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Alexandra [31]
3 years ago
9

Consider the case of Purple Panda Pharmaceuticals: Next year, Purple Panda is expected to earn an EBIT of $2,000,000, and to pay

a federal-plus-state tax rate of 30%. It also expects to make $500,000 in new capital expenditures to support this level of business activity, as well as $35,000 in additional net operating working capital (NOWC). Given these expectations, it is reasonable to conclude that next year Purple Panda will generate an annual free cash flow (FCF) of (rounded to the nearest whole dollar).
Business
1 answer:
Effectus [21]3 years ago
3 0

Answer:

Purple Panda Pharmaceuticals

Annual Free Cash Flow (FCF):

FCF = Sales Revenue - (Operating costs + Taxes) - Required investments in operating capital or net operating profit after taxes - net investment in operating capital =

Net Income =              $1,400,000

additional NOWC =           35,000

Capital expenditures =  500,000

FCF = $865,000

Explanation:

a) Data and Calculations:

EBIT = $2,000,000

Tax = 30% or $600,000

Net Income =              $1,400,000

additional NOWC =           35,000

Capital expenditures =  500,000

FCF = $865,000

Purple Panda Pharmaceuticals' Free Cash Flow shows what is available for distribution to security holders after the payment of taxes.  Purple Panda will use the information from its Free Cash Flow to judge if a project will pay off and generate enough cash flow so that shareholders' value will be enhanced.

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amm1812

The number of burritos that will be supplied depends on the costs the supplier incurs.

You did not include any charts that can be used to answer this specific question so I will give a general answer.

When a supplier is deciding the price at which to supply a good, they look at:

  • Their costs both fixed and variable
  • The price others are charging
  • The demand for the good

The most important factor is their costs. If in this case, it costs more than $1 to produce a burrito, they will not supply burritos. If their costs are less than a dollar, the number of burritos supplied will then depend on other factors but they will supply some.

In conclusion, if the cost to make the burrito is less than $1, the supplier will supply no burritos but if the cost is less, they will supply based on other factors.

<em>Find out more at brainly.com/question/1908405.</em>

8 0
2 years ago
The charter of Vista West Corporation specifies that it is authorized to issue 300,000 shares of common stock. Since the company
Romashka-Z-Leto [24]

Answer:

1. Authorized shares = 300,000 shares

2. Issued shares = 160,000 shares

3. Outstanding shares

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= 160,000 - 25,000

= 135,000 shares

Explanation:

Authorized shares are shares that a firm is allowed by law to issue to the            public.

Issued shares are shares that a company offers to the public for subscription.

Outstanding shares are shares remaining after the share repurchase.

6 0
3 years ago
Pharoah Company reported net income of $1.30 million in 2022. Depreciation for the year was $208,000, accounts receivable decrea
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Net cash flow from operating activities

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Explanation:

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Cash flow from operating activities :

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Net Cash flow from operating activities:

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acountability, kill bureaucracy before it starts - more functions, fewer departments, more “teams,” fewer committees, open lines of communication, the customer is everybody’s responsibility, never stop “re-inventing” the business.

Explanation:

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Farmers contributed to the problems that led to the Dust Bowl by
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Hope it helps :) 
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