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kykrilka [37]
2 years ago
11

ABC, Inc. is considering purchase of a new equipment. The sales are expected to be $808,133 and the total cash expenses are expe

cted to be $394,925. The annual depreciation is $77,434 and the tax rate is 37.8%. What is the operating cash flow?
Business
1 answer:
Tanya [424]2 years ago
8 0

Answer:

Net Operating Cash Flow = $286,285

Explanation:

Total expected Sales = $808,133

Total Expected Expense = $394,925

Therefore cash revenue = $413,208

After this depreciation will be charged = $77,434

Net profit after depreciation = $335,774

Tax @ 37.8% = $126,923

Net profit after tax = $335,774 - $126,923 = $208,851

Add: Depreciation since non cash in nature = $77,434 + $208,851 = $286,285 = Net Operating Cash Flow

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podryga [215]

Answer:

A and B.

Explanation:

Understand  cost classification used for assigning costs to cost objects can be divided in direct costs and indirect costs.

Direct costs are those who can be easily and conveniently traced to a unit of product or other cost object. Examples are direct material and labor.

Indirect costs are those who cannot be easily and conveniently traced to a unit of product or other cost object. Example manufacturing overhead.

The common costs are the indirect costs incurred in support a number of cost objects. These costs cannot be traced to any individual cost object.

Determining cost tracing and allocation is more art than science, as it's difficult to trace costs with 100 percent accuracy.

Tracing costs becomes even more difficult when a cost goes toward producing multiple goods or services.

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which of the following is not one of the six functional areas of business that sits on a foundation of business law?
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2 years ago
One benefit of specialization is that it​
tiny-mole [99]
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3 years ago
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3 years ago
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Answer:

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Generally, marginal cost can be calculated by dividing the change in production costs by the change in level of output or quantity.

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