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Romashka [77]
3 years ago
9

Stanton Inc. is considering the purchase of a new machine that will reduce manufacturing costs by $5,000 annually and increase e

arnings before depreciation and taxes by $6,000 annually. Stanton will use the Modified Accelerated Cost Recovery System (MACRS) method to depreciate the machine, and it has estimated the depreciation expense for the first year as $8,000. Which of the following is the supplemental operating cash flow for the first year if Stanton's marginal tax rate is 40 percent?
Business
1 answer:
Greeley [361]3 years ago
7 0

Answer:

$9,800

Explanation:

supplemental cash flow for year 1 = [(decrease in costs + increase in earnings - depreciation) x (1 - tax rate)] + depreciation expense = [($5,000 + $6,000 - $8,000) x (1 - 40%)] + $8,000 = ($3,000 x 0.6) + $8,000 = $1,800 + $8,000 = $9,800

Since depreciation expense does not generate a cash outflow it must be included when you calculate taxes, but then you must add it later.

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Universal Containers (UC) is migrating from a legacy portal to a new Community. UC needs to stand up the new Community immediate
Juli2301 [7.4K]

Answer:

The answer for the Community template that the Community Cloud consultant should recommend is option c) Customers Account Portal

Explanation:

The Customer Account Portal template improves customer relationships and decreases service costs. The template provides features that make it easy for customers to see and pay invoices, update their account information, and search your knowledge base for answers.

The Customers Account Portal is the best option since Universal Containers (UC) is migrating from a legacy portal to a new Community and needs to stand up to the needs of the new Community immediately where users can ask questions and provide answers.

3 0
3 years ago
Mitch, a single tax-payer, earns $100,000 in taxable income and $10,000 in interest from an investment in city of Birmingham Bon
goldfiish [28.3K]

Answer:

E) None of the choices are correct.

<em>18.289,26‬</em>

<em>As we given an option with two decimals which are different from the calculated amount we should take it as incorrect. </em>

<em></em>

Explanation:

The municipal bonds are tax free. Therfore, not included.

We will calcuatae based on 2019 income tax brackets for single-taxers

between $82,501 to $157,500 the amount is $14,089.50 + 24% of the amount over 78,950

100,000 - 82,501 = 17,499

17,499 x 24% = 4,199.76

14,089.50 + 4,199.76 =<em> 18.289,26‬</em>

3 0
3 years ago
Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors ha
liraira [26]

Answer:

The indifference point is 10,000 units.

Explanation:

Giving the following information:

Two vendors have presented proposals. The fixed costs are $ 50,000 for proposal A and $ 70,000 for proposal B. The variable cost is $ 12.00 for A and $ 10.00 for B. The revenue generated by each unit is $ 20.00.

Proposal A= 50,000 + 12*x

Proposal B= 70,000 + 10*x

70,000 + 10x= 50,000 + 12x

20000= 2x

10000= x

The indifference point is 10,000 units.

8 0
3 years ago
Annual Income Statement Data Selected Year-End Balance Sheet Data Sales $ 50,000 Prepaid expenses increase $ 3,000 Expenses: Inv
Solnce55 [7]

Answer:

see calculation and working below

Explanation:

operating activities section

Net income                                                               $ 8,500

Adjust for changes in non- cash items :

Amortization expense                                                $1,500

Adjust for changes in working capital :

Prepaid expenses increase                                   ($ 3,000)

Inventory increase                                                     ($500)

Accounts payable decrease                                   ($1,000)

Net Cash Provided by Operating Activities            $5,500

6 0
3 years ago
George had a previous balance on his credit card of $330.19 on which he paid $50.00. He was assessed a finance charge of $4.20.
STALIN [3.7K]
The answer is $284.39.
6 0
3 years ago
Read 2 more answers
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