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gtnhenbr [62]
3 years ago
14

From the following income statement accounts in the popup​window

Business
1 answer:
ahrayia [7]3 years ago
6 0

Answer:

Income Statement  For the Year Ended 2014         $

Revenue                  2,984,000

Cost of Goods Sold        (1,419,000)

Gross Profit          1,565,000

Selling, general, and administrative expenses           (454,000)

Earnings before Interest and Tax             1,111,000

Interest Expense         (288,000)

Profit before Tax         823,000

Tax Expense          (318,000)

Profit After Tax         505,000

Operating Cash Flows        $

Earnings before Interest and Tax            1,111,000

Depreciation         258,000

Interest Expense        (288,000)

Tax Expense         (318,000)

Cash Flow from Operating Activities    763,000

Explanation:

Revenue is an income statement item which is reported at the top. Cost of Goods Sold is deducted from revenue to find out Gross Profit. After the Gross Profit is derived then we deduct Selling and Administrative cost. We can now have Earnings before Interest and Tax (EBIT). Interest Expense is deducted from the EBIT. We derived Profit before Tax. After that we deduct Tax Expense and we can have Profit After Tax.

Operating cash flows starts with Earnings before Interest and Tax. We add back Depreciation and deduct interest expense and Tax expense. Cash flow from Operating Activities is derived.  

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tangare [24]
<span>Which skills would be the most beneficial for a computer help desk technician?

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<span>B. research skill</span>
4 0
3 years ago
Read 2 more answers
For each of the following scenarios, determine if it is an indicator of potential cash flow problems: (Hint: Review Chapter 5 Po
inn [45]

Answer:

a) yes

b) no

c) yes

d) no

Explanation:

a) if the A/R balance grow higher than the sales is an indicator that our collection cycle increase thus, customer extend their financiation providing less cash flow

b) this is the opposite as (a)  here we extend our financing agaist our suppliers. The payment cycle increases thus, decreasing the overall cash demand

c) If the assets were puirchased on cahs a huge amount was used alrady affecting the liquidity of the company.

If the company finance the purchase of the long term assets, in the future the company will have to dedicate a portion of their future cahs flow to pay up interest and principal which is what we should analize; wether or not the company will have difficulties in the future and the answer is yesin both scenarios.

d) no. It will not, as marketable securities are generally short-term and easily converted into cash in the short term. They do not generate cash flow problems in the long run as the company can sale them anytime to obtain cash.

6 0
3 years ago
sally borrowed $1000 from her friend monique two years ago. their arrangement required sally to repay $250 each year for the sub
ANEK [815]

Answer:

a

Explanation:

Here are the options to this question :

A. yes, 475 is more than the PV of the two remaining payments

B. More information is needed to decide

C. Monique is indifferent between the options, the PVs are equivalent

D. No, the PV of the remaining two payments is more than 475

We have to determine the present value of the remaining two payments and compare the options

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 = 0

Cash flow in year 2 = 0

Cash flow in year 3 = 250

Cash flow in year 4 = 250

I = 2%

PV = $466.54

$475  is greater than $466.54. Therefore, she should accept the single $475 payment

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

8 0
3 years ago
During 2011, Simon Kidman, the sole shareholder of a calendar year S corporation, received a distribution of $75,000. On Decembe
liraira [26]

Answer: c. Kidman recognizes a $1,000 LTCG

Explanation:

Long term gain can be calculated by the formula:

Capital gain = Distribution received - Basis in stock - Ordinary income earned

= 75,000 - 24,000 - 50,000

= $1,000

Long Term Capital gain is therefore $1,000.

3 0
3 years ago
Baruk Industries has no cash and a debt obligation of $36 million that is now due. The market value of​ Baruk's assets is $ 81$8
Gre4nikov [31]

Answer and Explanation:

The given values are:

Debt obligation

= $36 million

Market value

= $81 ​million

Outstanding shares

= $10 million

(a)...

Net Assets of the firm will be:

= 81 - 36

= $45 \ million

Now, the current share price will be:

= \frac{45}{10} = $4.5 \ per \ share

(b)...

Number of shares to be issued to repay debt obligation will be:

= \frac{36}{4.5} = $8 \ million \ shares

(c)...

The total number of outstanding shares will be:

= 10+8

= $18 \ million

Now,

The Current share price will be:

= \frac{Net \ assets \ of \ the \ firm}{Total \ no \ of \ outstanding \ shares}

= \frac{81}{18}

= $4.5 \ per \ share

8 0
3 years ago
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