Answer: $4032.85
Explanation:
The following can be derived based on the information in the question:
Sales = $11,250
Less: operating cost = $5,500
Less: depreciation = $1,250
Operating income = $4500
Operating income = $4500
Less: Interest charges = $218.75
Taxable income = $4281.25
Taxable income = $4281.25
Less: Taxes = $1498.4
Net income = $2782.85
Net cash flow = Net Income + Depreciation
= $2782.85 + $1250
= $4032.85
N.B:
Interest charges= 6.25% × $3500
= 0.0625 × $3500
= $218.75
Taxes = 35% × $4281.25
= 0.35 × $4281.25
= $1498.4
If the investor is my client, i will advise him to enter a buy stop order at $40.
<h3>What is the
buy stop order?</h3>
In the share market, these are protective tool that are mainly for short sellers.
Now, as the stock should begin to rise from its current price of $38, once it reaches or exceeds $40, a buy order at the market is entered.
Hence, the stock purchased is used to cover the short position and the investor's profit is the $50 sale price minus the cost of the purchase.
However, because the investor is short term person, the only protective order would be a buy and not a sell.
Therefore, i will advise him to enter a buy stop order at $40
Read more about buy stop order
<em>brainly.com/question/14206094</em>
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Answer:
Depreciation: $4,000.00
Variable costs : $914.81
Explanation:
The value of the car when new = $19,860.00
Values after two years =$11,860.00
Accumulated depreciation for two years
= $19,860.00 - $11,860.00
=$8,000.00
Assuming straight depreciation method, depreciation each of the two years
=$8,000.00/2
=$4,000.00
Variable costs are the cost that changes with usages. In this case, variable costs are gas and oil, lube, and miscellaneous.
Variable costs = $845.96 + $68.85
Variable costs = $914.81
Answer:
B.
Explanation:
The benefits of bank reconciliation is to detect errors such as double payments, missed payments, calculation errors etc.
Therefore they will be no need for adjustment to be recorded for bank errors, outstanding checks, and deposits in transit.
The Company's preliminary Net Income can be determined as $575.
Preliminary net income = Total Revenue - Total Expenses
= $575 ($4,230 - $3,655)
Revenue:
d. Sales Revenue $680
f. Service Revenue $2,870
i. Service Revenue $680
Total Revenue $4,230
Expenses:
a. Wages Expense $1,700
e. Utilities Expense $1,360
h. Travel Expense $115
k. Advertising Expense $480
Total Expenses $3,655
Thus, the company generated a preliminary net income of $575 for the period.
Learn more about determining net income at brainly.com/question/19850768
