An application , reference sheet
Answer:
Subtract operating costs, calculate taxes off of that number, and then add them back.
Explanation:
The computation of the operating cash flow is shown below:
= Earning before interest and taxes + Depreciation - Income tax expense
where,
Earning before interest and taxes = Sales - cost of good sold - depreciation expense
While calculating the incremental cash flows we deduct the operating cost, depreciation, tax expense and then added back the depreciation expense as it is a non cash expense
Answer:
C. Sole Proprietorship
Explanation:
Sole Proprietorship is a business owned and less capital required business that can be operated, it is can be operated even by an individual with a simple setup such as a table and a chair in a garage.
With Limited Liability Company (LLC), there are a lot of legal requirements to be reached before setting it up, such as putting in place board of directors, internal auditors and external auditors, mentioning few.
With Partnership it requires two or more individuals in order to operate in addition to a partnership deed.
With Corporation it is similar to the LLC
Thus Sole proprietorship is the simplest and easiest to set up.
Answer:
Total overhead= $550,000
Explanation:
Giving the following information:
The total fixed manufacturing overhead cost of $440,000
variable manufacturing overhead of $2.20 per machine-hour
50,000 machine-hours.
To calculate the total overhead, we need to sum to the fixed overhead the total variable manufacturing overhead:
Total overhead= 440,000 + 2.2*50,000= $550,000
