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
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.

You might be interested in
Marvin Gaye's song "Gotta Give It Up" was protected by ___________ .
monitta

Answer:

d. not selected option d copyright

6 0
4 years ago
Read 2 more answers
The ____ is the amount earned on an investment for a given period of time.
hichkok12 [17]

Answer:

Investment income.

Explanation:

Investment income is income that comes from interest payments, dividends, capital gains collected upon the sale of a security or other assets, and any other profit made through an investment vehicle. Generally, individuals earn most of their total net income each year through regular employment income.

hope this helped broski =))

3 0
3 years ago
Qs 20-13 manufacturing: direct materials budget lo p1 miami solar manufactures solar panels for industrial use. the company budg
Helen [10]

Calculation of Direct Material Budget for the month of July:

Budgeted production (Units) for July 5,000

Material required per unit (pounds) 3

Material requirement for July (pounds) = (5000 units * 3 pounds) 15,000

Add: Ending material inventory (5300 units * 3 pounds* 30%) 4,770

Less: Beginning material inventory 4,500

Direct Material Purchase (Pounds) (15000+4770-4500) = 15,270

Cost per pound of Metrial ($) $6.00

Direct Material Purchase ($) (15270 pounds * $6) = $91,620

7 0
3 years ago
Consider the following​ alternatives: i. $ 140 received in one year ii. $ 240 received in five years iii. $ 350 received in 10 y
Svetradugi [14.3K]

Answer:

Ranking 10% interest rate:

1) 5 years

2) 10 years

3) 1 year

Raking 2% interest rate:

1) 10 years

2) 5 years

3) 1 year

Raking 18% interest rate:

1) 1 year

2) 5 years

3) 10 years

Explanation:

You have to apply to bring the amount of money to present value, according with the information, the formula is the next:

Present Value = Future Value/((1+ interest rate)^(n))

Where n is the number of years that you have to wait to receive the money.

You have to calculate every situation with the respective amount of time and interest rate, the result must be money. and when you get the 9 results, you have to compare every situation and chose the higher amount of money according to the interest rate, for example:

Present value = 140/ ((1+10%)^(1))=  127    

                       =  140/ ((1+10%)^(5))=   149    

                        =  140/ ((1+10%)^(5))=   135

So the answer for the first scenario with an interest rate of 10% is:  

Ranking 10% interest rate:

1) 5 years

2) 10 years

3) 1 year

5 0
4 years ago
Financial statements are optional accounting reports issued periodically by a firm which present information on the past perform
goldfiish [28.3K]

Answer:

False

Explanation:

Financial statements are written records that convey the business activities and the financial performance of a company. Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes.

These documents play a pivotal role in a financial institution, thus, not optional.

Cheers

7 0
3 years ago
Read 2 more answers
Other questions:
  • 11. Brooke Company desires net income of $720,000 when it has $2,000,000 of fixed costs and variable costs of 60% of sales. Cont
    15·1 answer
  • True or false, statistics are procedures used to organize, summarize, and communicate information
    7·1 answer
  • Trek Cycles makes two products: X-1 and X-2. It takes 80,900 direct labor hours to manufacture the X-1 and 93,500 direct labor h
    8·1 answer
  • Glossamer Inc., a company owned by George and Alex, faces huge debts and is eventually shut down due to bankruptcy. The company'
    9·1 answer
  • The state of competition is an industry, according to porter, depends on ______ basic forces.
    5·1 answer
  • A milestone is a typical measuring point used when establishing cost control. Which of the following DOES NOT accurately describ
    10·1 answer
  • Delivering bad news within an organization might involve sharing bad news with your boss or another employee in person or in wri
    13·1 answer
  • Unrestricted current funds of a private university designated by the governing board for a specific future purpose should be rep
    6·1 answer
  • Jennifer took a video recording of Jack and Alice fighting in an alley. Jack and Alice disclose multiple private facts about eac
    9·1 answer
  • The ________ perspective tends to view inflation as a cost that offers no offsetting gains in terms of lower unemployment.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!