Answer:
a. -$210,000
b. $455,000
Explanation:
a. Company's net income
Sales. 2,275,000
Less:
Cost of goods sold
1,285,000
Administrative and selling expenses
535,000
Depreciation expense
420,000
EBIT
35,000
Less interest
245,000
Taxable income
-$210,000
Taxes 21%
Nil
Net income
-$210,000
b. The operating cash flow for the year
OCF = EBIT + depreciation - taxes
OCF = 35,000 + 420,000 - 0
OCF = $455,000
c. Net income was negative due to the deductibility of interest expense and depreciation.
The actual operating cash flow was positive due to the fact that depreciation is a non cash expense, and also interest is a financing and not an operating expense.
Answer:
Market price: 28.90
Explanation:
We will calculate the stock price using the gordon dividend grow model:
D1 = 1.25
grow = g = 6% = 6/100 = 0.06
return= for the return, based on the information give, we will calculate it using the CAPM model:
risk free = 0.04
premium market=(market rate - risk free)= 0.055
beta(non diversifiable risk)= 1.15
Ke =cost of capital = return in the dividend grow formula = 0.10325
Now, we calculate the stock price:
Stock: 28.9017341
Market price: 28.90
Answer:
ROI = Net operating income x 100
Average operating assets
ROI = $1,924,320 x 100
$6,000,000
ROI = 32.1%
The correct answer is C
Explanation:
ROI is the ratio of net operating income to average operating assets multiplied by 100.
Answer:
Explanation:
Strategic plans: They are those who seek to fulfill the company's wishes in the long term. They are usually described in a general way and are executed through tactical plans.
Tactical plans: They are those who take the strategic plans and turn them into specific activities for their execution and development.
Operational plans: Operational plans are all those that seek to create the mechanisms to plan and fulfill tactical plans.
Mission Statement: is the set of general objectives and principles of work to grow the company.
According to this definitions the answers are:
1) (D)Mission statement.
2) (A)Strategic.
3) (D)Tactical.
4) (A)Operational.
Goals questions:
1) (D) The statement does not specifies the time limit to accomplish the goal.
2) (A) Information regarding the type of air conditioners and refrigerators to be sold and the place where the goal is set is missing.
a) Four inequalities
- Variables:
number of adult tickets = a
number of student tickets = s
- An adult ticket costs $15 and a student ticket costs $11<span>
=> sale = 15a +</span><span> 11s
- The auditorium will seat 300 ticket-holders =>
(1) a + s ≤ 300
- The drama club wants to collect at least $3630 from ticket sale =>
(2) 15a + 11 s ≥ 3630
(3) a ≥ 0
(4) s ≥ 0 </span>
Graph
- Draw the s-axis, and highlight the positive part (s ≥ 0)
- Draw the a- axis, and highlight the positive part (a ≥ 0)
- Draw the line <span> a + s = 300 ; use the points (0,300) and (300, 0) which are the extremes of the line
- Shadow the region below the line (a + s ≤ 300)</span>
- Draw the line 15 a + 11 s = 3630; use the points (0, 242) and (330,0) which are the extrems of the line
- Shadow the region above the line (15a + 11s ≥ 3630)
The solution is the region that you shadowed twice: a triangle, located between the two inclined lines, at the left of the shadowed region.
b) List three combination of tickets that satisfy the inequalities
Choose some points that are in the solution region. For example:
1) s = 10, a = 250
2) s = 40, a = 240
3) s = 0, a = 300
