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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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Fitz Company reports the following information.
Paha777 [63]

Answer and Explanation:

The preparation of the operating activities section is presented below:

Cash flows from operating activities

Net income  $374,000

Adjustments made  

Add: Depreciation  $44,000

add: Amortisation expanses  $7,200

Add: Accounts receivable decrease  $17,100

Add: Inventory decrease  $42,000

Less: Prepaid expense increase  -$4,700

Less: Accounts payable decrease  -$8,200

Add: Wages payable increases  $1,200

Less: Gain on sale of machinery  -$6,000

Net cash provided by operating activities  $466,600

4 0
3 years ago
A point outside (to the right of) the production possibilities curve of a nation implies that this nation is using its resources
PtichkaEL [24]

Answer:

is not attainable for this nation

Explanation:

The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.  

The PPC is concave to the origin. This means that as more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.

Point outside the curve or to the right of the curve means that the production level is not attainable given the level of resources

Points inside the production possibilities curve means that the nations resources are not being fully utilised

Factors that cause the PPF to shift  

1. changes in technology.  

2. changes in available resources.  

3. changes in the labour force.  

8 0
3 years ago
Discuss the optimal method for procuring inputs that have well-defined and measurable quality specifications and require highly
lubasha [3.4K]

Answer:

By formation of legally binding contract.

Explanation:

Contacts are a good way for procuring inputs that have well-defined and measurable quality specifications and require highly specialized investments. Because of the high quality expected in the goods procured, having a legally enforceable contact will make the vendor provide high quality products that meets required specifications.

However when contracts dictate a particular price, so if the market price of input were to go down we will still be obligated to buy at the higher price from the vendor.

4 0
3 years ago
Jack Wills owns a commercial nursery. Jack has more business than he wants, in fact, he is presently turning away exciting new b
Jobisdone [24]

Options to Answer

A) business aptitude

B) entrepreneurial aptitude

C) commercial opportunity

D) business capacity

E) managerial capacity

Answer:

E. Managerial capacity

Explanation:

Managerial capacity has to do with the ability or capacity for an individual to manage a business. Managerial capacity problem has to do with those problems that occurs when growth in an organization is limited by the manager's capacity. The managerial capacity is attributed to personnel, expertise, intellectual and so on. Insufficient managerial capacity leads to loss business opportunities like in this case we have here. Because of his inability to take in more worker, he's losing more businesses.

6 0
3 years ago
Read 2 more answers
PHN Foods granted 18 million of its no par common shares to executives, subject to forfeiture if employment is terminated within
kap26 [50]

Answer:

The $12 million is the net increase in the denominator of the EPS fraction if the market price of the common shares averages $5 per share during 2018.

Explanation:

1. The journal entry is shown below:

For December 31, 2017:

Compensation Expenses A/c Dr ($18 million × $5 per share) ÷ 3 = $30 million

    To Restricted Shares $30 million

(Being compensation expenses recorded for 2017 year)

For December 31, 2018:

Compensation Expenses A/c Dr ($18 million × $5 per share) ÷ 3 = $30 million

    To Restricted Shares $30 million

(Being compensation expenses recorded for 2018 year)

2.  The net increase in the denominator of the EPS fraction for 2018 year  is shown below:

=  2018 shares - Restricted shares

= $30 million - $18 million

= $12 million

Hence, the $12 million is the net increase in the denominator of the EPS fraction if the market price of the common shares averages $5 per share during 2018

6 0
3 years ago
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