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Savatey [412]
3 years ago
11

Johnson Battery Systems recently reported $9,000 of sales, $6,000 of operating costs other than depreciation, and $1,500 of depr

eciation. The company had no amortization charges, it had $4,000 of bonds that carry a 7% interest rate, and its federal-plus-state income tax rate was 40%. In order to sustain its operations and thus generate sales and cash flows in the future, the firm was required to make $800 of capital expenditures on new fixed assets and to invest $500 in net operating working capital. What was its free cash flow?
Business
1 answer:
muminat3 years ago
8 0

Answer:

$1,100

Explanation:

EBIT = Sales - Costs - Depreciation

       = $9,000 - $6,000 - $1,500

       = $1,500

Net income = EBIT - Tax @ 40%

                    = $1,500 - $600

                    = $900

Operating cash flow = Net income + Depreciation

                                  = $900 + $1,500

                                  = $2,400

Free cash flows:

= Operating cash flow - Increase in working capital - Capital expenditure

= $2,400 - $500 - $800

= $1,100

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When pooling variances, the resulting value will be closer to the variance for the sample with the smaller number of scores.​?
Mila [183]

Answer:

False

Explanation:

The reason is that the net difference depends upon the efficiency of the company and doesn't always gives a smaller number of score. There numerous examples like Nestle which integrated its finance departments and other departments which generated greater value for the company in the same year above the budget set. So when the company starts control costs with its greater efficiency achievements the favourable variance starts growing and vice versa.

6 0
3 years ago
Read 2 more answers
Barb works in a local factory. She receives 92 cents for each of the first 100 units she produces and $1.01 for each unit over 1
sergij07 [2.7K]

Answer:

The correct answer to the following question is $112.20.

Explanation:

Given information -

Barb receives 92 cents for the first 100 units

And if she produces more than 100 units , then she would receive $1.01 for each of the additional unit she produces

Therefore the amount she earns up to 100 units - .92 x 100

= $92

The amount she earns on the additional units - $1.01 x 20

= $20.20

The total amount she earns = $92 + $20.20

= $112.20

4 0
3 years ago
Which of the following is an example of an illiquid asset?
denis23 [38]

Answer:

The correct answer would be B, Money in a checking account.

Explanation:

Liquid assets are one in the category of assets that are ready to be converted into cash. Cash held by a company is the considered the liquid asset of the company. Or any assets which can be converted into cash without losing so much of its value is called a liquid asset. For example if a company holds gold bars as one of the assets, then this would be considered as the liquid asset because gold can easily be converted into cash in case of need. Account Receivables, Gold, deposits receipts, securities, bonds, etc are considered to be the liquid assets of the company after Cash.

5 0
3 years ago
.
kobusy [5.1K]

Hi!

<em>Option C is correct.</em>

<em></em>

Explanation of the choices:

A. - This seems a good choice, however it's not the best choice. Let's come back to it.

B. - This is the best choice because they get to experience first-hand how to manage and make their own money decisions. Choice A might seem good at first, but we can see this is better because they get to make their own decisions and experience hands-on how to do it.

C - This is not a good choice, because it's best to expose children early so they can grow up knowing how to do it.

D - This choice doesn't make sense. What is the point of money if you store it away and don't spend it? This will likely not be a good lesson in the future.

Hope this helps! :D

5 0
2 years ago
Read 2 more answers
Garcia Industries has sales of $176,500 and accounts receivable of $18,500. The industry average DSO is 27 days, based on a 365-
Brilliant_brown [7]

Answer: 176,500 = 372,879

Explanation:

5 0
3 years ago
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