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pishuonlain [190]
3 years ago
8

150-seat restaurant $8,000,000 is needed to construct the restaurant; no additional investment is needed in working capital.

Business
1 answer:
goldenfox [79]3 years ago
3 0

Answer:

The answer is $7400000

Explanation:

Solution

Recall that:

There is  no information is given about per unit cost or sales price hence, a reverse calculation is to be made to find out the projected total revenue.

Now,

The reverse calculation to find sales is computed as follows:

Begin from the expected profit + Tax expenses + Interest Expenses + undistributed expenses + variable cost

Thus,

From the calculation of each term is as stated below:

1. The profit expected = 15% return on their investment. it is to be after tax return, total investment = $8000000,

So,

The Profit expected  = $8000000 *15% = $1200000.

2. The tax xxpenses = 25% that is, it should be 25% on taxable profit which is  decreased from it and then net profit after tax is available,

Thus,

we have net profit after tax we can compute the  taxable profit as = $1200000 / 75% = $1600000.  for example, tax amount on taxable profit = $160000 * 25% = $400000.

3. The Interest Expenses = 5% of borrowed fund from bank,

Now,

The  borrowed fund from bank = $2000000 (8000000-6000000)

The expenses interest = $ 100000 ($2000000*5%)

4. Undistributed Expenses is stated as follows:

The Undistributed expenses are given in the question = $2000000.

5. Variable cost that is the labor cost and cost of food :

From the question it is given that it is 50% of the sales, which means the remaining 50% is the contribution.

Now

The contribution on reverse calculation is  computed as:

Profit +taxes + Interest + fixed expenses

Contribution = 1200000 + 400000 + 100000 + 2000000 = $ 3700000,

Thus,

We say,let the sales be 10 , then variable cost be 50 and contribution is 50, that means variable cost = contribution in this case.

so, in proportional calculation , the variable cost = $3700000 .

Thus

The projected sales = expected profit + Tax expenses + Interest Expenses + undistributed expenses + variable cost

The total revenue projected =$1200000+ $ 400000 + $100000 + $ 2000000 +$ 3700000

Therefore, the total revenue projected = $ 7400000

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Answer:

c) $7200

Explanation:

Preference dividends have preference when it comes to payment of dividends.

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Preference dividend = 900 shares x $100 x 4 % =  $3600

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Dividends in arrears at December 31, 2018 total $7200

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The correct answer is letter "A": True.

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Answer:

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your firm is contemplating the purchase of a new $545,000 computer-based order entry system. the system will be depreciated stra
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The IRR of the new computer-based order entry system is 22.87%.

<h3>What is the IRR?</h3>

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$545,000 - $96,000 = $449,000

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($165,000 - $109,00)(1 - 0.22) + $109,000 = $152,680

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To learn more about IRR, please check: brainly.com/question/26484024

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