Answer:
$70,056
Explanation:
Per the above information, we need to calculate first, the Earnings before interest and tax (EBIT).
Sales
$361,820
Less: costs
($267,940)
Less: Depreciation expense
($16,500)
Earnings before interest and tax (EBIT)
$77,380
The next step is to calculate the applicable tax rate.
Tax [$77,380 - $9,310] × 0.35
$23,824.50
We will then calculate the Operating cash flow.
Earnings before interest and tax (EBIT)
$77,380
Add back depreciation expense
$16,500
Less tax
($23,824.50)
Operating cash flow (OCF)
$70,056
Therefore, the amount of operating cash flow is $70,056.
Answer: Perfect competition
Explanation: In a perfect competition market structure the number of sellers in the market is very large with each individual seller operating at a very small level. Due to small operation, no individual seller is capable enough to dictate or affect the price in the market.
The sellers in perfect competition are bound to take prices determined by market forces of demand and supply.
Answer:
$10,000
Explanation:
Calculation for How much of the 2017 minimum tax credit is refundable to LNS in 2018
Refundable minimum tax credit=($100,000-$80,000)*50%
Refundable minimum tax credit=$20,000*50%
Refundable minimum tax credit=$10,000
Note that the 50% represent the refund of the minimum tax credit that is still remaining
Therefore How much of the 2017 minimum tax credit is refundable to LNS in 2018 will be $10,000
Answer:
A. From the appreciation of the bonds
Explanation:
Zero or very low coupon bond do not pay much (coupon) in their life (so C eliminated). They are sold at a deep discount to investor. As time pass, the value of the bond usually increases to approach face value (hence A).
Normally investor still have to pay for the imputed ("phantom") interest that comes from their real return (B eliminated)
If interest rate increases, the bond will decreases in value to create the required return the new buyer when they eventually sell it (D eliminated)
