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
faust18 [17]
3 years ago
11

Amsted, Inc. is considering a project that will increase revenues by $2.5 million, cash operating expenses by $700,000, and depr

eciation and amortization by $300,000 during 2011. For this project, the firm will purchase $800,000 of equipment during the year while decreasing its inventory by $200,000 (with no corresponding decrease in current liabilities). The marginal tax rate for Amsted is 35 percent. What is this project’s incremental after-tax free cash flow for 2011
Business
1 answer:
grandymaker [24]3 years ago
8 0

Answer:

incremental after tax cash flow for 2011: $1,145,000

Explanation:

Additional revenue                                                 $2,500,000

Cash operating expenses                                       ($700,000)

Depreciation and amortization expenses               ($300,000)

<u>Reduced inventories                                               ($200,000)</u>

Pretax income                                                         $1,300,000

<u>Less taxes 35%                                                        ($455,000)</u>

Net income                                                                $845,000

<u>Add Depreciation and amort. expenses                  $300,000</u>

Free cash flow                                                           $1,145,000

You might be interested in
After months of thinking about the new laptop she heard about from a friend, anna finally decides it’s time to buy it. In what s
inna [77]

The stage of the customer journey of Anna is the Purchase phase.

Awareness: the customer becomes familiar with the brand via channels, consisting of advertising and word-of-mouth. Consideration: realizing that they have a need that must be met, the customer actively considers whether or not to buy the product or service on offer. Purchase: the customer makes the purchase.

Customer's journey. is defined as the active research process someone goes through leading up to a purchase. It is called a journey because each one of your prospective customers will be at different points in their journey towards a purchase.

Learn more about the Purchase phase here brainly.com/question/27975123

#SPJ4

7 0
1 year ago
A country recently experienced a drop in consumer purchases and a rise in business inventories of durable goods. Wages grew slow
brilliants [131]

Answer:

A recession

Explanation:

A recession is a period of slow or negative economic growth that lasts several months. In a recession, there is a general decline in productivity in the economy. In other words, the GDP growth rate drops too low or turns negatives.

Due to low productivity, unemployment rate rises as the industries and services sectors lay-off workers instead of creating job opportunities.  There is reduced consumer confidence leading to low retail sales and a decline in prices.

Negative growth implies reduced levels of investment in the economy. Businesses experience low profits, and hence, stock prices fall.  Economist considers recessions a part of a normal business cycle.

8 0
2 years ago
Ultimate Sportswear has $100,000 of 8 noncumulative, nonparticipating, preferred stock outstanding. Ultimate Sportswear also has
andrew-mc [135]

Answer:

Preferred dividend = $8,000

Common stock dividend = $22,000

Explanation:

The computation of dividend is shown below:-

Preferred dividend = Total shares × Total shares of Noncumulative, nonparticipating, preferred stock outstanding

= $100,000 × 0.08

= $8,000

Common stock dividend = Cash dividend - Preferred dividend

= $30,000 - 8,000

= $22,000

Therefore the Preferred dividend is $8,000 and Common stock dividend is $22,000

7 0
3 years ago
If a egg need 5 mins to cook how many mins 7 eggs need to cook
denis23 [38]

35 its just 5 x 7 you multiply the number of eggs by how many minutes.

6 0
3 years ago
Edgewater Enterprises manufactures two products. Information follows: Product A Product B Sales price $ 13.50 $ 16.75 Variable c
olasank [31]

Answer:

The break-even point is $25,900 units

Explanation:

In this question we use the formula of break-even point in unit sales which is shown below:

= (Fixed expenses) ÷ (Contribution margin per unit)

where,  

Contribution margin per unit for product A = (Selling price per unit - Variable cost per unit) ×product mix

= ($13.50 - $6.15) × 40%

= $2.94

Contribution margin per unit for product B = (Selling price per unit - Variable cost per unit) ×product mix

= ($16.75 - $6.85) × 60%

= $5.94

So, the total contribution margin would be equal to

= $2.94 + $5.94

= $8.88

And, the fixed cost is $230,000

Now put these values to the above formula

So, the value would be equal to

= $230,000 ÷ $8.88

= $25,900 units

8 0
3 years ago
Other questions:
  • It is rumored that the Illinois Operations Manager, Sam, has requested the quarterly budget to include an available position for
    15·1 answer
  • _______________________ are economists who generally emphasize the importance of aggregate supply in determining the size of the
    12·1 answer
  • The term? "market" in economics refers to
    13·1 answer
  • A company manufactured 50,000 units of a product at a cost of $450,000. It sold 45,000 units at $15 each. The gross profit is a.
    8·1 answer
  • Black Cat Corporation manufactures a product with the following full unit costs at a volume of 4,000 units: Direct materials $20
    11·1 answer
  • The primary goal of a firm's management is to do what?Select one:a. Maximize owner's share of earningsb. Maximize owner's wealth
    15·1 answer
  • An analyst determines the value of investment
    9·1 answer
  • Cash balance, September 1 (from a summer job) $7,560
    10·1 answer
  • According to the classification system for global organizational culture as developed by Hofstede, the degree to which employees
    5·1 answer
  • One of the assumptions underlying the production possibilities curve (or
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!