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
aev [14]
2 years ago
10

The Rogers Corporation has a gross profit of $704,000 and $333,000 in depreciation expense. The Evans Corporation also has $704,

000 in gross profit, with $49,300 in depreciation expense. Selling and administrative expense is $191,000 for each company.
a. Given that the tax rate is 40 percent, compute the cash flow for both companies.

Cash Flow Rogers=
Cash Flow Evans=

b. Calculate the difference in cash flow between the two firms.
Business
1 answer:
Reil [10]2 years ago
5 0

Answer:

a. Cash Flow Rogers =  $441,000

Cash Flow Evans = $327,520

b. $113,480

Explanation:

The computation of the cash flow for both companies are shown below:

a. For Cash Flow Rogers

= Gross profit - Selling and administrative expense - income tax expense + depreciation expense × tax rate

where,  

Income tax expense = (Gross profit - Selling and administrative expense) × income tax rate  

= ($704,000 - $191,000) × 40%  

= $205,200

And, the other items values would remain the same

Now put these values to the above formula  

So, the value would equal to

= $704,000 - $191,000 - $205,200 + $333,000 × 40%

= $307,800 + $133,200

= $441,000

For Cash Flow Evans

= Gross profit - Selling and administrative expense - income tax expense + depreciation expense × tax rate

where,  

Income tax expense = (Gross profit - Selling and administrative expense) × income tax rate  

= ($704,000 - $191,000) × 40%  

= $205,200

And, the other items values would remain the same

Now put these values to the above formula  

So, the value would equal to

= $704,000 - $191,000 - $205,200 + $49,300 × 40%

= $307,800 + $19,720

= $327,520

b. The computation of the difference in cash flow between the two firms are shown below:

= Cash Flow Rogers - Cash Flow Evans

= $441,000 -  $327,520

= $113,480

You might be interested in
Suppose that in a given month $40 million is deposited into the banking system while $50 million is withdrawn. Assume that the r
vladimir1956 [14]

Answer: Money Supply Decrease of $50 million.

Explanation:

$40 million was deposited while $50 million was withdrawn.

The net change in the banking system would therefore be,

= 40 - 50

= -$10 million

($10 million ) means that more money left than came in.

The money supply can be calculated as the net change multiplied by the money multiplier.

The Money Multiplier is denoted as 1/reserve requirement.

Change in Money Supply is,

= -10 million * 1/20%

= -$50 million

Going by the negative number it means that Money Supply reduces by $50 million.

8 0
3 years ago
t is often costly to obtain the information necessary to make good decisions. yet your own interests can be best served by ratio
goldenfox [79]

Answer:

The answer is below

Explanation:

1. Yes, making uninformed decisions is irrational. This is because it will cost the individuals making uninformed decisions to lose money in the process. Such individuals may also lose another important aspect concerning their decision, such as technological advantage, political assistance, social benefits, economic privilege, etc.

2. To determine how much information is the right amount is to ensure you continue to acquire information as long as the benefit of the additional information exceeds the additional costs. Otherwise, it is no longer the right amount anymore.

3 0
2 years ago
The listing agent received a full price offer that she faxed to the out-of-town seller. The seller signed the faxed copy, and fa
ExtremeBDS [4]

Answer: Yes contract has been formed.

Explanation: According to the Uniform Electronic Transaction Act (UETA), electronic transactions are just as binding as transactions made on hardcopy documents. Moreover signatures made electronically reinforces the validity of these elctronic documents.

In the scenario the actual signature was signed on a hard copy by the seller, but it was then faxed back to the listing agent. This faxed copy, showing the faxed signature, is an electronic document that confirms the existence of the contract in accordance with the UETA. This faxed signature is as enforceable as an ink signature.

6 0
3 years ago
Go Zone plans to introduce four tablet models over the next year. These models range from basic readers at $99 per unit, to more
Savatey [412]

Answer:

Product line Pricing  

Explanation:

The reason is that when the manufacturer produces a number of quality range products and price them accordingly. This means that the customer who has different level of purchasing power can fulfill his needs and wants accordingly. So producing a single product limits the satisfying of needs and wants of small customer segment whereas producing multiple product range helps in targeting a range of customer segments. The different prices of tablets charged here for different products actually reflects the prices of the products.

7 0
3 years ago
Sutter Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. T
Elena L [17]

Answer:

The universal sign for choking is __________.

A.

two balled fists pressing the abdomen

B.

pointing at an open mouth

C.

two hands grasping the neck

D.

pretending to cough

Explanation:

3 0
3 years ago
Other questions:
  • As a rule, possible harm to subjects may be justified when the potential benefits of the study outweigh the possible harm.
    5·1 answer
  • In Expanded Academic ASAP and other periodical databases, it's best to put your exact phrase A. between dashes. B. in quotation
    8·2 answers
  • What is the role of the Federal Deposit Insurance Corporation?
    8·1 answer
  • Suppose market demand for a product is given by the equation P = 20 – Q. For this market demand curve, marginal revenue is MR =
    12·1 answer
  • Williams Optical Inc. is considering a new lean product cell. The present manufacturing approach produces a product in four sepa
    5·1 answer
  • FAW Group is an automobile manufacturer known for producing efficient, durable, and low-priced cars. Recently, the company launc
    5·1 answer
  • Millionaires are usually:
    10·1 answer
  • With iOS, its particularly important for an app to minimize the persistent storage placed in the app's home directory. This is b
    5·1 answer
  • Which of the following describes the money you must pay to own an insurance policy?
    9·1 answer
  • Early access to medical care, from ems through reperfusion, improves overall outcomes by:________
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!