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Citrus2011 [14]
3 years ago
6

Stanton Inc. is considering the purchase of a new machine that will reduce manufacturing costs by $5,000 annually and increase e

arnings before depreciation and taxes by $6,000 annually. Stanton will use the Modified Accelerated Cost Recovery System (MACRS) method to depreciate the machine, and it has estimated the depreciation expense for the first year as $8,000. What is the supplemental operating cash flow for the first year?
Business
1 answer:
iris [78.8K]3 years ago
6 0

Answer:

$9,800

Explanation:

The computation of the supplemental operating cash flow for the first year is shown below:-

For computing the supplemental operating cash flow for the first year first we need to follow some steps to reach the answer which is here below:-

Total Inflows = Annual savings in cost + Increase in earning

= $5,000 + $6,000

= $11,000

Earnings before tax = Total Inflows - Depreciation

= $11,000 - $8,000

= $3,000

Tax = Earnings before tax × 40%

= $3,000 × 40%

= $1,200

Earning after tax = Earnings before tax - Tax

= $3,000 - $1,200

= $1,800

Cash flow in year 1 = Earning after tax + Depreciation

= $1,800 + $8,000

= $9,800

So, for computing the cash flow in year 1 we simply added earning after tax with depreciation.

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A company incurred the following costs for a new delivery​ truck: Purchase price $ 150 comma 000 Sales tax 7 comma 900 Delivery
MrMuchimi

Answer:

$168,200

Explanation:

Given that,

Purchase price = $ 150,000

Sales tax = 7,900

Delivery charge from​ sellers location = 1,200

Special racks for storage = ​3,000

Normal repairs to the truck before it was used for the first time = ​1,100

Signs painted on the truck ​= 2,000

Insurance on truck before it was used for the first time = ​3,000

All the above expenses are included in determining the cost of the delivery truck. Normal repairs to the truck and insurance on truck are also included in the cost of truck because it was incurred before the truck used for the first time.

Cost of the delivery​ truck:

= Purchase price + Sales tax + Delivery charge from​ sellers location + Special racks for storage + Normal repairs to the truck before it was used for the first time + Signs painted on the truck + Insurance on truck before it was used for the first time

= $150,000 + $7,900 + $1,200 + $3,000 + $1,100 + $2,000 + $3,000

= $168,200

5 0
3 years ago
Dublin Inc. had the following common stock record during the current calendar year: Outstanding-beginning of year 2,600,000 Addi
larisa86 [58]

Answer:

The correct answer is 3,175,300.

Explanation:

According to the scenario, the computation of the given data are as follows:

We can calculate the number of shares by using following formula:

Number of shares = [ Outstanding + ( Additional share × Months) + ( Additional share × Months)] × 1+Dividend

By putting the value, we get

= [2,600,000 + (280,000 × 6/12) + (280,000 × 3/12)] × 1.13

= [ 2,600,000 + 140,000 + 70,000 ] × 1.13

= 3,175,300

4 0
3 years ago
What is the definition of business
tester [92]

Answer:

See below

Explanation:

Business refers to the practice of producing or purchasing goods and services for sale to make a profit. It is the act of engaging in commercial activities of buying and selling products and services for profits.

Business entails individuals and companies' activities of supplying desired products and services to customers with profit motives. A businessperson identifies a need in the community. He or she sells to the community goods or services that satisfy that need a higher price to make a profit.

7 0
3 years ago
For each situation listed below, indicate the effect on the debit and credit column of the trial balance.a. Journal entry for sa
Ray Of Light [21]

Answer and Explanation:

The indication of the following transactions are as follows in the trail balance

Particulars          Debit                   Credit

a.                     Overstated            Overstated

b.                     Understated          Overstated

c,                     Overstated             No effect

d.                    Overstated            Understated

e.                    Overstated            Understated      

These are the effects for each of the given transaction

5 0
3 years ago
U.S. Exports are​ _____ produced in​ _____ and sold in​ _____.
WARRIOR [948]

Answer:

D. goods but not​ services; any other​ country; the United States

Let me know if I was wrong

Click the Thanks button if I was right.

<Jayla>

7 0
3 years ago
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