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kodGreya [7K]
3 years ago
9

A sports game company with current sales of $400,000 does not expect any growth in sales for the next two years. The company, ho

wever, anticipates that expenses, currently at $200,000, will increase to $210,000 next year and to $220,500 the year after. Assuming a tax rate of 34%, determine the firm’s cash flow in year two. Assume annual depreciation is $20,000.A. $112,360B. $125,270C. $145,890D. $178,330
Business
1 answer:
Ber [7]3 years ago
5 0

Answer:

Answer is B

Explanation:

Cash flow = Net Income + Adjustment for Non-Cash expenses

So we must first calculate the Net Income for the second year using the Profit and Loss Statement format:

Year 2

Revenue                  $400,000

Less Expenses       ($220,500)

Less Depreciation  ($ 20,000)

Profit before Tax     $159,500

Less Tax                  ($54,230)            {34% of Profit before Tax}

Net Income              $105,270

Add Depreciation    $20,000          

Cashflow                  $125, 270

{Remember Depreciation is a non cash expense, so we must add it to the Net income to arrive at the cash flow}

(Remember the company expects no change in revenue)

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Bonita Corporation’s December 31, 2018 balance sheet showed the following:
Marysya12 [62]

Answer:

$52,456,800

Explanation:

For computation of total stockholders’ equity first we need to find out the total capital stock and total paid in capital which is shown below:-

Total Capital stock = Preferred stock + Common stock

= $153,000 + $20,300,000

= $20,453,000

Total Paid in capital = Paid in capital in excess of par of common stock + Paid in capital in excess of par of preferred stock

= $25,000,000 + $59,000

= $25,059,000

Total stockholder equity = Total Capital stock + Total Paid in capital + Retained earning - Treasury stock

= $20,453,000 + $25,059,000 + $7,600,000 - $655,200

= $52,456,800 - $655,200

= $52,456,800

Therefore for computing the total stockholder equity we applied the above formula.

7 0
2 years ago
Which of the following is most likely to have inelastic demand?
iren [92.7K]
I think the answer is A
6 0
2 years ago
A perfectly inelastic supply curve means that … a) a shift in demand will cause the quantity supplied to increase to infinity. b
Jet001 [13]

Answer: A perfectly inelastic supply curve means that<u><em>  the quantity supplied is completely fixed.</em></u>

Perfectly inelastic supply states that supply is completely fixed. Therefore it is not affected by the change in price level.

<u><em>Therefore, the correct option in this case is (e)</em></u>

5 0
3 years ago
In the dell case study, engineers working closely with marketing, used lean software development strategies and numerous technol
Karolina [17]

In the dell case study, engineers working closely with marketing used lean software development strategies and numerous technologies to create a highly scalable, singular data mart.

<h3>What is Marketing?</h3>

This refers to the act of promoting a business or a good or service to the general public.

Hence, we can see that based on the Dell case study, there was the use of software development strategies to make and develop a highly scalable, singular data mart.

Read more about marketing here:

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7 0
2 years ago
Career Services, Incorporated sold some office equipment for $52,000 on December 31, 2021. The journal entry to record the sale
Papessa [141]

Answer:

Date of selling machine is 31 Dec 2021, then gain of $47,000

If date of selling this machine is 31 Dec 2012 (used tenor: 4 years), then gain of 2,000

Explanation:

Depreciation per year = (original cost $80,000  - residual value $5,000)/ useful life of 10 years

= $7,500 per year

Date of purchase: January 1, 2009

Date of sold:  December 31, 2021

⇒ Actual life of this machine = 13 years, but the maximum depreciation as accounting rule is for 10 year only

After 13 years, the book value = original cost - depreciation booked

= $80,000 - $7,500*10 = $5,000

Gain/ Loss =  sold price - boo value = $52,000 - $5,000 = $47,000

If date of selling this machine is 31 Dec 2012 (used tenor: 4 years), then we have:

Gain/ Loss = sold price - book value

= $52,000 - ($80,000 - $7,500*4) = 2,000

4 0
3 years ago
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