1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Snowcat [4.5K]
3 years ago
9

During the year, Belyk Paving Co. had sales of $2,275,000. Cost of goods sold, administrative and selling expenses, and deprecia

tion expense were $1,285,000, $535,000, and $420,000, respectively. In addition, the company had an interest expense of $245,000 and a tax rate of 21 percent. (Ignore any tax loss carryforward provision and assume interest expense is fully deductible.)
a. What is the company’s net income?
b. What is its operating cash flow?
c. Explain your results in parts (a) and (b)
Business
1 answer:
ycow [4]3 years ago
5 0

Answer:

a. -$210,000

b. $455,000

Explanation:

a. Company's net income

Sales. 2,275,000

Less:

Cost of goods sold

1,285,000

Administrative and selling expenses

535,000

Depreciation expense

420,000

EBIT

35,000

Less interest

245,000

Taxable income

-$210,000

Taxes 21%

Nil

Net income

-$210,000

b. The operating cash flow for the year

OCF = EBIT + depreciation - taxes

OCF = 35,000 + 420,000 - 0

OCF = $455,000

c. Net income was negative due to the deductibility of interest expense and depreciation.

The actual operating cash flow was positive due to the fact that depreciation is a non cash expense, and also interest is a financing and not an operating expense.

You might be interested in
Given the organization of the primary somatosensory cortex, why does a slap in the face hurt more than a slap on the back
Yuliya22 [10]
Delicate zones of the body consume up more room in the cortex: The more touchy a body part is, the more cortex space it has. The cortex has more space gave to the face than to the back: A great deal of room in the cortex is given to the face and none to the back.
7 0
3 years ago
Read 2 more answers
Suppose that consumers' incomes increased, such that more video games were demanded at each price level. After the increase in d
PSYCHO15rus [73]

Answer:

After the increase in demand, the new equilibrium price is <u>$160</u>, where both supply and demand equal <u>300</u>.

Explanation:

When the income level of customers increases, the demand curve shifts to the right, increasing the quantity demanded at every price level.

If the quantity demanded for a good increases as its customers' income increases, it is called a normal good.

In this case, the previous equilibrium quantity was 200 units and the equilibrium price was $50. Since the demand curve shifted to the right, both the quantity demanded increased from 200 units to 300, and the equilibrium price increased from $50 to $160.

8 0
3 years ago
If you could help me
MAVERICK [17]

When you are trying to reduce debt it is easier to cut out things that aren't necessary.

You need shelter so you can't cut out rent. Utilities will be hard to cut down since it is used a lot. School shouldn't be cut down either, because that is important for you future job which may help you reduce debt in the future

Dining out is the easiest to cut out/cut down first. Many people dine out because they don't have the time to cook or because they don't want to. If you really want to reduce debt then you can make the time to cook or find the motivation to. This will greatly reduce that big chunk of your money going to dining out, since cooking your own food is a lot cheaper.

Hope this helped!

~Just a girl in love with Shawn Mendes

8 0
3 years ago
Read 2 more answers
During 2014 Carne Corporation transferred inventory to Nolan Corporation and agreed to repurchase the merchandise early in 2015.
andriy [413]

Answer:a. Carne Corporation rtdfrtfv xcvbn

Explanation:

Nolan then used the inventory as collateral to borrow from Norwalk Bank, remitting the proceeds to Carne.

Here, goods are temporarily transferred to Nolan corporation to handle financial requirements and agreed to repurchase the merchandise early in 2015, thus the cost inventory will be recorded by Carne corporation.

This is a kind of product financing arrangement.

Hence, the cost of the inventory will appear Carne Corporation at the December 31, 2014 balance sheet date.

Thus, the correct option is a. Carne Corporation.

6 0
3 years ago
When the supervisor-to-subordinate ratio exceeds manageable span of control, additional Teams, Divisions, Groups, Branches, or S
vova2212 [387]

Answer:

Modular organization

Explanation:

A modular organizational structure refers to a business that can be separated and recombined to work more efficiently.

The key is to determine which modules or departments of your business are effective and can be outsourced to create a more adjusted organization

3 0
3 years ago
Read 2 more answers
Other questions:
  • Parrot received land as a gift with a fair market value of $5,000. The land was purchased by the donor for $8,000. The land is s
    15·1 answer
  • Which of the following statements regarding a firm’s optimal capital structure are true? Check all that apply. The optimal capit
    11·1 answer
  • The police power of the states: a. has no federal limitations. b. can extend to interstate business. c. has been severely curtai
    14·1 answer
  • What barriers to entry exist in other industries that allow certain firms to operate as a monopoly? Are these barriers contestab
    14·1 answer
  • Pedregon Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.95 Direct labor
    10·1 answer
  • Determine the cost assigned to ending inventory and to cost of goods sold using specific identification. For specific identifica
    10·1 answer
  • After examining the records of Theta Company for the month of October, the following information is obtained: Beginning cash bal
    6·1 answer
  • Meg O’Brien received a gift of some small-scale jewelry manufacturing equipment that her father had used for personal purposes f
    9·2 answers
  • I didn't sign up for this and I'd like my money back and to delete this account
    5·2 answers
  • The entry made at the end of the accounting period to record wages incurred but unpaid is:________
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!