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nikklg [1K]
3 years ago
15

During 2010, raines umbrella corp. had sales of $850,000. cost of goods sold, administrative and selling expenses, and depreciat

ion expenses were $610,000, $110,000, and $140,000, respectively. in addition, the company had an interest expense of $85,000 and a tax rate of 35 percent. (ignore any tax loss carryback or carryforward provisions.)
a. what is raines's net income (loss) for 2010? (input the amount as a positive value.) $
b. what is its operating cash flow?
Business
1 answer:
I am Lyosha [343]3 years ago
4 0
To calculate: 
1) Net income (loss) for 2010.
 2) Operating cash flow 
 Solution: 1)
 Sales = $850000
 Less: Cost of goods sold = $610000
  Gross profit = $240000
 Less: Administrative and selling expenses = $110000 
 Earning before Interest, Tax and Depreciation = $130000
 Less: Depreciation = $140000
  Earning before Interest and Tax (EBIT) = ($10000)
 Less: Interest expense = $85000
  Earning before tax (EBT) = ($95000)
 Less: Tax = $0 (as company is having negative EBT or loss hence no tax)

 
 Net loss = $95000  
 2) Operating cash flow 
 EBIT + Depreciation - Tax 
 Wherein, EBIT = Earning before Interest and Tax
  ($10000) + 140000 - 0 = $130000
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The output effect in a monopoly takes place when the price of input will raise the production costs of a business and reduce its output level and vice-versa. The price effect refers to the impact an activity has on the value of something. The price effect consists of the effect of substitution and the effect of profits. While the output effect has the purpose of increasing revenue, the price effect works towards decreasing it.

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Gina Robinson, Inc. (GRI) GRI management has decided to reinvent the culture of the organization. Previously, the company tried
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C) Telecommuting

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Telecommuting simply means working from your home. The internet changed our lives completely, and it is also how we work. Everyday more people are starting to work from distant locations to their "main office". This means that they can be working at their house using a computer which is connected to the company's intranet.

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3 years ago
You are 20 years old and have completed your BBA and want to pursue further education but you don’t want to take money from your
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Answer:

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4. If you are given an option to invest at the 10% saving rate with monthly compounding or 10.5% semiannual compounding, which would you chose?

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the effective interest rate of investing at 10.5% compounded semiannually = (1 + 10.5%/2)² - 1 = 10.77%

8 0
3 years ago
A ________ state is one with unstable leadership, whose policies are driven by ideology rather than by economic or human costs a
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A rogue state is one that has unstable leadership and the policies are driven by ideologies instead of economic costs or benefits.

<h3>What is a state?</h3>

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A rogue state is a kind of state which is responsible for shattering and disrupting global laws and is also considered a danger to other countries or nations in the whole world. North Korea, Libya, Iran, Iraq, and Cuba are labeled as rogue states. These states are not driven by an economy and are actually driven by the ideologies developed by their presidents.

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7 0
2 years ago
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Answer:

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In this question. We are asked to calculate the number of years it will take a certain country Y to catch up with the GDP of a certain country X, given the annual growth rate in both countries.

We calculate the number of years as follows;

Firstly, we assign a variable to the value of the real GDP of country Y

let real

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thus , it will take 30 years to country Y to catch up to the level of country x.

7 0
3 years ago
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