Answer:
$300,000
Explanation:
The computation of the operating cash flow is shown below:
But before that EBIT should be determined
Sales $ 2,000,000.00
Less : Cost of Goods Sold $1,200,000.00
Gross Profit $800,000.00
Less: selling and general administrative expenses $500,000.00
Less: Depreciation expense $900,000.00
EBIT i.e. Operating Income/(Loss) $(600,000.00)
Tax at 21% $(126,000.00)
Since it is negative so the tax loss would not be determined
Now Operating Cash flow
= EBIT × (1 -T) + Depreciation expense - Chane in Working Capital
= EBIT + Depreciation expense
= -$600,000 + $900,000
= $300,000
Buying plan is often promised free or deeply discounted products
Answer:<em> Option (E) is correct.</em>
From the given option, the following will reduce Bankston's need to issue new common stock: <em>Increase the percentage of debt in the target capital structure.</em>
With an increase in percentage of debt , there will be a proportional increase in cost of equity and thereby decreasing investment in equity. This will therefore reduce Bankston's need to issue new common stock
Answer:
Explanation:
AAA AEP
Beginning balance, 1/1/20 200,000 110,000
Less: Distributions (140,000) (0)
Less: Loss (ordinary) (120,000) (0)
Ending Balance (60,000) 110,000
Here AAA is adjusted first for the distributions and then for the loss. The negative balance must be restored to a positive before the shareholders may receive any distributions that will not be taxed as dividend income.
Answer:
Appreciation in Investment Value = Percentage rise in value of investment
Explanation:
Capital Gain yield equals the appreciation in an investment's price. It is measured as percentage change over the original investment acquisition value.
Capital Gain Yield = Percentage (%) rise in value of an investment
= ( Rise in Value of Investment / Original Value of investment ) x 100
Eg : If a security purchased for 100 is now for 125 ;
Capital Gain Yield = (25 / 100) x 100
= 25%
