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vlabodo [156]
3 years ago
7

Taylor United is considering overhauling its equipment to meet increased demand for its product. The cost of equipment overhaul

is $4.02 million, plus $214,086.00 in installation costs. The firm will straight-line depreciate the equipment to zero using a 5-year recovery period. Additional sales from the overhaul should amount to $239,013.00 per year, and additional operating expenses and other costs (excluding depreciation) will amount to 39.00% of the additional sales. The firm has an ordinary tax rate of 37.00%. What is the operating cash flow for year 1 of this project?
Business
1 answer:
olga nikolaevna [1]3 years ago
5 0

Answer:

$405,175.06

Explanation:

The computation of the operating cash flow for year 1 is shown below:

Sales           $239,013

Less operating expenses & other cost ($239,013 × 39%) -$93,215.07

Less: Depreciation expenses

($4,020,000 + $214,086) ÷ 5 years                                -$846,817.20

Earning before interest and taxes                                    -$701,019.27

Less: Taxes at 37%                                                              $259,377.13

Net income                                                                          -$441,642.14

Add: depreciation expenses                                              $846,817.20

Operating cash flow                                                           $405,175.06

We simply deduct the operating sales and depreciation expenses from sales so that the EBIT could arrive after that taxes are deducted so that the net income could come and then finally added depreciation expenses so that operating cash flow could come

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Barrington Bears has developed the following sales forecasts for the next few months. January 500, February 600, March 720, Apri
Oduvanchick [21]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

Barrington Bears has developed the following sales forecasts for January 500 units.

BB has 80 bears on hand on Dec. 31. The normal ending inventory policy is to hold 20% of next month’s sales.

Direct labor is paid $18 per hour. Each bear takes 40 minutes to hand-finish. Variable overheads total $21 per direct labor hour. Fixed overheads amount to $25,000 per month.

First, we need to calculate the production for January.

Sales= 500 units

Ending inventory= (600*0.2)= 120 units

Beginning inventory= 80 (-)

Total= 540 units

Conversion costs= direct labor + manufacturing overhead

Direct labor= [(40/60)*540]*$18= $6,480

Variable overhead= 21*360 hours= $7,560

Fixed overhead= $25,000

Total conversion costs= $39,040

5 0
3 years ago
Theresa, an HR manager, works for a firm that is planning to expand overseas. Theresa is in the process of workforce planning an
podryga [215]

Answer:

Identify labour supply-demand gaps

Explanation:

Theresa as an HR manager must identify the labour supply-demand gaps. She has identified the firm's labour demand, and now the next step should be to identify the supply of labour and then to understand the gap. The labour supply-demand gap will help the HR manager to identify the possible changes which she must do to fulfil the firm's labour demand.

5 0
4 years ago
A business letter is not written:
GalinKa [24]

Answer:

OC. between two private individuals.

Explanation:

A business letter is a formal document written to convey an official or commercial message. It is written in a standard format. A Business letter is usually short, clear, and concise.

Two private individuals will probably communicate using personal letters.  Unlike a business letter, a personal letter uses a friendly and relaxed tone. They are no laid down formats to consider.  Personal letters may convey messages concerning the writer or recipient's social, religious, or economic matters.

8 0
3 years ago
You need $25,000 today and have decided to take out a loan at 7 percent for five years. Which one of the following loans would b
irina1246 [14]

Answer:

Amortize loan woul´d be the best loan

Explanation:

Even though there are no options in the question, the amortize loan coul´d be the best loan, with equal principal payments.

This one is a scheduled periodic payments that are applied to both principal and interests.  This one first pays off the relevant interests expense for the period, and then the payment reduces the principal

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3 years ago
What does a real estate license holder serving as a representative in an intermediary transaction offer to a client that was not
ra1l [238]

Real estate license holder serving as a representative in an intermediary transaction offer <u><em>advice and opinions</em></u> to a client that was not offered under dual brokerage.

The appointment of Real Estate license holders to assist buyers and sellers in an intermediary transaction enables those real estate license holders to provide advise and opinions during the course of talks, in contrast to the practice of dual brokerage. Under the dual brokerage system, license holders were expected to act in a fair and impartial manner. Commission fees are not tied to representation, and it is against the law for license holders to expose sensitive information belonging to the other parties involved in a transaction.

To know more about real estate refer to:

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7 0
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