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fomenos
3 years ago
12

Carter Corporation made sales of $ 825 million during 2018. Of this​ amount, Carter collected cash for $ 710 million. The​ compa

ny's cost of goods sold was $ 290 ​million, and all other expenses for the year totaled $ 425 million. Also during 2018​, Carter paid $ 350 million for its inventory and $ 290 million for everything else. Beginning cash was $ 105 million.a. How much was Carter's net income for 2018?
b. How much was Carter's cash balance at the end of 2018?
Business
1 answer:
salantis [7]3 years ago
4 0

Answer:

Part (a) The net income of carter is $115 million.

Part (b) The closing cash balance at the end of year is $360.

Explanation:

Part (a) Net Income Computation:

Sales                                     $825

Cost of goods sold             <u>(</u><u>$290</u><u>)</u>

Gross Profit                          $535

Other Expenses                  <u>(</u><u>$425</u><u>)</u>

Net income                          $115 Million

Part (b) The cash balance of  Carter is not dependent on non cash flows. So the cash transactions would be considered here for cash balance computation.

Opening Cash position               $290

Collection from Sales                  $710

Inventory Invoices paid              ($350)

For  Everything                           <u>($290)</u>

Closing Cash balance                 $360

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On February 22, Brett Corporation acquired 250 shares of its $3 par value common stock for $26 each. On March 15, the company re
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3 years ago
A 60,000 square meter rectangular yard is to be enclosed on three sides by wood fencing that costs $25.00 per meter and on the f
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Answer:

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y = \sqrt{\frac{3900000}{50}}= 279.285

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For this case the graph attached illustrate the problem for this case

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xy = 60000

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x = \frac{60000}{y}  (1)

Now we can define the cost function like this:

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Since we need to minimize the cost, we can derivate the function in terms of y and we got:

C'(y) = 50 -\frac{3900000}{y^2}=0

And we can solve for y and we got:

y = \sqrt{\frac{3900000}{50}}= 279.285

And using condition (1) we can solve for x and we got:

x= \frac{60000}{279.285}= 214.834

So then the minimum cost for this case would be:

C = 50*279.285 + 65*214.834 = 27928.49

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