1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
KengaRu [80]
3 years ago
15

Cardinal Industries had the following operating results for 2018: Sales = $34,318; Cost of goods sold = $24,212; Depreciation ex

pense = $5,997; Interest expense = $2,710; Dividends paid = $1,996. At the beginning of the year, net fixed assets were $19,940, current assets were $7,054, and current liabilities were $3,992. At the end of the year, net fixed assets were $24,502, current assets were $8,684, and current liabilities were $4,673. The tax rate for 2018 was 22 percent. a. What is net income for 2018? (Do not round intermediate calculations.) b. What is the operating cash flow for 2018? (Do not round intermediate calculations.) c. What is the cash flow from assets for 2018? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.) d-1. If no new debt was issued during the year, what is the cash flow to creditors? (Do not round intermediate calculations.) d-2. If no new debt was issued during the year, what is the cash flow to stockholders? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.)
Business
1 answer:
JulsSmile [24]3 years ago
8 0

Answer:

a  $1,091.22

b $9,798.22

c - $1,709.78

d-1 $2,710

d-2  - $4,419.78

Explanation:

a. The computation of the net income is shown below:

= Sales - cost of good sold - depreciation expense - interest expense - income tax expense  

= $34,318 - $24,212 - $5,997 - $2,710 - $307.78

= $1,091.22

The income tax expense  

= ($34,318 - $24,212 - $5,997 - $2,710) × 22%  

=  $307.78

b. The operating cash flow is shown below:

= EBIT + Depreciation - Income tax expense

where,  

EBIT = Sales - cost of good sold - depreciation expense  

= $34,318 - $24,212 - $5,997

= $4,109

And all other items would remain same

Now put these values to the above formula  

So, the value would equal to

= $4,109 + $5,997 - $307.78

= $9,798.22

c. Computation of the cash flow from assets for 2019 is shown below:

= Operating cash flow - net capital spending - changes in working capital

where, net capital capital = ending fixed assets - beginning fixed assets + depreciation  

= $24,502 - $19,940 + $5,997

= $10,559

Changes in working capital = (ending balance of current assets - ending balance of current liabilities) - (beginning balance of current assets - beginning balance of current liabilities)

= ($8,684 -  $4,673 ) - ($7,054 - $3,992)

= $4,011 - $3,062

= $949

Now put these values to the above formula  

So, the value would equal to

= $9,798.22 - $ $10,559 - $949

= - $1,709.78

d.1 The computation of the cash flow to creditors is shown below:

= Interest expense - ending balance of long term debt + beginning balance of long term debt  

= $2,710 - 0 + 0

= $2,710

d.2 The computation of the cash flow to stockholder is shown below:

= Cash flow from asset - cash flow to creditors

= - $1,709.78 - $2,710

= - $4,419.78

You might be interested in
A company is considering investing in a project that costs $300,000. The company uses straight-line depreciation and estimates t
Vaselesa [24]

Answer:

NPV = $-41,928.18

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator:

Cash flow in year 0 = $-300,000

Cash flow each year from year 1 to 10 = $42,000

I = 10%

NPV = $-41,928.18

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

7 0
3 years ago
Read 2 more answers
Sanborn Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100,000 for the year.
Nana76 [90]

Answer:

d) 34.17

Explanation:

we must first calculate the total overhead expenses = $120,000 (ordering and receiving) + $297,000 (machine setup) + $1,500,000 (machining) + $1,200,000 (assembly parts) + $300,000 (inspection) = $3,417,000

since overhead is applied based on direct labor hours, then the predetermined overhead rate = total overhead expenses / total direct labor hours = $3,417,000 / 100,000 labor hours = $34.17 per labor hour

8 0
3 years ago
Logan Corporation has 30 employees, 10 in "A-line," and 20 in "B-line." Logan incurred $180,000 in fringe benefits costs last ye
fomenos

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Logan Corporation has 30 employees, 10 in "A-line," and 20 in "B-line." Logan incurred $180,000 in fringe benefits costs last year.

First, we need to calculate the allocation rate based on number of employees:

Estimated allocation rate= total estimated fringe costs for the period/ total amount of allocation base

Estimated allocation rate= 180,000/30= $6,000 per employee.

Now, we can allocate fringe costs to the A-line:

Allocated fringe costs= Estimated Estimated allocation rate* Actual amount of allocation base

Allocated fringe costs= 6,000*10= $60,000

3 0
3 years ago
The worlds first modern bank opened during the 14th century in this country
Naily [24]
The worlds first and modern bank opened during the 14th century in Florence, Italy and later many branches were established in other parts of Europe. Even though the banking system became very crucial in the 14th century, the Bardi and Peruzzi families were able to start and establish several branches during this century.
6 0
3 years ago
Your aunt wants to retire and has $375,000. She expects to live for another 25 years, and she also expects to earn 7.5% on her i
steposvetlana [31]

Answer:

$33,641.50

Explanation:

The computation of the amount withdrawn for the year is shown below:

As we know that

Present value = Annual withdrawals × Present value of annuity factor (7.5%,25)  

$375,000 = Annual withdrawals × 11.14694586

So, annual withdrawals is

= $375,000 ÷ 11.14694586

= $33,641.50

We simply applied the above formula so that the annual withdrawn could come

3 0
3 years ago
Other questions:
  • A company is assessing opportunities in the BRIC companies and determines that _________ is one of the youngest populations in t
    11·1 answer
  • The accounting book or computer program where each day's transactions are first recorded is called a:
    15·1 answer
  • Help please. 45 points.
    13·1 answer
  • Aircraft Products, a manufacturer of aircraft landing gear, makes 1,000 units each year of a special valve used in assembling on
    11·1 answer
  • When most economists wake up in the morning, their first decision is whether or not to his the snooze button on the alarm clock.
    8·1 answer
  • Goodmark Company produces two types of birthday cards: scented and regular. Expected product data for the coming year are given
    9·1 answer
  • Using an end-of-period spreadsheet, the flow of accounting information moves from the a.financial statements to the adjusted tri
    7·1 answer
  • The__________is based on a set of cause-and-effect linkages between internal and external performance, and in this fashion, defi
    15·1 answer
  • supplies expense is ______ and supplies is ______ for the amount of supplies used during the period that were originally recorde
    9·1 answer
  • What are the 4 important dimension of wellness explain each dimension?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!