1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kykrilka [37]
3 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]3 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

You might be interested in
RT is about to loan his granddaughter Cynthia $10,000 for 1 year. RT’s TVOM, based upon his current investment earnings, is 12%,
qaws [65]

Answer:

They should not be able to successfully negotiate the terms of this loan within these parameters.

Explanation:

It has been provided that RT earns 12% on his current investments and would not like to receive an interest rate of less than 12% on the loan he gives.

if RT gives a loan of $10,000 for one year, he would charge an interest rate of minimum 12%.  

Interest = $10,000*0.12

             = $1,200

RT requires $1,200 in interest.

It has been provided that Cynthia earns 8% on her investment.

If she borrows $10,000 and invests the amount for one year, she can earn 8% return on such amount.  

Earning = $10,000*0.08

             = $800

Cynthia is going to earn $800

RT requires a minimum of $1,200 as interest for 1-year loan he gives while Cynthia can pay a maximum of $10,000 as interest for 1-year loan she takes. there is mismatch between the minimum expectation to receive of lender and the maximum expectation to pay of borrower.

Therefore, They should not be able to successfully negotiate the terms of this loan within these parameters.

6 0
3 years ago
If a patent lawyer works for a startup without cash compensation, but receives instead shares in the presumably soon-to-be-succe
masha68 [24]
<span>sweat equity, the patent lawyer is doing for a project or enterprise in the form of effort to work for the ownership interest in a business that will increase in value it is a preferred mode of building equity for entrepreneurs who do have much money in their start-up ventures since they may be unable to provide as much financial capital to their business</span>
8 0
4 years ago
Which belief best reflects the economic theories of Karl Marx?
Shtirlitz [24]

Answer:

B. Class tensions will lead to the end of market economies.

Explanation:

According to the Marxists theory, the tension between the capitalist and the working class gives birth to the class conflict in the society. It is tension that is created as the result of the exploitation and conflict between the two. This conflict further would initiate a revolution among the working class that would turn the capitalist class upside down. The exploitation faced by the working class by the capitalists is the major force that would turn them to be rebellious.

7 0
3 years ago
What are two examples of management information systems?
Anettt [7]

Answer:

process control systems, human resource management systems, sales and marketing systems, inventory control systems, office automation systems, enterprise resource planning systems, accounting and finance systems and management reporting systems.

Explanation:

8 0
3 years ago
How do developed countries maintain an advantage over
maks197457 [2]
  • Developed countries work on their industrialization more than developing countries by maintaining their industries up to date by introducing all recent techniques that help in growth.
  • They work on their ca-pita and GDP more as compared to developing countries.
  • Increase their literacy rate.
  • Make their infrastructure more and more powerful and up to date.
  • Develop more revenue by introducing new techniques and creating labs on which they research the feasibility analysis of techniques they can improve.
  • Make their standards of living more high.
  • Utilize their resources effectively and efficiently.
  • Make their birth and death rate as low as possible.
6 0
3 years ago
Other questions:
  • Why have the fortunes of the English gentry degenerated?
    5·1 answer
  • TB MC Qu. 4-44 Privott, Inc., manufactures ... Privott, Inc., manufactures and sells two products: Product Z9 and Product N0. Th
    11·1 answer
  • A manufacturer of small copiers makes a profit of $200 on a deluxe model and $250 on a standard model. The company wants to prod
    5·1 answer
  • True of false the supreme court has ruled that the government can sometimes claim exigent circumstances if the exigency is creat
    15·1 answer
  • Choose one current event. Describe the event and discuss the economic implications of this event. What economic effects might th
    5·1 answer
  • What is the difference between the turbo button and the victim button
    8·1 answer
  • Right now, there are people all over the world who are just like you. They're either lonely, they're missing somebody, they're d
    6·1 answer
  • New shoes are on SALE. You find a pair you like for $85 dollars. But you only have $45 with you. So, you pay $40 and
    13·1 answer
  • Dave Ramsey's investing principles.
    13·1 answer
  • Speciation has occurred in a species population once ________.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!