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MariettaO [177]
3 years ago
10

A firm has sales of $50,000, EBIT of $10,000, depreciation of $4,000, and fixed assets increased by $2,000. If the firm's tax ra

te is 30 percent and a $1,000 increase in net operating working capital, what is the firm's free cash flow?
Business
1 answer:
sergij07 [2.7K]3 years ago
4 0

Answer:

$8,000

Explanation:

Data provided in the question:

Sales = $50,000

EBIT = $10,000

Depreciation = $4,000

Increase in Fixed assets = $2,000

Tax rate = 30%

Increase in net operating income = $1,000

Now,

PAT = EBIT - Tax

= 10,000 - (30% of EBIT)

= $10,000 - (30% of $10,000)

= $10,000 - $3,000

= $7,000

Operating cash flow = PAT + depreciation

= $7,000 + $4,000

= $11,000

Therefore,

Free cash flow

= Operating cash flow - Increase in Fixed asset - Net working capital

= $11,000 - $2,000 - 1,000

= $8,000

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nasty-shy [4]

Explanation:

Company strategies evolve because

of the ongoing need to respond to changing market conditions, the fresh moves of competitors, shifting buyer needs and preferences, emerging market opportunities, new ideas for improving the strategy, and any evidence that indicates the strategy is not working well.

3 0
3 years ago
Consequmcws of inflation on the goverment? ​
Bogdan [553]

Answer:

Bad things will happen to you.

Explanation:

Raising prices can cuase market crashes and possibly strikes so raising prices on cheap items that have been that way for a while arent good especially when something bad is oging to happen, you should get a 2nd opinion this is just mine.

3 0
3 years ago
When Andy Forsummer, the owner of Barcelona Restaurants Group, rejects management philosophies that stress employee social relat
lbvjy [14]

Answer:

When Andy Forsummer, the owner of Barcelona Restaurants Group, rejects management philosophies that stress employee social relations and employee happiness, he is refuting ideas championed by <u>Henri Fayol's administrative management.</u>

Henri Fayol's administrative management usually looks at the clear decision of labor, work ethics, employee and organizational culture and spirit. It stresses upon how employee social relations and employee happiness is crucial to the success of an organization.

8 0
3 years ago
Jensen is 25 years old, and he will be starting his career as a business analyst. According to Levinson, Jensen is in the _____
Svet_ta [14]

Based on the research studies and situation described, according to Levinson, Jensen is in the <u>Novice</u> phase of adult development.

Daniel Levinson was a famous researcher whose interest centered on different stages of life from childhood to old age.

Daniel Levinson concluded that early adulthood lies between the ages of 17 to 45.

This early adulthood is then categorized into two, the <u>novice</u> phase between 17 to 33 and the culminating phase, which is between 33 to 45.

Thus, given that Jensen is 25, it is concluded that according to Levinson, Jensen is in the <u>Novice</u> phase of adult development.

Hence, in this case, it is concluded that the correct answer is "<u>Novice</u>."

Learn more here: brainly.com/question/1578703

6 0
2 years ago
Goodell Corporation just paid its annual dividend of $1.75, today. Dividends for the Goodell Corporation are expected to increas
AlekseyPX

Answer:

current price of Goodell Corporation stock is $48.26

Explanation:

given data

annual dividend = $1.75

expected to increase 1 year = 27.5 percent

expected to increase 2 year = 13.8 percent

expected to increase per year = 5 percent

required rate of return = 10 percent

solution

we get here first dividend that is

D1 = 1.75 × (1.275) = 2.23    ...............1

D2 = 2.23 × (1.138) = 2.54    ...............2

D3 = 2.54 × (1.05) = 2.67      ...............3

and

year 2 price will be

P2 = D3 ÷ (R – g)    ...............4

P2 = 2.67 ÷ (0.10 - 0.05)

P2 = 53.4     ...............5

so current price will be

P = 2.23 ÷ (1.10) + 2.54 ÷ (1.10)2 + 53.40 ÷ (1.10)2

P = $48.26

4 0
3 years ago
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