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3 years ago

7

Enterprise Free Cash Flows should include which of the following: I. Capital expenditures II. Financing costs III. Taxes IV. Wor

king capital requirements

1 answer:

valentina_108 [34]3 years ago

5 0

Answer:

I. Capital expenditures

III. Taxes

IV. Working capital requirements

Explanation:

Free cash flow = EBIT*(1 - tax rate) + depreciation - changes in net working capital - capital expenditure

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Schneider, Inc., had the following information relating to Year 1: Budgeted factory overhead: $74,800 Actual factory overhead: $

astraxan [27]

Answer:

<u>The actual direct labor hours are 45,000.</u>

<u>The overhead rate for Year 2 is $1.74.</u>

Explanation:

Compute the actual direct labor hours:

$\begin{aligned}\text{Actual direct labor hours}&=\dfrac{\text{Applied overheads}}{\text{Overhead rate}}\\&=\dfrac{\$76,500}{1.7}\\&=45,000\end{aligned}$

<u>Therefore, the actual direct labor hours are 45,000.</u>

Compute the overhead rate for Year 2:

$\begin{aligned}\text{Overhead rate}&=\dfrac{\text{Actual overheads}}{\text{Actual direct labor hours}}\\&=\dfrac{\$78,300}{45,000}\\&=1.74\end{aligned}$

<u>Therefore, the overhead rate for Year 2 is $1.74.</u>

<u />

Working note:

Calculate the overhead rate for Year 1:

$\begin{aligned}\text{Overhead rate}&=\dfrac{\text{Budgeted overheads}}{\text{Estimated direct labor hours}}\\&=\dfrac{\$74,800}{44,000}\\&=1.7\end{aligned}$

7 0

3 years ago

The following selected amounts are available for Waterway Company: Retained Earnings (beginning balance) $1,050 Net loss 150 Cas

never [62]

Answer:

Ending retained earnings balance is 700.

Explanation:

In order to find the ending retained earnings we will have to start from the beginning retained earnings. The beginning retained earnings are 1050. Because the company has a net loss of 150 we will subtract 150 from 1050. And we are left with 900. After this we will subtract the 100 cash dividends as these are also paid from the retained earnings that the company has so we are left with 800. Also the company pays a stock dividend worth 100 so we will also subtract that and are left with 700. So the ending retained earnings balance is 700.

3 0

3 years ago

Albert jones went to his local department store to purchase a pair of levi's. he thought that the style of levi that he wanted w

geniusboy [140]

The behavior of Albert is consistent with the law of demand.

The basic law of demand says that the higher the price of a commodity, the lower the quantity demanded; and the lower the price of a commodity, the higher the quantity demanded.

Albert went to his local store, hoping to buy a pair of Levi's for $30, however, when he got there, the price was lower at $18, he then decided to buy more than one because the price was lower. This is the law of demand taking place.

6 0

2 years ago

Your neighbor, Bayonetta, offers you an investment opportunity which will pay a single lump sum of $2,150 four years from today.

Olenka [21]

Answer:

18.24%

Explanation:

Annual rate of return is used in determining the return on an investment over a 12 month or one year period.

Annual rate of return = [(future value / cost ) ^( 1/n) ] - 1

future value = 2150

present cost = 1100

n = number of years = 4

(2150 / 1100)^(1/4) - 1 = 0.1824 = 18.24%

3 0

2 years ago

Some investment projects require that a company increase its working capital. Under the net present value method, the investment

zzz [600]

Answer:

Both an initial cash outflow and future cash inflow

Explanation:

Net value cash flow is the different cash flows that happens at different times. It takes into account the initial cash outflow or capital investment and the amount that it would be getting in the future that is the future cash inflow.

The net present value gives us a difference between cash inflows and cash outflows in their present values over a period of time.

3 0

3 years ago