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tino4ka555 [31]
3 years ago
9

King Nothing is evaluating a new 6-year project that will have annual sales of $410,000 and costs of $284,000. The project will

require fixed assets of $510,000, which will be depreciated on a 5-year MACRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, 11.52 percent, and 5.76 percent, respectively. The company has a tax rate of 35 percent. What is the operating cash flow for Year 3?a. $116,172b. $102,463c. $145,548d. $111,650e. $78,372
Business
1 answer:
motikmotik3 years ago
7 0

Answer:

Option (a) is correct.

Explanation:

Given that,

Sales = $410,000

Costs = $284,000

Depreciation Expense =  $510,000 × 0.1920]

                                     = $97,920

Therefore,

Operating Cash Flow:

= [(Sales - Variable Costs - Fixed Costs) × (1 - Tax Rate)] + [Depreciation × Tax Rate]

= [($410,000 - 284,000) × (1 - 0.35)] + [$97,920 × 0.35]

= [$126,000 × 0.65] + [$97,920 × 0.35]

= $81,900 + $34,272

= $1,16,172

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Misha Larkins [42]

Answer: Opportunity cost

Explanation:

From the question, we are informed that Joe sold gold coins for $1000 that he bought a year ago for $1000 and he said that at least he didn't lose any money on my financial investment.

We are further told that his economist friend points out that in effect he did lose money, because he could have received a 3 percent return on the $1000 if he had bought a bank certificate of deposit instead of the coins.

This is a concept of opportunity cost. Opportunity cost is what one forgoes when one makes a different choice. The opportunity cost in this case is the bank certificate of deposit.

4 0
3 years ago
Thornton Chicken Corporation processes and packages chicken for grocery stores. It purchases chickens from farmers and processes
maw [93]

Answer:

Chicken drumsticks:

pounds 6,600 -  7,230.22 = -630,22‬

market value: 6,600 - 5,478 = 1,122

Breast:

pounds 13,000 -  9037,88 =       3,962.12

market value: 13,000 - 10.790 = 2,210.00

Changing the allocation method detemriantes whether the drumstick are profitable or not thus, it should be considered which method is better suited.

Explanation:

Joint cost:

9,400 mateirals + 6,868 processing Total =

pounds to allocate cost:

\left[\begin{array}{cccc}Product&Sales&Weight&Cost\\Drumstick&4000&0.44&7230.22\\Breast&5000&0.56&9037.8\\\\Total&9000&1&16268\\\end{array}\right]

using market value:

\left[\begin{array}{cccc}Product&Sales&Weight&Cost\\Drumstick&6600&0.3367&5478\\Breast&13000&0.6633&10790\\\\Total&19600&1&16268\\\end{array}\right]

Then, we calcualte the gross margin under each method

Chicken drumsticks:

pounds 6,600 -  7,230.22 = -630,22‬

market value: 6,600 - 5,478 = 1,122

Breast:

pounds 13,000 -  9037,88 =       3,962.12

market value: 13,000 - 10.790 = 2,210.00

3 0
3 years ago
The amount of systematic risk present in a particular risky asset, relative to the systematic risk present in an average risky a
Margaret [11]

Answer:   Option A          

             

Explanation: For finance, an investment's beta (β or beta coefficient) is a measure of risk as opposed to idiosyncratic variables resulting from vulnerability to current market fluctuations.

The financial assets ' equity pool has a beta of precisely 1. A beta under 1 may imply either a less volatility in investment than the market, or a volatile portfolio whose price changes are not closely linked to the industry.Beta is relevant because it calculates the risk of a diversification-free investment.

6 0
3 years ago
The Revenue Reconciliation Act of 1993 modified the 1986 passive loss restrictions by allowing individuals who materially partic
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Answer:

The answer is "50%"

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Modify the state budget Act of 1974 to boost the FY in 1994 and 1995. It is the maximum federal debt quantity and also to set these other quantities for FY 1996 to 1998. Repudiates in the 1994 and 1995 boundaries on consumption spending.

In the Act of 1993, it modifies the 1986 active losses restrictions so, that it allowed rental damages from other revenues to also be deducted from persons who significantly participated such rental properties.  

The person may allocate 50% to his time towards services rendered throughout a tax year from the business.

4 0
3 years ago
Natural gas is often priced in units of dollars per therm. One therm equals 100,000 BTUs . A certain family uses 600 therms of e
ololo11 [35]

Answer:

-$28.8.

Explanation:

Note, we were told,

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<u>Savings on old furnace:</u>

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<u>Savings on new furnace:</u>

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Difference: $144 - $172.8 = -$28.8.

7 0
3 years ago
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