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aliya0001 [1]
3 years ago
14

ou are trying to decide whether to accept or reject a one-year project. The project is estimated to generate $5,000 in increment

al gross profit, which includes $200 in depreciation. Incremental SG&A expense is $400. At a 35% tax rate, the after-tax incremental cash flow is:
Business
1 answer:
Papessa [141]3 years ago
3 0

Answer:

$3,190

Explanation:

Incremental net income before tax = Incremental gross profit - Incremental SG&A expenses

= $5,000 - $400

= $4,600

Incremental net income after taxes = Incremental net income before tax * (1 - Tax rate)

Incremental net income after taxes = $4,600 * (1 - 0.35)

Incremental net income before tax = $4,600 * 0.65

Incremental net income before tax = $2990

Incremental cash flow = Incremental income after taxes + Depreciation

Incremental cash flow = $2,990 + $200

Incremental cash flow = $3,190

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The following income statement was produced when volume of sales was at 400 units. Sales Revenue $ 1,600 Variable Cost 700 Contr
lilavasa [31]

Answer:

If volume reaches 500 units, net income will be: $715

Explanation:

When  volume of sales was at 400 units:

Selling price per unit = Sales Revenue/400 = $1,600/400 = $4

Variable Cost per unit = Variable Cost/400 = $700/400 = $1.75

If volume reaches 500 units:

Total Sales Revenue = $4 x 500 = $2,000

Variable Cost = $1.75 x 500 = $875

Fixed Cost will not change = $410

Net income = Total Sales Revenue - Variable Cost - Fixed Cost = $2,000 - $875 - $410 = $715

7 0
3 years ago
A Co. showed the following values for its inventory as of the end of its fiscal year: Historical cost $100,000 Current replaceme
Levart [38]

Answer:

$90,000

Explanation:

The reason is that the International Accounting standard IAS 3 Inventories says that the asset must be reported at lower of:

Cost &

Net realizable value

Here the cost is $100,000 and NRV is $90,000, which means that the inventory must be reported at $90,000 which is the lower value.

4 0
3 years ago
Read 2 more answers
You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend at 3.6 percent indefinitely
VMariaS [17]

Answer:

$45.76

Explanation:

Next dividend = Dividend just paid * (1 + Dividend growth rate) = $3.71 * (1 + 0.036) = $3.84356

Using the formula for the dividend discount model, we can calculate he price per share of the company's stock as follows:

Stock price = Next dividend / (Required return - Dividend growth rate) = $3.84356 / (0.12 - 0.036) = $45.76

Therefore, the price per share of the company's stock is $45.76.

3 0
3 years ago
Race, religion, type of dwelling, gender, brand last purchased, and buyer/nonbuyer are examples of:______.
Allisa [31]

Race, religion, type of dwelling, gender, brand last purchased, and buyer/nonbuyer are examples of <u>nominal measures</u>.

The nominal level of dimension is the least particular and informative, as it handiest names the 'characteristic' or 'identity' we're involved. In different phrases, in nominal variables, the numerical values simply "name" the characteristic uniquely. In this situation, the numerical value is truly a label.

Dwelling type refers back to the kind of living quarters in which a person resides. In general phrases, a dwelling is described as a set of dwelling quarters.  forms of living are recognized in the Census, collective dwellings and private dwellings.

A brand is an intangible marketing or enterprise concept that enables people to become aware of an agency, product, or man or woman. Human beings regularly confuse brands with such things as trademarks, slogans, or different recognizable marks, that are advertising and marketing equipment that help sell items and services.

Learn more about marketing here brainly.com/question/6988222

#SPJ4

6 0
2 years ago
Dave's marketing research returned the finding that customers were staying away from his bookstore because of a lack of services
-BARSIC- [3]

Answer: Knowledge gap

Explanation:

 The knowledge gap is one of the concept that helps in explaining the lack of knowledge about the specific concept and by identifying our own abilities, skills and knowledge we can easily identity our main factor of the lack of knowledge.

According to the given question, Dave is basically suffering from the knowledge gap as Dave is unaware about the fact that why people are satisfying away from his store.

 Based on the marketing research method he analyze that due to the lack of various types of services such as no return policies, gift cards offers and also the various types of special discount offers the people shows no interest in his book store.

 Therefore, Knowledge gap is the correct answer.  

6 0
3 years ago
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