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sertanlavr [38]
4 years ago
14

Champagne, inc., had revenues of $12 million, cash operating expenses of $8 million, and depreciation and amortization of $1.5 m

illion during 2008. the firm purchased $700,000 of equipment during the year while increasing its inventory by $500,000 (with no corresponding increase in current liabilities). the marginal tax rate for champagne is 30 percent. free cash flow: what is champagne's free cash flow for 2008? $4,000,000 $3,250,000 $2,050,000 $2,500,000
Business
1 answer:
Hoochie [10]4 years ago
4 0

The free cash flow can be calculated as below:

Revenue 12000000

Less: Expense (8000000)

Less: Depreciation (1500000)

Earnings Before Tax 2500000

Less Tax (750000)

Earnings after tax 1750000

Add Depreciation 1500000

Total Cash Earnings 3250000

Less: Change in Working Capital (500000)

Less : Purchase of Asset (700000)

Free Cash Flow 2050000

Thus Free Cash Flow can be calculated as above.

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Forest Components makes aircraft parts. The following transactions occurred in July:
Marina86 [1]

Answer:

Explanation: see attachment below

7 0
4 years ago
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Identify and discuss five areas of modern business and the role ICT play in achieving business success
k0ka [10]

Answer:

The five areas of modern business and the role ICT play in achieving business success is discussed below in complete details.

Explanation:

ICT incorporates all digital technology that supports people, businesses, and establishments in managing messages and information. ICT helps by making a business more productive, efficient, and quickly react to customers' requirements. ICT can serve business ventures including layouts, production, Research and development, shipping and commerce, and feedback.

3 0
3 years ago
Shirley Paul's 2-stock portfolio has a total value of $100,000. $37,500 is invested in Stock A with a beta of 0.75 and the remai
Allisa [31]

Answer:

Beta= 1.17

Explanation:

Giving the following information:

Shirley Paul's 2-stock portfolio has a total value of $100,000. $37,500 is invested in Stock A with a beta of 0.75 and the remainder is invested in Stock B with a beta of 1.42.

To calculate the Beta of the portfolio, we need to use the following formula:

Beta= (proportion of investment A*beta A) + (proportion of investment B*beta B)

Beta= (37,500/100,000)*0.75 + (62,500/100,000)*1.42

Beta= 1.17

6 0
3 years ago
During the third quarter of this year a firm produces consumer goods and adds some of those goods to its inventory. During the f
MatroZZZ [7]

Answer:

The correct answer is B. They increase consumption and decrease investment.

Explanation:

It should be taken into account that in the fourth quarter of the year the company did not produce any type of consumer goods, it only did so in the third quarter and subsequently sold them. For this reason there was an increase in consumption when acquired by consumers, and the investment decreased because they were goods produced in another period.

4 0
3 years ago
In the introduction stage of the product life cycle, marketing efforts are focused on
Aleksandr [31]
The right answer for the question that is being asked and shown above is that: "a. building customer awareness of the product." In the introduction stage of the product life cycle, marketing efforts are focused on <span>building customer awareness of the product.</span>
8 0
3 years ago
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