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creativ13 [48]
2 years ago
9

For 2016, Gourmet Kitchen Products reported $22 million of sales and $19 million of operating costs (including depreciation). Th

e company has $15 million of total invested capital. Its after-tax cost of capital is 8% and its federal-plus-state income tax rate was 35%. What was the firm's economic value added (EVA), that is, how much value did management add to stockholders' wealth during 2016? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary.
Business
1 answer:
kifflom [539]2 years ago
5 0

Answer:

Explanation:

Economic value added (EVA) = Net operating profit after taxes - Invested capital * cost of capital

= [($22,000,000 - $19,000,000)*(1 - 0.35)] - [$15,000,000*8%]

= $750,000

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20. A company is in its first month of operations. On January 1, the company borrows $10,000 from the bank. The bank charges ann
goblinko [34]

Answer and Explanation:

amount borrowed = $10,000

interest rate =12%

interest accrued = $10,000*12%*1/12

                            = $100

date             general journal                          debit                    credit

jan 31            interest expense                       100                      

                        interest payable                                                    100

3 0
2 years ago
Fleet, Inc. manufactured 700 units of Product A, a new product, in 20Xl. Product Xs variable and fixed manufacturing costs per u
Ulleksa [173]

Answer:

The change in the dollar amount of inventory is $200 due to change in the inventory costing method.

Explanation:

The variable cost per unit is $6.00 while the fixed cost per unit is $2.00

Variable cost per unit = $6.00

Absorption cost pet units = $8.00

Total cost under absorption costing = Absorption cost per unit / number of units in ending inventory

Total absorption cost = $8.00 × 100 = $800

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Total variable cost = $6.00 × 100 = $600

Change in cost = Total absorption cost - Total variable cost

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3 0
2 years ago
For 2021, Rahal's Auto Parts estimates bad debt expense at 1% of credit sales. The company reported accounts receivable and an a
ziro4ka [17]

Answer:

$3,860

Explanation:

The balance in the account Allowance for Doubtful Accounts is expected to be the projected amount in receivables of the company that will not be converting to cash.

Therefore to calculate final balance of allowance for doubtful balance

Beginning balance                                                                 2700

Bad debt expense (410000*1%)                                            4100

Less: Written off                                                                   -2940

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So answer is $3,860

4 0
3 years ago
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