What is the single most important factor in determining the success or failure

Last year, Stewart-Stern Inc. reported $11,250 of sales, $4,500 of operating costs other than depreciation, and $1,250 of deprec

Andrews [41]

Answer:

(1) Net income is reduced / decreased by $725

(2) Free cash flow is increased by $254

Explanation:

Before Change

Sales = 11250

-operating cost = 4500

-Depreciation = 1250

Net income before interest and tax = 5500

-Interest Expense = 228

Net income before tax = 5272

-Tax 35% = 5272 x 35% = 1845

Net income after interest and Tax = 3427

Free cash flow = CFO = Net Income before interest and Tax (1-Tax rate) + non-cash expenses – increase in non-cash net working capital.

CFO = 5500 (1-0.35) + 1250 – 2000 = 2825

After Change

New Depreciation = 1250 + 725 = 1975

Revise Net Income = 5500 + 1250 - 1975 = 4775

Effect on Net Income = 5500 - 4775 = Reduce / decrease by $725

Revised Free cash flow = Revised CFO = 4775 (1-0.35) + 1975 - 2000

Revised CFO = 3079

Effect on Free cash flow = 3079 - 2825 = increased by $254

5 0

3 years ago

You receive a part time job in which you are paid $10 per hour on weekdays and you receive $12 per hour

pantera1 [17]

Answer:

192.1

Explanation:

From monday and friday you earned 130$ because 6(10)+7(10)=130

Saturday you earned 96$ (12x8)

so adding those values you have 226$

you have to subtract 15% for tax.

So the equation would be

$226 \times .15 = 33.9 \\ 226 - 33.9 = 192.1$

4 0

2 years ago

Items for which prices are comparatively stable and likely to be quoted on a list-price-less-discounts basis are called:

Elis [28]

Answer: The correct answer is "standard production items".

Explanation: Items for which prices are comparatively stable and likely to be quoted on a list-price-less-discounts basis are called: standard production items.

These standard production items are those that are obtained from countless sources in an easy way, generally the prices of these items are obtained from online catalogs and although prices may vary it is rare since they are quite moderate.

4 0

4 years ago

The shareholders’ equity for the Fiesta Foods, Inc. on December 31, 2010 follows: 12% Preference share capital, P100 par, 20,000

fiasKO [112]

Answer:

26.65

Explanation:

The computation of the book value of an ordinary share is shown below

But before that the following calculations to be done

Balance for equity shares is

= Total shareholder equity - dividend paid to preference shareholders - redemption of preference shares

= 8,250,000 - (20,000 × 100 × 12% ×3) - (20,000 × 110)

= 8,250,000 - 720,000 - 2,200,000

= 5,330,000

And, the number of shares is 200,000

So, the book value of the ordinary share is

= 5,330,000 ÷ 200,000

= 26.65

6 0

3 years ago

Jennifer is a salesperson for a business insurance company. Recently she told several of her customers about new legislation tha

weqwewe [10]

Answer: Customer oriented.

Explanation:

The customers would see Jennifer as a customer oriented salesperson, who has the best motives for her customers. A customer oriented salesperson is very interested in making sure their customers succeed in achieving their goals.

8 0

3 years ago