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Doss [256]
3 years ago
11

Free Cash Flow Catering Corp. reported free cash flows for 2008 of $8.08 million and investment in operating capital of $2.08 mi

llion. Catering listed $1.08 million in depreciation expense and $2.08 million in taxes on its 2008 income statement. What was Catering's 2008 EBIT
Business
1 answer:
Ksivusya [100]3 years ago
5 0

Answer: $11.16 million.

Explanation:

Free Cash Flow Catering Corp Earnings Before Interest and Tax (EBIT) can be calculated by the following formula,

EBIT = Operating Cashflow + Taxes - Depreciation.

Operating Cashflow = Free Cashflow + Investment in Operating Capital

= 8.08 million + 2.08 million

= $10.16 million

EBIT = 10.16 million + 2.08 million - 1.08 million

EBIT = $11.16 million.

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Top Sound International designs and sells high-end stereo equipment for auto and home use. Engineers notified management in Dece
Strike441 [17]

Answer:Yes it should be reported.

$2.8 million should be reported in the the balance sheet as a liability.

Explanation: Contingent liabilities are liabilities that depend on the outcome of an event that may likely not occur.

Before they can be reported in financial statement, it must be able to estimate the value of such contingent liability and the liability must have a higher than 50% possiblity of being achieved.

If the value can be estimated, then the liability has a higher chance of being realised.

Qualifying contingent liabilities such as the $2.8 million estimated by Top Sound International should be recorded in the income statement as an expense and a liability on the balance sheet.

Therefore the $2.8 million liability should be reported in its 2018 balance sheet

6 0
3 years ago
Green Company purchases a truck for $30,000 on the first day of the year. Green Company uses straight-line depreciation and esti
SpyIntel [72]

Answer:

$5,000

Explanation:

The depreciation by Green Company in respect of truck for the first year of operations shall be calculated using the following mentioned formula;

Depreciation for the year=  (Cost of asset-Residual value)/useful life

Cost of asset=$30,000

Residual value=$5,000

useful life=5

Depreciation for the year=($30,000-$5,000)/5=$5,000

6 0
3 years ago
Heather is sixteen but looks much older. She goes into a jewelry store and buys a diamond bracelet with the money she has been s
patriot [66]

Answer:

can return the bracelet and get her money back

Explanation:

Minors have a restriction on the products that they can. To purchase these products they must have consent of their parent or guardian.

An identity card is required to determine the age of the buyer to avoid wrong sales to minors.

Items prohibited from sale to minors include: alcohol, tobacco, petrol, offensive weapons, intoxicating substances, and expensive jewelry.

So in this scenario since due diligence was not carried out by the store to check Heather's age on purchase, she can return the diamond bracelet and get back her money.

This was an illegal sale.

3 0
3 years ago
, a doctor from the local hospital, is a friend of Fran, the owner of a candy store. Every day, Ed spends about five minutes in
just olya [345]

<u>Answer:</u>

<u>- Yes,</u>

<u>- Bilateral, Implied contract which is enforceable.</u>

<u>Explanation</u>:

Note, both parties consented to a contract even though it was an informal setting. Remember, certain gestures were used by Ed to show contract acceptance, There's also valid consideration since the value of the exchange is known; which is a candy bar for $1.

Fran thus understands that Ed will pay for the candy later since he saw the sign, this also makes it a bilateral contract (between two parties only). The contract is also enforceable since it is legal to sell candies.

6 0
3 years ago
The first step in setting goal is
dezoksy [38]
Knowing your plan of attack
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