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laiz [17]
3 years ago
11

Oxygen Optimization is considering the caffeine project, which would involve selling caffeinated oxygen for 1 year. The firm exp

ects sales of caffeinated oxygen to be 68,000 dollars and associated costs from providing caffeinated oxygen (such as tanks, filters, etc.) to be 33,000 dollars. The firm believes that sales of regular oxygen, which is currently sold by the firm, would be 37,000 dollars less with the addition of caffeinated oxygen, and that costs associated with regular oxygen to be 25,000 less with the addition of the caffeinated oxygen. Finally, Oxygen Optimization believes that the introduction of caffeinated oxygen would increase traffic to its facilities, which would increase expected sales of other products (such as masks) by 17,500 dollars more than it would be without the addition of caffeinated oxygen, and increase costs by 12,000 more than it would be without the addition of caffeinated oxygen. What is the operating cash flow (OCF) for year 1 that Oxygen Optimization should use to analyze the caffeine project? The tax rate is 30 percent and the cost of capital is 12.09 percent. Relevant depreciation is expected to be 9,000 dollars.
Business
1 answer:
Korolek [52]3 years ago
3 0

Answer:

Operating cash flow is 20498.1979 dollars

Please take a look to the excel document attached

Explanation:

EBIT=Total sales-Operating cost=43268.8019-17842.8049=25425.997.

EBIT-Deprciation=25425.997-9000=16425.997

EBT-tax=16425.997-(4927.7991)=11498.1979.

Operating cash flow=EAT+Depreciation(NON CASH EXPENSES)

=11498.1979+9000=20498.1979 dollars

Download xlsx
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Deffense [45]

Answer:

The correct answer is option C.

Explanation:

The points on the production possibility curve show the efficient utilization of resources. The points below the curve show attainable but inefficient bundles. This is because the points below the curve imply that resources are not fully utilized and there are still some excessive resources left.

The points above the curve show those bundles that are unattainable. This is because these bundles need more resources to be achieved.

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2 years ago
When the accounts of Blue Inc. are examined, the adjusting data listed below are uncovered on December 31, the end of an annual
torisob [31]

Answer:

1.-

insurance expense   1,020 debit

    prepaid  insurance              1,020 credit

2.-

rent revenue   1,650 debit

            cash                          1,650 credit

cash      1,650 debit

   unearned revenue      1,650 credit

unearned revenue    1,100 debit

   rent revenue                      1,100 credit

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advertizing expense    535 debit

    advertizing supplies          535 credit

4.-

interest expense     802 debit

      interest payable         802 credit

Explanation:

2-years of 4,896 AKA 24 months

months outstanding during the year: August 1st to December 31th: 5 months

4,896 x 5/24 = 1,020

purchases of advertising materials  801

materials on hand at year-end       <u> (266)  </u>

advertising expense                         535

we must reverse the entry as the rent revenue wasn't accrued yet we have unearned revenue and at year-end we adjust for the earned protion which is 2 months: 1,650 x 2/3 = 1,100

as the inerest are accrued it means we aren't paying them at year-end

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3 years ago
If a person receives a paycheck for $600.00 and the government takes $200.00 in income taxes, it is a result of which amendment?
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Answer:

Sixteenth (16th)

Explanation:

The sixteenth amendment in the United States Constitution provides the right to Congress whereby, it can levy the taxes in the form of income tax on the amount of income, without segregating it in any manner, that is in no manner it is apportioned in relation to any number or weightage of the population concerned of the state.

This amendment thereby provides for straight tax as discussed in the example.

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3 years ago
Which type of organization means that there are few or no levels of managers in between the top people who run the company and t
forsale [732]
The type of organization is "flat organization".
Other names that are used for the flat organization are:
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3 years ago
3. How would your answer in part 2 change if the percentage of completion in ending inventory were as follows: materials 30%, co
dalvyx [7]

Answer and Explanation:

The computation is shown below:

<u>Particulars    direct   %                Equivalent Conversion %          Equivalent</u>

<u>                    material  completion units                              Completion   Units</u>

Beginning

WIP            1,020         100%         1,020      1,020         100%         1,020

Units

started       3,700       100%          3,700       3,700       100%          3,700

(7,200 - 3,500)

Ending

WIP           3,500        30%          1,050       3,500         40%           1,400

<u>Equivalent</u>

<u>units                                             5,770                                            6,120</u>

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2 years ago
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