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Scrat [10]
3 years ago
9

Assume that a new project will annually generate revenues of $2 million. Cash expenses including both fixed and variable costs w

ill be $800,000, and depreciation will increase by $200,000 per year. In addition, let’s assume that the firm’s marginal tax rate is 34 percent. Calculate the operating cash flows.
Business
1 answer:
Mashcka [7]3 years ago
8 0

Answer:

Cash flow from operating activities 992,000

Explanation:

revenue                 2,000,000

expenses                  800,000

before tax income 1,200,000

tax rate 34%         <u>   (408,000)  </u>

Net Income              792,000

Non-monetary

depreciation           200,000

Cash flow from operating activities 992,000

To solve this we use the indirect method.

We will calculate the net income as usual and once we got there, we remove the non-monetary expeses or revenues.

Always, the depreciaton must be removed.

The depreciation is an accounting tool to distributethe cost of fixed assets during time, it do not represent an actual cash disbursement.

This means our cash flow is greater than net income by this amount.

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onghorn Fabricators Inc. plans to expand its metals-forming facility over the next 5 years. The company will add 20,000 square f
Ann [662]

Answer:

Future value of total improvement cost = $1,788,552.44

Explanation:

As per the data given in the question,

Regular deposit amount = $250,000

No. of period = 5 years

Interest rate = 18%

Future value = Regular deposit amount × [((1+interest rate per period)^no. of period - 1) ÷ interest rate per period]

Face value = $250,000×[((1+0.18)^5-1) ÷ 0.18]

= $250,000×7.154

= $1,788,552.44

Future value of total improvement cost = $1,788,552.44

7 0
3 years ago
Swifty Corporation purchased a machine for $66000 on July 1, 2020. The company intends to depreciate it over 8 years using the d
Lostsunrise [7]

Answer:

Depreciation expense= $7,612.5

Explanation:

Giving the following information:

Purchase price= $66,000

Salvage value= $5,100

Useful life= 8 years

<u>First, we need to determine the depreciation expense for the whole year. We will use the following formula:</u>

<u></u>

Annual depreciation= 2*[(book value)/estimated life (years)]

Annual depreciation= 2*[(66,000 - 5,100) / 8]

Annual depreciation= $15,225

<u>For 2020:</u>

Depreciation expense= (15,225/12)*6= $7,612.5

3 0
2 years ago
Venus Williams is one of the top women’s tennis players in the world. Because this status overrides all her other statuses, it i
Sonja [21]

Answer:

Master status

Explanation:

In the social development of an individual, some certain set of characteristics or social identity is peculiar to individuals in which that individual is known for. Such social identity is what we refer to as the status of an individual.  

Status of an individual can be achieved or ascribed. Achieved statuses such as occupation, athlete, teacher,  parent, spouse, criminal etc, all statuses gained throughout the course of individuals’ lives. Ascribed status on the or hand are statuses that an individual is born with, such as sex, race etc.

As an individual develops and interacts in a society, any particular status that makes a person well known for and easily identified with is referred to as the master status of the individual. The master status overrides other statuses of the individual. It is the status that confers a social identity that is exceptional on an individual. Master status can be ascribed or achieved.

The status of Venus Williams as one of the top women’s tennis players in the world is a Master status, which is an achieved status that overrides all other statuses that she is known for. Wherever her name  mentioned, the first thing that comes to people’s mind is her master status of being a star in tennis.

3 0
3 years ago
eating small amounts of sweet desserts can satisfy one's urge or craving for healthier food. true or false?​
krok68 [10]

Answer:

I think eating healthier food would be better. Eating sweet desserts would be healthier than eating a lot, but you should still cut down and eat healthier foods. False

Explanation:

6 0
3 years ago
Which economic system has economic roles that are passed from generation to generation?
mylen [45]
The best answer would be: traditional economy (specifically, it's definitely neither market economy nor command economy - in those economies the family does not necessarily play a role in the chose of roles).

An example of such strict economic roles is ancient India - and the roles are called castes.
5 0
2 years ago
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