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3 years ago

Eric Company has the following information:

Business

1 answer:

Pani-rosa [81]3 years ago

6 0

Answer:

The amount of net revenues for Eric Company is 780,000

Explanation:

Net revenue is the sales (or total revenue) of a company from which returns, discounts, and other items are subtracted from.

Net revenue is calculated by following formula:

Net Revenue = Gross Revenue – Directly Related Selling Expenses (These are: Sales Returns, Sales Discounts....)

Eric Company has the data: Total Revenues 860,000 , Sales Returns and Allowances 50,000 , Sales Discounts 30,000

Net revenues for Eric Company = 860,000 - (50,000 + 30,000) = 860,000 - 80,000 = 780,000

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Answer: C. The worldwide economic situation

Explanation:

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4 years ago

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Suppose 50 people come to a fast food take-out restaurant each hour. There are four employees, one at the register, two making t

-Dominant- [34]

Answer:

- 50 people/ 60 min= 0.833 people per minute

- Register = 60min per hour/ 30 sec Per hour = 120 orders per hour.

- Making the food = 60 min/ 1.5 min = 40 orders x 2 employes = 80 orders per hour

- Paking the food = 60 min/ 1 min per food = 60 orders per hour

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3 years ago

Tryst Energy Inc. has an average age of inventory of 65 days, an average collection period of 60 days and an average payment per

zzz [600]

Answer:

The $600,000 amount is required to financing so that the cash conversion cycle can be supported

Explanation:

For computing how much financing is required, first we have to compute the cash conversion payable which is shown below:

Cash conversion cycle = Average age of inventory + Average collection period - average payment period

= 65 + 60 - 65

= 60 days

Now, we have to apply the financing formula which is shown below:

= Firm total annual outlays for operating cycle investment × cash conversion cycle ÷ total number of days in a year

= $3,650,000 × 60 days ÷ 365

= $3,650,000 × 0.16438

= $600,000

Hence, the $600,000 amount is required to financing so that the cash conversion cycle can be supported

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3 years ago

Katie Homes and Garden Co. has 13,200,000 shares outstanding. The stock is currently selling at $50 per share. If an unfriendly

melamori03 [73]

Answer:

1,980,000 $40

Explanation:

The following is given;

No. of outstanding shares = 13,200,000

Unit stock price = $50

Acquisition by the unfriendly outside group= 15%

The existing stockholders buy new shares at 20% below $50.

It is worth learning that poison pill is a tactic used by a company that's threatened with an unwelcome takeover bid to make itself unattractive to the bidder. Through the tactic, the company sells a large number of stocks to existing shareholders at lower prices. Thus,

a) the No. of shares to be sold to the unfriendly group

= 15% * 13,200,000 = 1,980,000

b) They will buy at 20% below $50 which translates to

$50*( 1- 0.2)

$50*0.8 = $40

Thus, the new purchase price will be $40 per stock

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3 years ago

The owner of a bicycle repair shop forecasts revenues of $236,000 a year. Variable costs will be $69,000, and rental costs for t

maria [59]

Answer:

A. $71,200

Bi)$100,200

Bii)$100,200

Biii)$100,200

Explanation:

A. Preparation of an income statement for the shop based on thee estimates

INCOME STATEMENT

Revenues $236,000

Expenses:

Variable costs $69,000

Rental cost $49,000

Depreciation $29,000

Total Expenses $147,000

Tax profit $89,000

($236,000-$147,000)

Less Income Tax (at 20%) $17,800

(20%*$89,000)

Net Income $71,200

($89,000-$17,800)

Therefore Net Income will be $71,200

bi) Calculation for the operating cash flow by using dollars in minus dollars out method

Using this formula

Operating cash flow=Revenue-Cash expenses-Taxes

Let plug in the formula

Operating cash flow=$236,000-($69,000+$49,000)-$17,800

Operating cash flow=$236,000-$118,000-$17,800

Operating cash flow=$100,200

Therefore the operating cash flow by using dollars in minus dollars out method will be $100,200

bii) Calculation of the operating cash flow by using adjusted accounting profits,

Adjusted accounting profit=$71,200+$29,000

Adjusted accounting profits=$100,200

Therefore the operating cash flow by using adjusted accounting profits will be $100,200

biii)Calculate the operating cash flow by using after tax operating cash flow

After tax operating cash flow=[$236,000-($69,000+$49,000)]*(1-0.20)+(0.20*$29,000)

After tax operating cash flow=($236,000-$118,000)*0.80+$5,800

After tax operating cash flow=($118,000*0.80)+$5,800

After tax operating cash flow=$94,400+$5,800

After tax operating cash flow=$100,200

Therefore the operating cash flow by using after tax operating cash flow will be $100,200

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3 years ago