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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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Jackie has one risk-free asset and one risky stock in her portfolio. The risk-free has an expected return of 3.2 percent. The ri
masha68 [24]

Answer:

Portfolio Return = 11.975%

Explanation:

The portfolio return is calculated by taking the weights of individual securities in a portfolio and multiplying them by the return of individual securities. The formula can be written as,

Portfolio return = wA * rA + wB * rB

Where,

  • wA is the weight of security A
  • rA is the return on security A
  • wB is the weight of security B
  • rB is the return on security B

The risk free asset has a beta of zero.

Let the weight of risk free asset be x. The weight of risky asset is 1-x.

Portfolio beta =       0.975 =  x * 0 + (1-x) * 1.3

0.975 = 1.3 - 1.3x

0.975 - 1.3 = -1.3x

-0.325 / -1.3 = x

x = 0.25

Portfolio return = 0.25 * 0.032 + (1-0.25) * 0.149 = 0.11975 or 11.975%

8 0
3 years ago
A fully global organization might set up a ________ with a foreign company to create a new, independent company that produces a
kotykmax [81]

<u>A fully global organization might set up a </u><u>joint venture</u><u> with a foreign company to create a new, </u><u>independent company </u><u>that produces a specific product.</u>

When businesses expand internationally, they frequently begin small?

When businesses expand internationally, they frequently begin by merely exporting their goods to one or more foreign nations.

Exists a company that runs operations in multiple nations?

  • A multinational corporation is one that has operations and business locations in two or more different nations.
  • These businesses are frequently run from a central office with its headquarters in the nation of origin.

What attribute best describes a transnational corporation?

A "borderless organization" with numerous operations and no central headquarters is referred to as a transnational corporation.

Learn more about multinational corporation

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5 0
1 year ago
For each item listed below, indicate the allocation terminology for the item. Use the following terms for your answer:
nexus9112 [7]

For each item listed the allocation terminology for the items are as follows:

Amortization: Copyrights, Patents, Trademarks and Annual licensing fees.

Depreciation:  Buildings, Equipment and Land Improvements.

Depletion: None.

None of these: Land, Research and Development Costs and Franchises.

<u>Explanation:</u>

Throughout accounting, amortization applies to multiple-period distribution of revenues. The concept is used for two isolated processes: loan amortization and asset amortization. Depreciation is the reduction in asset value and the process used to redeploy or "write down" a tangible asset's expense (like equipment) over its expected life period.

Depletion is a term of accounting and taxation generally used in coal, forestry, petroleum, or other related industries. Depletion is identical to depreciation in that it is an accounting and tax tracking system for cost recovery.

8 0
3 years ago
On November 1, 2017, Austin Services issued $305,000 of five-year bonds with a stated rate of 12%. The bonds were issued at par,
sergiy2304 [10]

Answer:

$12,200

Explanation:

Calculation to determine the amount of interest expense was recorded for the period of January 1 to April 30, 2018

Interest expense=$305,000*12%*4/12

Interest expense=$12,200

Therefore the amount of interest expense was recorded for the period of January 1 to April 30, 2018 is $12,200

8 0
2 years ago
Some managers set long-term goals and define strategies to achieve them. These are
Katarina [22]

Some managers set long-term goals and define strategies to achieve them. These are top level managers.

<h3>Top-level management comprises:</h3>
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  • Director of Operations
  • Information Director
  • Administrative Director
  • Senior Executive
<h3 /><h3>Roles of top-level managers:</h3>

They exercise company governance, that is, they direct organizational systems in order to achieve the objectives and goals established for a company to be well positioned and profitable in the market.

Therefore, the top management of a company must be composed of visionary leaders who adapt to internal and external business conditions, seeking the best solutions for the business demand.

Find out more information about top-level managers here:

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2 years ago
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