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
irakobra [83]
3 years ago
6

Butterfly tractors had $14 million in sales last year. cost of goods sold was $8.00 million, depreciation expense was $2 million

, interest payment on outstanding debt was $1 million, and the firm's tax rate was 35%.
a. what was the firm's net income?
Business
1 answer:
Kruka [31]3 years ago
8 0
The net income is $1.95 million, this is how we calculate this;
Sales last year is $14 million
Goods sold cost = $8 million
Depreciation expense = $2 million and debt is $1 million.
So the amount left = $14 million - ($8million + $2 million + $1 million ) = 14 - 11 = 3 million
tax rate is 35 %, so 35% of 3 million = 0.35 x 3 = $1.05 million
Net income = $3 million - $1.05 million = $1.95 million
You might be interested in
Your firm is planning to invest in a new electrostatic power generation system. Electrostat Inc is a firm that specializes in th
kozerog [31]

Answer:

The cost of capital for electrostatic power generators is closest to 7.75%

Explanation:

In order to calculate the estimate of your cost of capital for electrostatic power generators we would have to make the following calculation:

Step-1, Calculation of the Overall Beta

Market Value of Equity = $40,00,00,000 [160,00,000 Shares x $25 per share]

Market Value of Debt = $22,00,00,000

Total Market Value = $62,00,00,000

Therefore, Beta = [Equity Beta x Weight of Equity] + [Debt Beta x Weight of Debt]

= [1.18 x ($40,00,00,000 / $62,00,00,000)] + [0.08 x ($22,00,00,000 / $62,00,00,000)]

= 0.761290 + 0.028387

= 0.789677

Step-2, Cost of capital

As per CAPM Approach, Cost of capital = Risk-free Rate x (Beta x Market Risk Premium)

= 3% + (0.789677 x 6%)

= 3% + 4.75%

= 7.75%

Therefore, the cost of capital for electrostatic power generators is closest to  7.75%

6 0
3 years ago
An important assumption that is made when constructing a supply schedule is only price and quantity matter in determining supply
sergey [27]

Answer:

only price and quantity matter in determining supply

all other determinants of supply are held constant

Explanation:

At the time of constructing the supply schedule, only price and quantity should be considered and other factors should remain the same because the factors that impacts the supply other than the price so it shifted the supply curve but when only the price changed so there should be the movement also law of supply represent the direct relationship between tfhe price and the supply

8 0
2 years ago
The Lead City factory makes car batteries. The factory opened in 2014, and by the end of the year, they had made 30,000 batterie
dmitriy555 [2]

Answer:

2017:

Total variable cost= $600,000

Total fixed cost=  $1,900,000

2018:

Total variable cost= $800,000

Total fixed cost= $1,900,000

Explanation:

Giving the following information:

The factory opened in 2014, and by the end of the year, they had made 30,000 batteries for a total cost of $2,500,000. In 2015, they made 40,000 batteries for an additional cost of $200,000.

I will assume that the fixed costs remain constant in both years.

We can calculate the variable cost per unit using the incremental cost.

Variable cost per unit= incremental cost/incremental units

Variable cost per unit= 200,000/10,000= $20

Now, we can calculate the fixed costs:

2017:

Total variable cost= 30,000*20= $600,000

Total fixed cost= 2,500,000 - 600,000= $1,900,000

2018:

Total variable cost= 40,000*20= $800,000

Total fixed cost= $1,900,000

6 0
3 years ago
When the IS organization and its resources are focused on efforts that support the key objectives defined in the managers' strat
o-na [289]

Answer:

Alignment

Explanation:

According to my research on Information Technology, I can say that based on the information provided within the question this means that the organization is in Alignment. This is basically when all sectors or categories within an organization are aligned and working in unison as a whole in order to solve a certain problem.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

6 0
3 years ago
Chelsea purchased her monthly grocery requirements instead of soccer game tickets for the championship match she wanted to see.
Wittaler [7]
Here is the answer. Based on the given scenario above about Chelsea, who brought <span>her monthly grocery requirements instead of soccer game tickets for the championship match she wanted to see. Chelsea has chosen to satisfy her NEEDS over her wants. Hope this helps.</span>
8 0
3 years ago
Read 2 more answers
Other questions:
  • The primary purpose of the requirements analysis phase is to ________. eliminate obviously nonsensible projects before forming a
    7·1 answer
  • The common stock of Auto Deliveries sells for $26.46 a share. The stock is expected to pay $2.00 per share next month when the a
    12·1 answer
  • Target Market Selection Process:
    11·1 answer
  • The natural rate of unemployment is the: Question 10 options: a) full-employment unemployment rate. b) unemployment rate experie
    10·1 answer
  • Under central planning, some group has to decide how to get the necessary inputs produced in the right amounts and delivered to
    14·1 answer
  • The supply of pineapples in Hawaii increases, causing pineapple prices to fall. Lower prices mean that Hawaiian households will
    11·2 answers
  • Cruella Inc. owns 85% of Horace Co. During 20X9, Cruella sells goods to Horace with a 25% gross profit. Horace sold all of these
    8·2 answers
  • What are the types of budget​
    8·1 answer
  • In a _________________________ economy, the individuals and the government share in the economic decision-making process. These
    10·1 answer
  • Taylor is analyzing the effects of wage rates on the supply of laptop computers. By using the ceteris paribus assumption, Taylor
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!