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s2008m [1.1K]
4 years ago
7

Assume a project has earnings before depreciation and taxes of $15,000, depreciation of $25,000, and that the firm has a 30% tax

bracket. What are the after-tax cash flows for the project
Business
1 answer:
algol134 years ago
4 0

Answer: $12,000

Explanation:

The following information can be gotten from the question:

Earnings before depreciation and taxes = $15,000

Less: depreciation = $25,000

The earnings before tax = -$10,000

Less: taxes at 30% = -$3,000

Earnings after tax = -$13,000

Add: depreciation = $25,000

Cash flow = $25,000 - $13,000

= $12,000

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Barnes Company reports the following operating results for the month of August: sales $300,000 (units 5,000); variable costs $22
eduard

Answer:

Option 2 ( Net Income 48100)

Explanation:

The current Net income is,

Sales - Variable Cost - Fixed Cost = Net Income

  • 300000 - 222000 - 71900 = 6100
  • While the Selling Price is 300000 / 5000 = 60 / unit

1. If option one is implemented,

  • New Selling Price = 60 * 1.1 = 66 / Unit
  • Sales Revenue = 66 * 5000 = 330000
  • Net Income = 330000 - 222000 - 71900 = 36100

2. New Variable Cost = 60 % of Sales = 300000 * 0.6 = 180000

  • Net Income = 300000 - 180000 - 71900 = 48100

3. New Fixed Cost will be = 71900 - 19000 = 52900

  • Net Income = 300000 - 52900 - 222000 = 25100
4 0
3 years ago
Rao Construction recently reported $28.00 million of sales, $12.60 million of operating costs other than depreciation, and $3.00
stich3 [128]

Answer:

a. $12.40

Explanation:

EBIT stands for earnings before interest and taxes; therefore, interest and taxes rates should not be considered. The EBIT is determined as the amount from sales deducted by operating costs and depreciation. The EBIT is:

EBIT = \$28.00-\$12.60-\$3.00\\EBIT=\$12.40

The answer is alternative a. $12.40.

6 0
3 years ago
One of the causes of the​ 2007-2009 financial crisis was a dramatic decrease in the value of​ mortgage-backed securities when ho
Darya [45]
For the answer to the question above,
<span> when a financial firm securitizes a mortgage, it means the sellers bundles them together and sells them to the investors.

In those years, they sell a house to an individual even though he can't afford it or they can't pay for it at all. So it will become a bad debt. Then they bundled this mortgages/debt and sells them to the investors. Which cause the collapse of the economy on those years.
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3 0
3 years ago
Read 2 more answers
Calculate total GDP for this economy given the following components of supply. Round your answer to the nearest tenth and enter
Sav [38]

Answer:

<em>The GDP Rounded to the answer to the nearest ten = $21 trillion</em>

Explanation:

What Is GDP?

<em>Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of the country’s economic health. </em>

<em>Though GDP is usually calculated on an annual basis, it can be calculated on a quarterly basis as well.</em>

<em></em>

<em>Using the The Expenditure Method - Aggregate Demand (AD) the formula for GDP is: </em>

GDP = C + I + G + (Ex - Im),

where “C” equals spending by consumers,

“I” equals investment by businesses,

“G” equals government spending and

“(Ex - Im)” equals net exports, that is, the value of exports minus imports.

GDP =

C = 3.8 + 2.7 + 12.2 = $18.7 trillion

I = 2.1 + 0

GDP = 18.7 + 2.1 = <em>$20.8 trillion </em>

<em>GDP = $20.8 trillion </em>

<em />

<em>Rounding the answer to the nearest ten = $21 trillion</em>

8 0
3 years ago
Westwick Inc. is an advertising agency. Its employees are allowed to take decisions and work in ways that will help maximize the
Roman55 [17]

Answer:organizational plurality

Explanation:Organizational plurality is when all members are empowered to contribute in a way that maximizes the benefits to the organization, customers, and themselves.

And the individuality of each member is respected by not segmenting or polarizing people on the basis of their membership in a particular group.

5 0
3 years ago
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