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sertanlavr [38]
3 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]3 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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Which of the following are normally recorded on a registration card?
elena55 [62]
DONT OPEN THAT LINK ITS A HACKER IT CAN HAVK YOUR PHONE
5 0
2 years ago
Allen Lumber Company had earnings after taxes of $630,000 in the year 2009 with 370,000 shares outstanding on December 31, 2009.
Firdavs [7]

Answer:

$2.00

Explanation:

Since there was an increase of 30% from 2009, Allen Lumber Company's earnings after taxes for 2010 were:

E= 1.30*\$630,000\\E=\$819,000

The total number of shares in 2010 was:

n=370,000+39,000\\n=409,000

Earnings per share for 2010 are determined by dividing total earnings by the number of shares:

E_S=\frac{\$819,000}{409,000}\\E_S=\$2.00

Earnings per share for the year 2010 were $2.00.

3 0
3 years ago
Suppose you manage a convenience mart and are in charge of ordering products but do not set the price. The home office provides
lakkis [162]

Answer:

c) 10% more peanut butter on the shelves

Explanation:

Since peanut butter has a negative income elasticity of demand (-0.5) with a decrease in income, there should be an increase in the demand. This is usually true for cheaper goods or goods with low added value. The change in demand (D) is represented as follows:

D=20\% * 0 .5\\D=10\%

As a result, you should stock 10% more peanut butter on the shelves.

The answer is c).

5 0
3 years ago
A problem that the Fed faces when it attempts to control the money supply is that a. since the U.S. has a fractional-reserve ban
NeTakaya

Answer:

A) since the U.S. has a fractional-reserve banking system, the amount of money in the economy depends in part on the behavior of depositors and bankers.

Explanation:

Since US banks operate under a fractional reserve banking system, they have the capacity to create money through the money multiplier, e.g. you deposit $1,000 in bank A, then bank A borrows $850 to Steven and he purchases a new bike from Sarah. Then Sarah deposits the money in bank B, and bank B borrows $722 to George who buys a laptop from Henry. Henry then deposits the money in bank C, and bank C borrows $614 to Susan, and this goes on and on.

The problem that the Fed faces is that in order for the fractional reserve system to work, households must hold their money in banks. Ans that is something that the government cannot control, specially the amount or portion that is deposited. The other players are banks, that ideally should borrow all the money that they are allowed to.

5 0
3 years ago
Private solutions to correct for externalities consider the following scenario:________.
Charra [1.4K]

Answer: Charities; coordinating negotiations among all of the parties too costly

Explanation:

From the question, we are told that that a chicken farm uses a nearby stream to dispose of the wastes that is released by its chickens and that the wastes flow downstream into a lake that has become polluted due to the waste matter. The local office of a nonprofit environmental organization then collects enough donations in order to stop the farm's pollution.

The type types of private solutions to the pollution externality which has occured is charity. This is because it is a voluntary activity. The money collected is meant for a specific objective which is to tackle the issue of pollution.

It is also vital to note that sometimes the private solutions to externalities might not work. For example, this occurs when communications barriers or social customs are important enough relative to the potential gains involved that coordinating negotiations among all of the parties too costly.

6 0
3 years ago
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