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Svetlanka [38]
3 years ago
15

or 2018, Gourmet Kitchen Products reported $22 million of sales and $18 million of operating costs (including depreciation). The

company has $15 million of total invested capital. Its after-tax cost of capital is 9% and its federal-plus-state income tax rate was 35%. What was the firm's economic value added (EVA), that is, how much value did management add to stockholders' wealth during 2018
Business
1 answer:
Vinil7 [7]3 years ago
5 0

Answer:

Economic value added = $1,250,000

Explanation:

Economic value added (EVA) = Net operating profit after taxes - Invested capital * cost of capital

Economic value added= [($22,000,000 - $18,000,000) * (1 - 0.35)] - [$15,000,000 * 9%]

Economic value added =  ($4,000,000 * 0.65) - $1,350,000

Economic value added  = $2,600,000 - $1,350,000

Economic value added = $1,250,000

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Mayree is the owner of Spines Books, a small eclectic-style bookstore in a bustling college town. Mayree prides herself in selec
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Answer:

Inventory turnover

Explanation:

From the question we are informed Mayree who is the owner of Spines Books, a small eclectic-style bookstore in a bustling college town. Mayree prides herself in selecting hard-to-find books and magazines that her clientele enjoy. Recently, Mayree is experiencing a cash flow shortage, and she is concerned that she may be purchasing too many copies of each title. Having recently completed a business class, I can suggest to Mayree that she calculate the Inventory turnover ratio for her store, and then compare it to other stores in her industry. Inventory turnover can be regarded as rate at which particular company make sales of it's stock of goods and make replacement of its stock of goods during a particular period.

The inventory turnover ratio can be regarded as formula which is cost of goods that is been sold divided by average inventory within the same period.

Mathematically,

inventory turnover=[Net sales/ Average inventory at particular selling price]

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2 years ago
How to wear black formal shoes?
Sladkaya [172]

Answer:

Go in for a traditional shirt-jeans outfit and pair it with black formal shoes. A plaid shirt, pair of blue jeans and black dress shoes is how you'll want to rock it! Get that macho look right by wearing a leather jacket over a formal shirt and jeans. Your shoes will complement the jacket perfectly.

Explanation:

3 0
3 years ago
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What line item flows from the statement of retained earnings to the balance​ sheet?
-Dominant- [34]

Answer:

Retained Earnings

Explanation:

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3 years ago
Banks make a profit by
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Accounts receivable from sales transactions were $45,427 at the beginning of the year and $61,370 at the end of the year. Net in
ZanzabumX [31]

Answer:

The cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method would be $108,099

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Cash Flow from Operating Activities adjusts the Net Income for the Year with (1) Non-Cash Items, (2) Items Appearing Elsewhere (3) Changes in Working Capital.

From the given data Net Cash flow from Operating Activities is Determined as follows:

<u>Cash flow from Operating Activities</u>

Net income                                                              $124,042

<em>Adjustment for Changes in Working Capital.</em>

Increase In Trade Receivables (61,370-45,427)    ($15,943)

Net Cash flow from Operating Activities              $108,099

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3 years ago
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