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lidiya [134]
3 years ago
14

5Hannaford Enterprises reported earnings before interest, taxes, depreciation and amortization (EBITDA) of $ 500 million in 1999

. The firm had depreciation of $ 80 million and reported capital expenditures of $ 120 million. In addition, the firm acquired another firm for $ 150 million during 1999, and reported amortization of $ 40 million for the year. Finally, the firm’s total working capital increased from $ 80 million to $ 180 million, but half of this increase was due to an increase in the cash balance; the firm has no short term debt. If the firm has a tax rate of 40%, estimate the free cash flow to the firm.
Business
1 answer:
diamong [38]3 years ago
6 0

Answer:

$28,000,000

Explanation:

EBIT = EBITDA - depreciation - amortization

        =  $500 - $ 80 - $ 40

        = $380 million

Net Income = EBIT - Tax @40%

                    = $380 - $152

                    = $228 million

Cash Flow from operating Activities:

=  Net Income - Increase in NWC (after reducing cash increase) + Back Depreciation + Back Amortization

= $228 - $50 + $ 80 + $ 40

= $298,000,000

Free cash Flow after Investing Activities:

= Cash Flow from operating Activities - Capital expenditure - Investment in another firm

= $298,000,000 - $120,000,000 - $150,000,000

= $28,000,000

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Answer:

a. Subassemblies

Explanation:

Subassemblies are one of the inputs to manufacturing and service-delivery processes. This is because these are small units that need to be assembled separately but then later become part of the final larger manufactured product. Therefore since they are part of the final manufactured product they are an input in the manufacturing process of that larger product needed in order for it to be finished.

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3 years ago
On January 15, 2021, Bella Vista Company enters into a contract to build custom equipment for ABC Carpet Company. The contract s
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recorded on March 31, 2021.

Explanation:

As we know that if there is an accural basis so the revenue is recognized and recorded when it is earned here the receipt of cash is not material for recording the revenue

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2 years ago
Boyle Company makes fine jewelry that it sells to department stores throughout the United States. Boyle is trying to decide whic
Ksivusya [100]

Answer:

Explanation:

a)

Fixed Costs of Bracelet A

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Annual depreciation 5,000$                                      

Total Fixed Costs   10,000$                

Fixed Costs for Bracelet B

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Total Fixed Costs $ 7,000        

b)

Variable Costs for Bracelet A

Cost of Materials per unit $ 10                                            

Cost of labor per unit $ 15

Total Variable Costs per unit $25

Variable Costs for Bracelet B

Cost of Materials per unit $20

Cost of labor per unit $15

Total Variable Costs per unit $35                          

c) Avoidable costs

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3 years ago
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galben [10]

Answer:

perfect competition; equal to $15

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2. Prices are equal to marginal revenue and average revenue.

3. plenty buyers and sellers.

4 free entry and exist of firms.

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2. Plenty buyers and sellers.

3. Price and average revenue are less than the marginal revenue

A monopoly is characterised by :

1. Firms that are price makers.

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3 years ago
How does a history of colonization in sub-saharan africa influence sustainable economic development in the region today?.
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Economies based on the exploration of raw materials were established in Sub-Saharan Africa.

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