Answer:
$27,175
Explanation:
Year 1
Sales $62,500
Depreciation $8,000
Operating Cost $25,000
Total Expense <u>($33,000)</u>
Income Before tax $29,500
Tax 35% <u>($10,325)</u>
Net Income <u>$19,175</u>
Interest Expense is not relevant to the project, It is a financing decision which will not be part of project calculation.
As the Net income includes the deduction of non cash item of depreciation. so, it will be added back to calculate the cash flow.
Cash Flow in year 1 = Net Income + Depreciation = $19,175 + $8,000 = $27,175
Answer:
5
Explanation:
Given that,
Beginning assets = $80,000
Ending asset = $120,000
Operating income = $200,000
Interest expense = $18,000
Average common stockholders’ equity = $20,000
Average total assets:
= (Beginning assets + ending asset) ÷ 2
= ($80,000 + $120,000) ÷ 2
= $100,000
Leverage ratio:
= Average total assets ÷ Average common stockholders' equity
= $100,000 ÷ $20,000
= 5
The process of production is complete when retailers prepare goods for sale to consumers. Hence, Option C is correct.
<h3>What is the production process?</h3>
Capital, labour, technology, land, and other resources are considered factors of production because they are utilised to produce output, which includes commodities and services.
One of the most crucial procedures in manufacturing is production, which is essential to understanding what it means to be a manufacturer. Without this activity, there would be nothing produced that could be sold to buyers as finished goods.
Therefore, Option C is correct.
Learn more about production process from here:
brainly.com/question/29355290
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