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Mamont248 [21]
3 years ago
15

Catering Corp. reported free cash flows for 2008 of $8.14 million and investment in operating capital of $2.14 million. Catering

listed $0.95 million in depreciation expense and $2.14 million in taxes on its 2008 income statement. What was Catering's 2008 EBIT
Business
1 answer:
Neko [114]3 years ago
6 0

Answer:

Catering's 2008 EBIT is $11.47 million

Explanation:

Operating cash flow = EBIT + Depreciation – Taxes

Also the same as EBIT = Operating cash flow - Depreciation + Taxes

When Operating cash flow = Free cash flows + Investment in operating capital

OCF = $8.14 million + $2.14 m illion

Operating cash flow = 10.28 million

EBIT = Operating cash flow - Depreciation + Taxes  

EBIT = 10.28 million - 0.95 million + 2.1 4 million

EBIT = $11.47 million

Catering's 2008 EBIT is $11.47 million

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X Company and Y Company, operating on opposite sides of the country, manufacture equipment that is virtually identical except fo
Makovka662 [10]

Answer:

$14,000

Explanation:

Company X                                               Company Y

cost per equipment $75,000                  cost per equipment $65,000

sales price $105,000                                sales price $91,000

Both companies sold one unit and they exchanged clients in order to reduce shipping cost:

company X income = $105,000 (selling price) - $75,000 (COGS) + $14,000 (money received from company Y) = $44,000

company Y's income = $91,000 (selling price) - $65,000 (COGS) - $14,000 (money given to company X) = $12,000

This exchange resulted in company X's income increasing by $14,000, while company Y's income decreased by $14,000

6 0
3 years ago
Wadding Corporation applies manufacturing overhead to products on the basis of standard machine-hours. For the most recent month
kkurt [141]

Answer:

$114 unfavorable

Explanation:

For computing the overall variable overhead efficiency variance  first we have to need to find out the standard variable overhead rate which is shown below:

= ($11,680 + $41,900) ÷ 4,700 hours

= $11.4

Now the  variable overhead efficiency variance is

= standard variable overhead rate × (Actual machine hours - standard machine hours)

= $11.4 × (4,740 machine hours - 4,730 machine hours)

= $114 unfavorable

This unfavorable indicates the actual hours are more than the standard hours

6 0
3 years ago
You are the CFO of a US firm whose wholly owned subsidiary in Mexico manufactures component parts for your U.S. assembly operati
PSYCHO15rus [73]

Answer:

Explanation:

When the Peso depreciates by 30%, the firm can save money on the costs of production as the inputs would be less costly but the market for the firm in Mexico would be affected negatively as the depreciation of the peso would mean that now, the consumer can buy more goods with the same amount of money which will increase the demand. The loans that the subsidiary has taken would also be affected as it has to pay more for the collateral.

If the company reduces the inventory and stock the foreign receivables before the depreciation occurs to minimize the loss. Before the depreciation happens, the firm can convert the pesos denomination to the dollar so that its value doesn't fall.

8 0
3 years ago
Greenleaf Manufacturers, Inc. projected sales of 86,000 machines for 2022. The estimated January 1, 2022, inventory is 7,500 uni
Burka [1]

the budgeted production (in units) for 2022 will be 98,100

Production + opening stock= sales+ closing stock

Production + 7,500= 86000 + 19600

Production = 98,100

What do you mean by production budget?

The sales forecast and the anticipated amount of finished goods inventory to be on hand are combined to create the production budget, which determines the number of products that must be made (usually as safety stock to cover for unexpected increases in demand).

How important budgeting is in production process?

A production budget aids the business in planning output levels for varying demand times. A corporation can use the downtime to make an extra products to have on hand for a future period when demand increases if it anticipates that demand and production levels will be low in a month.

Learn more about production budget: brainly.com/question/18803390

#SPJ4

3 0
1 year ago
What is the themeof the story frojm the year of my birth​
Wewaii [24]
Answer: I don’t know the year you were born
7 0
3 years ago
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