Answer:
$22,671
Explanation:
The calculation of the cash flow for the year one is as follows:
Given amount $25,000
Less: Depreciation -$18,150
Earning before income and taxes $6,850
Less: Income tax expense -$2,329 ($6,850 × 34%)
Earning after taxes $4,521
Add: Depreciation expense $18,150
Annual cash flow $22,671
The depreciation expense is computed below:
= $55,000 × 33%
= $18,150
Answer: $367500
Explanation:
The correct amount of inventory that Oriole should report is calculated below:
Worth of inventory per physical verification = $320300
Add: Cost of goods that are consigned to Herschel Corporation = $47200
Therefore, the amount of inventory that Oriole should report will be the addition of the inventory worth and the cost of goods consigned to Herschel:
= $320300 + $47200
= $367500
