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3 years ago

Consider the following income statement for Kroger Inc. (all figures in $ Millions):

Business

1 answer:

Darina [25.2K]3 years ago

7 0

Answer:

D) $179 million

Explanation:

The computation of the interest tax shield for the year 2006 is shown below:

= Interest expense in the year 2006 × tax rate

= $510 million × 35%

= $178.50 million

Simply we multiply the interest expense with the tax rate for the particular year so that the correct amount can come

All other information which is given is not relevant. Hence, ignored it

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On July 1, Arcola Company purchases equipment for $330,000. The equipment has an estimated useful life of 10 years and expected

Artyom0805 [142]

Answer:

a. $29,000

b. $214,000

c. Yes

Explanation:

a. Annual Depreciation expense:

= (Cost - salvage value)/ Useful life

= (330,000 - 40,000) / 10,000

= $29,000

b. Net book value at end of 4th year:

= Cost - 4 year depreciation

= 330,000 - (4 * 29,000)

= $214,000

c. One test to see if equipment is not impaired is that the Expected Undiscounted cashflows need to be higher than the net book value. This is not the case here as the Net Book value of $214,000 is higher than the expected Undiscounted cash inflows of $185,000. Equipment is therefore impaired.

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3 years ago

YO CAN YALL SEND HELP MY BRAIN ISNT WORKING TODAY

shusha [124]

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7 0

3 years ago

Read 2 more answers

The 1997 a value of an object was $5000. In 2012 , it was worth $9500. The annual percent growth has been constant. What is the

Mamont248 [21]

Given:
1997 - 5,000
2012 - 9,500

9,500 - 5,000 = 4,500
2012 - 1997 = 15 years

(9,500/5,000)^1/15 - 1
1.9^1/15 - 1
1.043718 - 1 = 0.043718
0.043718 * 100% = 4.3718%

The answer is D.) 4.37%

4 0

3 years ago

Read 2 more answers

You can invest in an account that pays simple interest or an account that pays compound interest. In either case, you plan to in

trasher [3.6K]

Answer:

You will receive $201.38 more interest if the investment is made with a compound interest rate rather than a simple interest rate.

Explanation:

Simple interest rate

We can calculate how much interests you'd obtain if you deposited the $2,600 in a simple interest rate account.

We start using the following formula for calculating the simple interests:

$I=P * r$

Where:

I are the interests per year,

P is the amount being invested,

r is the interest rate.

Replacing in the formula with the given values we have:

$I=2600*0.05=130$

We then proceed to multiply this result by the given number of years, which is 8. We get $130*8=1040$ .

Finishing with the simple interest rate, if we wanted to know how much is the investment worth at the end of a 8 year period, we must merely add the principal (the $2,600) to the total interests after the end of the period ($1040). So $2600+1040= 3640$ .

We'll use these results later.

Compound interest rate

The formula for compound interests is the following:

$I=P(1+r)^n$

Where:

I is the value of the investment after n years,

P is the principal amount being invested,

r is the interest rate,

n are the number of years the investment is compounded.

Replacing in the formula with the given values we have:

$I=2600*(1+0.05)^8=3841.38$

After the 8 year period, the investor will have $3841.38 in it's compounded interest account.

Comparing these results

We can simply substract the value of both investments at the end of a 8 year period, to determine how much more interest does the compound interest rate account give in relation to a simple interest rate account.

The values we've gotten were:

$3,640 for the simple interest rate account, and

$3,841.38 for the compounded interest rate account.

$3841.38-3640=201.38$ . Therefore the answer is: the account that pays compounded interests will pay $201.38 more to this invididual, compared to an account that pays simple interest.

8 0

3 years ago

The first part of setting strategic direction for an organization is to analyze the external and internal environments by prepar

ivanzaharov [21]

Answer:

Vision Statement

Explanation:

The first part of setting strategic direction for an organization is to analyze the external and internal environments by preparing a SWOT {Strengths , Weakness , Opportunities , and Threats } analysis. Once the SWOT is complete , the next step is to create a clear and compelling statement describing the inspirational long-term desired change resulting from an organization's work , called Vision Statement.

Vision Statement is a important point in strategical planning. It tells what an organization intended to achieve or we can say it highlight the objective of the organization .

Vision Statement should we short , simple and clearly specified. It plays an important role in an organization .

3 0

3 years ago