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salantis [7]
3 years ago
8

Tater and Pepper Corp. reported free cash flows for 2018 of $58.1 million and investment in operating capital of $41.1 million.

Tater and Pepper incurred $15.5 million in depreciation expense and paid $20.9 million in taxes on EBIT in 2018. Calculate Tater and Pepper’s 2018 EBIT. (Enter your answer in millions of dollars rounded to 1 decimal place.
Business
1 answer:
DENIUS [597]3 years ago
8 0

Answer:

104.6 million

Explanation:

Data provided in the question:

Free cash flows for 2018 = $58.1 million

Investment in operating capital = $41.1 million

Depreciation expense = $15.5

Taxes on EBIT in 2018 = $20.9 million

Now,

EBIT

= Free Cash Flow + Investment in operating capital + Taxes - Depreciation

on substituting the respective values, we get

EBIT = $58.1 million + $41.1 million + $20.9 million - $15.5

or

EBIT = 104.6 million

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Dilution Solutions, Inc. repurchased 500 shares of its $2 par value common stock for $10,000. The effect of this transaction on
Sedbober [7]

Answer: $10,000 increase in Treasury Stock

Explanation:

Treasury stock, is also known refered to as the treasury shares and it occurs when stock is bought buy the issuing company back from the stockholders.

This results in the reduction in the total number of outstanding shares that can be found on the open market. In the above scenario, since Dilution Solutions, Inc. repurchased 500 shares of its $2 par value common stock for $10,000, this will bring about a $10,000 increase in the treasury stock.

3 0
2 years ago
What is the chronological order of the material cost flows through the subsidiary records? a. Materials Ledger Card, Receiving R
RoseWind [281]

Answer:

The correct order is option B.

Explanation:

As the order is in which the items are in the process of the subsidiary is given as by option B.

Option A is not true as the step of receiving report is not at the start of the process.

Option C is not true, because all the steps are not included.

Option D is not true as well because all the steps are not included.

5 0
3 years ago
Sheffield Corp. estimates its sales at 150000 units in the first quarter and that sales will increase by 15000 units each quarte
Varvara68 [4.7K]

Answer:

183,750

Explanation:

Data provided in the question:

Sales in the first quarter = 150,000 units

Increase in sales each quarter = 15000 units

Ending inventory = 25% of the current sales units

Now,

Ending inventory of first quarter = 25% of Units produced in the first quarter

= 0.25 × 150,000

= 37,500

Units produced in the first quarter = Sales +  Ending inventory of first quarter

= 150,000 + 37,500

= 187,500

Units to be produced in the second quarter

= Sales in second quarter - Ending inventory of first quarter + Ending inventory

=  [ 150,000 + 15,000 ] - 37,500 + 25% of [ 150,000 + 15,000 ]

= 165,000 - 37,500 + 41,250

= 168,750

Units to be produced in the Third quarter

= Sales in third quarter - Ending inventory of second quarter + Ending inventory

=  [ 150,000 + 15,000 + 15,000 ] - 41,250 + 25% of [ 150,000 + 15,000 + 15,000 ]

= 180000 - 41,250 + 45,000

= 183,750

4 0
3 years ago
Suppose a closed economy. Suppose there are a farmer, a baker and the consumers residing in this economy. Flour and bread are th
Darya [45]

Answer:

The total spending on all final goods and services produced is equal to $154,000.

Explanation:

The total spending on all final goods and services produced can be calculated as follows:

Total spending = Amount paid by consumers to farmer for flour + Amount paid by consumers to baker for bread + Government spending on hiring consumers ...................... (1)

Where;

Amount paid by consumers to farmer for flour = $20,000

Amount paid by consumers to baker for bread = $120,000

Government spending on hiring consumers = $14,000

Substituting the values into equation (1), we have:

Total spending = $20,000 + $120,000 + $14,000 = $154,000

Therefore, the total spending on all final goods and services produced is equal to $154,000.

3 0
3 years ago
A new home sold for $350,000. The tax rate is $.825 per hundred or fraction thereof. How much will the annual taxes be on this p
Sonbull [250]

Answer:

$2,887.50

Explanation:

$350,000 ÷ 100 = $3,500

$3,500 x 0.825 = $2,887.50

hope this helps :)

3 0
3 years ago
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