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RoseWind [281]
4 years ago
15

Calculating Economic Value Added East Mullett Manufacturing earned operating income last year as shown in the following income s

tatement: Sales $630,000 Cost of goods sold 380,000 Gross margin $250,000 Selling and administrative expense 174,400 Operating income $ 75,600 Less: Income taxes (@ 40%) 30,240 Net income $ 45,360 Total capital employed equaled $381,000. East Mullett's actual cost of capital is 8 percent. Required: Calculate the EVA for East Mullett Manufacturing. $
Business
1 answer:
Serjik [45]4 years ago
3 0

Answer:

$14,880

Explanation:

The formula to compute EVA is shown below:

= Net operating income or earnings after taxes - (Total capital employed × cost)

= $45,360 - ($381,000 × 8%)

= $45,360 - $30,480

= $14,880

We simply applied the economic value added formula so that the accurate value can come.

All other information which is given is not relevant. Hence, ignored it

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A u.s. firm sells merchandise today to a british company for £100,000. the current exchange rate is $2.03/£, the account is paya
Arturiano [62]
The answer to this question is "GAIN: $2,000". Hence when a United States<span> firm sells merchandise today to a British company for £100,000. the current exchange rate is $2.03/£, the account is payable in three months, and the firm chooses to avoid any hedging techniques designed to reduce or eliminate the risk of changes in the exchange rate. if the exchange rate changes to $2.01/£ United States firm will realize a GAIN of $2,000.</span>
5 0
3 years ago
Caitlin, Chris, and Molly are partners and share income and losses in a 3:4:3 ratio. The partnership’s capital balances are Cait
Nana76 [90]

Answer:

$94,080

Explanation:

Data provided in the question:

The partnership’s capital balances

Caitlin=  $128,000

Chris = $88,000

Molly = $108,000

Paul's equity = 20%

Amount invested by the Paul = $68,000

Now,

The total value of the capital = ∑ ( capital balances of each partner )

= $128,000 + $88,000 + $108,000 + $68,000

= $392,000

Therefore,

The balance in Paul's capital account immediately after Paul’s admission

= 20% of $392,000

= $78,400

Thus,

Balance in capital account for Caitlin, Chris, and Molly

= total value of the capital  - Balance in Paul's capital

= $392,000 - $78,400

= $313,600

also,

Share of Caitlin = \frac{3}{3+4+3} = 0.3

hence,

balance in Caitlin’s capital account immediately after Paul’s admission

= 0.3 × $313,600

= $94,080

4 0
3 years ago
Reiko started a business selling home medical supplies. She spent $5200 to obtain her merchandise, and it costs her $550 per wee
ratelena [41]

Answer:

it will take around 15 weeks to for Reiko to make a profit

Explanation:

Given:

Amount spent to obtain merchandise = $5,200

Cost of general expenses = $550

Earnings from sales per week = $900

Now,

Let 'x' be the number of weeks taken to make profit

thus,

Total cost involved = $5,200 + ( $550 × x )

Total profit from sales = $900 × x

for making profit

$900 × x ≥ $5,200 + ( $550 × x )

or

350x ≥ 5,200

or

x ≥ 14.85 weeks

thus,

it will take around 15 weeks to for Reiko to make a profit

7 0
4 years ago
Which BRIC country has not lived up to expectations due to a slowing economy political and social problems and being labeled as
mezya [45]

Answer:

The correct answer is:  Brazil.

Explanation:

Goldman Sachs coins in 2001 the term BRIC to refer to those major economies that were likely the most influential of the 21st century. BRIC is an acronym that joins the initial for the countries of Brazil, Russia, India and, China. Out of the four, Brazil's Odebrecht-Petrobras case has been spread all over the world as one of the biggest corruption cases known in economic history, where governmental representatives and even president <em>Luis Inacio Lula da Silva was involved</em>. Besides, the uneven distribution of wealth in Brazil is an ongoing problem that has been affecting its population for decades.

4 0
3 years ago
You would like to generate a number of potential ideas. What type of thinking would best facilitate this?a. Egocentric Tendencie
hammer [34]

Answer:

The correct answer is letter "C": Critical Thinking.

Explanation:

Critical Thinking is the type of thinking that allows individuals to discriminate and have a particular judgment over a specific matter. It helps by determining accuracy and validity on that topic by gathering a certain quantity of information to then highlight the most relevant.

7 0
3 years ago
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