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grin007 [14]
3 years ago
5

Pompeii, Inc., has sales of $53,500, costs of $24,400, depreciation expense of $2,600, and interest expense of $2,350. If the ta

x rate is 25 percent, what is the operating cash flow, or OCF?
Business
1 answer:
Rom4ik [11]3 years ago
6 0

Answer:

$23,062.50

Explanation:

The computation of the operating cash flow is shown below:

= EBIT + Depreciation - Income tax expense  + interest expense

where,  

EBIT = Sales - cost of good sold - depreciation expense  - interest expense

= $53,500 - $24,400 - $2,600 - $2,350

= $24,150

And, the income tax expense would be

= (Sales - cost of good sold - depreciation expense  - interest expense) × tax rate

= ($53,500 - $24,400 - $2,600 - $2,350) × 25%

= $24,150 × 25%

= $6,037.50

So, the OCF would be

= $24,150 + $2,600 - $6,037.50 + $2,350

= $23,062.50

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International businesses with markets and production facilities in other countries, or that use materials from different countri
lilavasa [31]

Answer: True

Explanation:

International businesses that has its markets and its production facilities in other countries, or a business that uses resources from other countries should understand the exchange rate system and how it works.

Different policies are pursued by the government and there's no universal exchange rate system, therefore it's vital for businesses to look at the foreign markets and their currency conversion.

7 0
3 years ago
Nancy checks her margin account and notices she has an SMA balance in her account. A 10% stock dividend was declared this mornin
hjlf

Answer:

Dividend declare has no impact on the SMA. RR would respond the following way.

Explanation:

SMA is known as “Special Memorandum Account”. It is simply a line of credit, neither cash nor equity. It is created with the market value of the securities increase in the value. The purpose of SMA is to maintain the buying power that is provided by unrealized gains towards the subsequent purchases. SMA is an appropriate way to maintain stable account value and minimize unnecessary accounts funding.

SMA increases with the increase in the value of the security, but does not decrease when the security falls in the value.

SMA is increased by the transactions such as cash deposits, interest income or dividend received or security sales. Dividend declared by the company creates a positive sentiments in the minds of investors. However, it will not create any impact on the SMA account, until it is actually received.

3 0
3 years ago
Read 2 more answers
An important problem facing the Fed is that Group of answer choices it lost effective control over the monetary base. the goals
Lena [83]
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4 0
3 years ago
The consumer's level of involvement can lead to two types of buying decisions: __________ or
Olenka [21]

Answer:

The consumer's level of involvement can lead to two types of buying decisions: limited problem solving or extended problem solving

Explanation:

limited problem solving:

It is a problem solving process in which customer is only willing to put very little effort to make a purchase decision in order to fulfill his want or need. Purchaser uses simple decision rules for reaching a a purchase decision with minimal research done. He is not much concerned about the best solution and has limited resources and time for searching information and assessing each alternative thoroughly.

For example: you need a new pair of joggers for gym.  You are already have an idea about joggers and know about new available materials and attributes. So you might do a bit research online and come to a decision comparatively quickly. You might consider your favorite outlet instead of searching for the joggers at every outlet. So you take buying decision limiting involvement in this process.

extended problem solving

In this process the costumer attempts to collect as much information as possible, and thoroughly assess and evaluate product alternatives. So in this situation buyer don't have much idea about the product brands, attributes and characteristics to access the product. Purchaser will research, differentiate and put a lot of effort for taking best buying decision that will fulfill his needs. prior to purchasing the product, he might visit various outlets, research online, search for reviews and suggestions, take information from outlet staff. about the product Marketer should provide with such information to customer.

For example high value items like car, a house etc. Such items are not purchased often so the consumer will invest a lot of time in research and comparison in order  to take the best decision.

6 0
3 years ago
If the number of unemployed workers is 19 million, the number in the working-age population is 500 million, and the unemployment
konstantin123 [22]

Answer:

labor force participation rate= 96.2%

Explanation:

Giving the following information:

Unemployed people= 19 million

Labor force= 500 million

<u>First, we need to calculate the employed people:</u>

<u></u>

Employed population = 500 - 19= 481 million

<u>Now, to calculate the labor force participation rate, we need to use the following formula:</u>

<u></u>

labor force participation rate= (employed people/labor force)*100

labor force participation rate= (481/500)*100

labor force participation rate= 96.2%

4 0
3 years ago
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