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Kruka [31]
3 years ago
12

During the year, Belyk Paving Co. had sales of $2,560,000. Cost of goods sold, administrative and selling expenses, and deprecia

tion expense were $1,364,000, $685,000, and $477,000, respectively. In addition, the company had an interest expense of $302,000 and a tax rate of 24 percent. (Ignore any tax loss or carryforward provision and assume interest expense is fully deductible.)
a. What is the company's net income? (A negative answer should be indicated by a minus sign. Do not round Intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
b. What is its operating cash flow? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
a. Net income
b. Operating cash
Business
1 answer:
scoundrel [369]3 years ago
3 0

Answer:

Net income -$268,000

Operating Cash Flow $511,000

Explanation:

A. Calculation for the Net income

INCOME STATEMENT

Sales $2,560,000

Cost of goods sold $1,364,000

Other expenses $685,000

Depreciation $477,000

EBIT $34,000

Interest $302,000

Taxable income -$ 268,000

($34,000-$302,000)

Taxes (24%) 0

Net income -$268,000

CALCULATION FOR EBIT

Sales $2,560,000

LESS:Cost of goods sold ($1,364,000)

Other expenses ($685,000)

Depreciation ($477,000)

EBIT $34,000

Based on the information given we were told that we should ignore any tax loss which was why Taxes (24%) was $0

The taxes are zero since we are ignoring any carryback or carryforward provisions.

Therefore NET INCOME is -$268,000

B. Calculation for operating cash flow

Using this formula

Operating Cash Flow = EBIT + Depreciation - Taxes

Let plug in the formula

Operating Cash Flow= $34,000 + $477,000 - 0

Operating Cash Flow = $511,000

Therefore Operating Cash Flow is $511,000

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Answer: b. When population exceeds real GDP growth

Explanation:

Gross domestic growth(GDP) is the monetary value of all finished goods and services done within in a country over a period of time. When the population of a country exceeds what it produces there would be record in decline in productivity of the country. This is a serious problem as it could lead to other factors as scarcity(having high demand and low supply), it could lead to poverty as there won't be much jobs as production is not commensurate with population.

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Answer: See explanation

Explanation:

This is the remainder of the question:

How much does this economic activity contribute to GDP, NNP, National income, compensation of employees, Proprietors' Income, corporate profits, personal income, disposable personal income?

a. GDP – $1,000,000

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e. Proprietors’ income – $0

Because it is a Corporation, this will be $0.

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This will be:

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. The income elasticity of demand for medical care is 1.35. This implies that: a. if income decreases by 1%, the quantity demand
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Answer:

The correct answer is a).

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If the income elasticity of demand for medical care is 1.35,

<em>a. if income decreases by 1%, the quantity demanded for medical care decreases by 1.35%.</em> TRUE, this is what the definition implies.

<em>b. if the price of medical care increases by 1%, the quantity demanded for medical care decreases by 1.35%. </em>FALSE. In this elasticity, the sign is relevant. This income elasticity implies that changes in income and medical care expenses have the same sign.

<em>c. if the income of the average consumer increases by 1 dollar, the quantity demanded for medical care will increase by 1.35 units of care.</em> FALSE. The elasticity relates percentual variations, not absolute value variations.

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Firms will typically maintain a list of research and development projects ranked by expected rate of return. Expected rate of re
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<h3>What is expected return?</h3>

The expected return is the amount of profit or addition on money invested that an individual who is an investor is expected to get after a periods of time on the investment.

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An analyst is evaluating two​ companies, A and B. Company A has a debt ratio of​ 50% and Company B has a debt ratio of​ 25%. In
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Answer:

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