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Reptile [31]
3 years ago
9

Colter Steel has $5,400,000 in assets. Temporary current assets $ 2,800,000 Permanent current assets 1,590,000 Fixed assets 1,01

0,000 Total assets $ 5,400,000 Short-term rates are 12 percent. Long-term rates are 17 percent. Earnings before interest and taxes are $1,140,000. The tax rate is 40 percent. If long-term financing is perfectly matched (synchronized) with long-term asset needs, and the same is true of short-term financing, what will earnings after taxes be?
Business
1 answer:
Mademuasel [1]3 years ago
3 0

Answer:

Explanation:

Long term Financing = Permanent Current Assets + Fixed Assets

Long term Financing = $1,590,000 + $1,010,000  = $2,600,000

Short Term Financing = Temporary Current Assets  = $2,800,000

Long Term Interest Expense = $2,600,000 * 0.17 = $442,000

Short Term Interest Expense = $2,800,000 * 0.12 = $336,000

Total Interest Expense = $442,000 + $336,000  = $778,000

Earnings before Taxes = Earnings before Interest & Taxes - Interest Expense

Earnings before Taxes = $1,140,000 - $778,000  = $362,000

Earnings after Taxes = Earnings before Taxes * (1 – Tax rate)

Earnings after Taxes = $362,000 * (1 – 0.40)  = $217,200

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Fortune, Inc., is preparing its master budget for the first quarter. The company sells a single product at a price of S25 per un
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Instructions are below.

Explanation:

Giving the following information:

Selling price= $25 per unit.

Sales (in units):

January= 45,000

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The cost of goods sold is $14 per unit.

The gross profit is calculated using the following formula:

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January:

Sales= 45,000*25= 1,125,000

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February:

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Gross profit= 605,000

March:

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3 years ago
You work for an auto manufacturer and distributor. How could you use information systems to
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If the domestic demand curve is Equal 20p Superscript negative 0.5​, the domestic supply curve is Equal 5p Superscript 0.5​, and
pishuonlain [190]

Answer:

$52

$ 1.33

  • consumer price will increase
  • consumer surplus will decrease
  • import will decrease
  • reduced export
  • portends gloom for the general outlook for the economy

Explanation:

Given domestic demand curve, S(p) = 20p⁻⁰°⁵

the domestic supply curve S(p)= 5p⁰°⁵

world price is ​$7.00

using  calculus to determine the changes in consumer​ surplus

by consumer surplus means in this case supply exceeds demand

we establish the equilibrium point where the supply and demand functions meet or are equal

solving 20p⁻⁰°⁵ = 5p⁰°⁵

     20/5 = p⁰°⁵/p⁻⁰°⁵

       4 = p⁰°⁵⁺⁰°⁵

      4= p = q which is the quantity produced

     

consumer surplus =  maximum price willing to pay - Actual price

                             = ∫⁴₀  dp dp - p* q

                               =  ∫⁴₀20p⁻⁰°⁵ dp- 7* 4

                              = 20∫⁴₀p⁻⁰°⁵ dp -28

                              = 20/0.5 p⁰°⁵- 28

                              = 40 *4⁰°⁵ - 28 =  $52

producer surplus = it is a measure of producer welfare. It is measured as the difference between what producers are willing and able to supply a good for and the price they actually receive

thus  producer  surplus = p* q - ∫⁴₀  d(s) dp

                                         = 7 * 4 - ∫⁴₀  5p⁰°⁵  dp

                                         = 28 - 5 ∫⁴₀   p⁰°⁵    dp

                                         = 28 -5 *2/3  p¹°⁵  

                                          = 28 -5 *2/3  4¹°⁵

                                          =$ 1.33

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5 0
3 years ago
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