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masya89 [10]
3 years ago
9

Consider the following information from Snuggie Corp.'s most recent Income Statement. Net Sales were $948, Operating Costs (excl

uding depreciation) were $222, and Depreciation and Amortization Expense was $115. The firm's Interest Expense for the year was $47, and the firm's marginal tax rate is 35%. The firm's Operating Cash Flow for the year is $_____________. Margin of error for correct responses: +/- $.05.
Business
1 answer:
sertanlavr [38]3 years ago
3 0

Answer:

Explanation:

EBIT = Sales - costs - depreciation

EBIT = $948 - $222 - $115

EBIT = $611

Profit before tax = EBIT - Interest

Profit before tax = $611 - $47

Profit before tax = $564

Tax = 0.35 * 564 = $197.4

OCF = EBIT - tax + depreciation

OCF = $564 - $197.4 + $115

OCF = $481.6

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What grade are you in my lord

Explanation:

4 0
3 years ago
Given a real rate of interest of 3.2%, an expected inflation premium of 5.1%, and risk premiums for investments A and B of 7.4%
blagie [28]

Answer:

a. Risk-free rate of return:

= Real rate of return + Inflation premium

= 3.2% + 5.1%

= 8.3%

b. Required return for investment A:

= Risk free rate of return + Risk premium

= 8.3% + 7.4%

= 15.7%

Required return for investment B

= 8.3% + 8.9%

= 17.2%

6 0
3 years ago
Department A had no Work-in-Process at the beginning of the period, 5,000 units were completed during the period, 600 units were
grin007 [14]

Answer:

$118,209

Explanation:

Weighted average costing adds the value of beginning inventory in the period cost to calculate the average cost per unit.

It is assumed that unit in work in process at the end of the period is incomplete in every aspect.

According to this method the equivalent units formula is as follow

Equivalent Units  = Unit completed and transferred to Finished goods + Units in Work in Process x Completion percentage

Equivalent Units  = 5,000 + 600 x 50% = 5,300 units

Total Cost = ( 5,300 x $10 ) + (38,280 + 30,620) x 5,300/5600 = $53,000 + $65,209 = $118,209

Note:

There is some inconsistency between the material cost and the total units. Material cost is calculated using 1,600 units and total numbers of units are 5,600. I took 5,600 units and calculated the costs.

6 0
3 years ago
In three or four sentences, describe why the vice president in a company makes a very high salary while a person who works in hu
o-na [289]

Answer:

Please see the answer below

Explanation:

A vice-president typically has a high level of responsibility in the company as compared to the HR Professional. VP oversees a significant portion of the company as well as to look after the all the company’s functions when CEO is not available. While the person in Human Resource is limited responsibility and should not be compared with VP. The Vice President salary is also commensurate with the amount of expertise, previous experience and the amount of risk that is associated in performing the duties of the post to keep the company profitable and in good standing.

5 0
3 years ago
What is it called when a company determines how much of a product to create.
Yanka [14]

Answer:

- Forecasting

Explanation:

Forecasting is a technique used by businesses to determine how much of a good to produce.  Companies rely heavily on past sales volumes to forecast future productions.  Apart from past sales, firms also consider trends in the industry and the countries economic status.

Forecasting is also known as projecting as it involves a rational way of predicting future productions.

7 0
3 years ago
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