

Dr Computer Software $ 3,600

Cr Cash $ 3,600

Explanation:

Preparation of the journal entries for each of the above transactions.

Jan-02

Dr Bulldozer $ 250,000

Cr Cash $ 20,000

Cr Note Payable $ 230,000

(Purchased bulldozer)

Jan-03

Dr Bulldozer $ 20,000

Cr Accounts Payable $ 20,000

(Replaced tracks on bulldozer)

Jan-30

Dr Accounts Payable $ 20,000

Cr Cash $ 20,000

(Paid cash)

Feb-01

Dr Repair and Maintenance Expense $ 800

Cr Cash $ 800

(Repaired seat of bulldozer)

Mar-01

Dr Computer Software $ 3,600

Cr Cash $ 3,600

(Purchase computer software)

8 0
2 years ago
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