1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
maks197457 [2]
3 years ago
10

If accounts receivable and inventories increased by $85,000 (total), accounts payable increased by $14,000, and depreciation add

ed up to $64,000, what was the firm's net income?
Business
1 answer:
scoundrel [369]3 years ago
6 0

Answer:

We can't define the firm's net income without additional information as either (1) or (2):

1) Revenues/ all income, and all expenses

2) Operating cash-flow together with interest expense, and tax rate

Explanation:

If we can have the operating cash-flow, then we can define EBIT (profit/ earnings before tax and interest) as below:

Operating cash-flow = EBIT  + depreciation - increase of accounts receivable and inventories + increase of accounts payable.

Assuming Operating cash-flow is $100,000 then we have:

EBIT = $100,000 + $64,000 - $85,000 + $14,000 = $93,000

Assuming the firm have no interest expense and tax rate is 35%, then net profit = EBIT*(1- tax rate) = $93,000 * (1-35%) = $60,450

You might be interested in
The Evanstonian is an upscale independent hotel that caters to both business and leisure travelers. On average, one-third of the
iren [92.7K]

Answer:

Explanation:

1/3rd of the guests are leisure travelers

2/3rd of the guests are business travelers

Average leisure travelers stay for 3.6 nights

Average business travelers stay for 3.6*1/2 = 1.8

a)

It is given that on average day 135 guests check into The Evanstonian (R)

Leisure travelers = 135*1/3=45 guests per day(night)

Average number of leisure travelers = 45*3.6 = 162 guests

Business travelers = 135*2/3 = 90 guests per night

Average number of business travelers = 90*1.8 = 162 guests

b)

Total inventory = Leisure travelers + Business travelers = 162*2 = 324

Inventory turns = R/total inventory = 135/324 = 0.4167 turns per day

per month: 0.4167 * 30 = 12.5 turns

c)

324 rooms are booked for a night on average

We calculated that half of them are booked by leisure and half by business travelers

Therefore, average revenue is 1/2*250 + 1/2* 210 = 125 + 105 = $230

8 0
3 years ago
When a distributor is involved in international trade, there are two sets of invoices: one set between the exporter and the dist
Tanzania [10]

Answer:

A. True

Explanation:

Invoices also called bills in accounting is used for recording sales transactions and to account for requests and receipts for payments.

If a distributor becomes involved in trade beyond national borders, Two sets of invoices are used. The international trade invoices (1st set of invoices) being the transaction details between the seller (exporter from other country) and the buyer who is the distributor (importer). While the local or domestic involves (2nd set of invoices) would show transaction details between the distributor (who's now the seller) and the buyers or customers.

This happens because the two transactions are separate containing separate information of seller's and buyer's name, addresses, contacts details, tariffs or taxes and so on.

8 0
3 years ago
How do your financial choices impact the economy?
Slav-nsk [51]
You become broke cause you don't pay your bills on time or car notes that's why the economy is failing
<span />
5 0
3 years ago
Read 2 more answers
Suppose the U.S. yield curve is flat at 3% and the euro yield curve is flat at 5%. The current exchange rate is $1.4 per euro. W
Kruka [31]

Answer: hello your question is incomplete attached below is the complete question.

answer :

3.02 million,    2.96 million,    2.91 million

Explanation:

<u>Determine the swap rate over a 3-year period</u>

swap rate = forward exchange rate * exchange amount

For year 1

1.4 * ( 1 + 0.03 / 1 + 0.05 ) * 2.2 million

= 1.4 ( 0.98095 ) * 2.2

= 3.02 million

For year 2

1.4 * ( 1 + 0.03 / 1 + 0.05 )^2 * 2..2 million

= 1.4 ( 0.98095 )^2 * 2.2 million

= 2.96378 million

For year 3

1.4 * ( 1 + 0.03 / 1 + 0.05 )^3 * 2.2 million

= 1.4 ( 0.98095 )^3 * 2.2 million

= 2.90733 million  

3 0
2 years ago
A firm is productively efficient when:__________.
inna [77]

Answer:

Its is A

Explanation:

7 0
3 years ago
Other questions:
  • When looking at the statistics and opportunities available to college graduates you see that college graduates
    12·2 answers
  • The Tolar Corporation has 600 obsolete desk calculators that are carried in inventory at a total cost of $864,000. If these calc
    8·1 answer
  • Jow to make a stamp home made
    9·1 answer
  • Portions of the financial statements for Peach Computer are provided below.
    6·1 answer
  • For which of the following transactions would the use of the present value of an annuity due concept be appropriate in calculati
    15·1 answer
  • Is the time it takes to fly from city upper a to city upper time it takes to fly from city a to city b discrete or? continuous?
    11·1 answer
  • Clemmens Company applies overhead based on direct labor cost. Estimated overhead and direct labor costs for the year were $120,5
    7·1 answer
  • Collect 5 source documents and write a short essay on the importance of the 5 source documents you have attached
    10·1 answer
  • When Dianna does not know the outcome of each alternative until she has actually chosen that alternative, she is facing conditio
    13·1 answer
  • Type the correct answer in the box. Spell all words correctly.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!