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Oduvanchick [21]
3 years ago
13

Vasudevan Inc. recently reported operating income of $2.30 million, depreciation of $1.20 million, and had a tax rate of 25%. Th

e firm's expenditures on fixed assets and net operating working capital totaled $0.60 million. How much was its free cash flow, in millions?
Business
1 answer:
Korvikt [17]3 years ago
4 0

Answer:

free cash flow is 2.352 million

Explanation:

Given data:

operating income is $2.30 million

depreciation $1.20

tax rate is 25%

free cash flow is calculated by using below formula

free cash flow = operating  income ( 1- Tax) + depreciation -  fixed working capital

                       = 2.75( 1 - 0.25) + 1.20 - 0.6

                       = 2.352 million

free cash flow is 2.352 million

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If in the short run, firms in monopolistic competition make an economic profit, new firms will enter the market.

A firm is a for-profit business organization—such as a company, limited liability company (LLC), or partnership—that provides skilled services. Most companies have only 1 location.

Companies during a monopolistic competition build economic profits within the short run, however within the long-standing time, they create zero economic profit. The latter is additionally a result of the liberty of entry and exit within the trade. Restaurants, hair salons, home items, and clothing are examples of industries with monopolistic competition.

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1 year ago
Adjusting Entries are:
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Answer:

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Adjusting entries are done to update entries for previously unrecorded expenses or revenues. They are usually done at the end of the months.

Since accrual methods are the most preferred, they are done to make Financial statement achieve the objective of 'completeness'

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2 years ago
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tamaranim1 [39]

Answer: C. II and III

Explanation:

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PLEASE HELP!!!!! Nicholas starts a taxi cab business. He buys a garage, hires three drivers, buys two taxi-cabs, he sends his ca
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