Answer:
-$300 million
Explanation:
Change in net working capital (CNWC) = $100 million
Capital Expenditures (CE) = $200 million
Assuming no depreciation expenses, the free cash flow (FCF) is given by:
![FCF = EBIT*(1-tax) - CNEC - CE](https://tex.z-dn.net/?f=FCF%20%3D%20EBIT%2A%281-tax%29%20-%20CNEC%20-%20CE)
Since no revenues are expected until the next year, EBIT = 0.
![FCF = - \$100 -\$200\\FCF = - \$300\ million](https://tex.z-dn.net/?f=FCF%20%3D%20-%20%5C%24100%20-%5C%24200%5C%5CFCF%20%3D%20-%20%5C%24300%5C%20million)
The project's free cash flow today is -$300 million.
Answer:
b. $358,500
Explanation:
Given;
Retained Earnings at December 31, 2018 = $300,000
In 2019,
Revenue = $600,000
Expenses = $525,000
Declared and paid dividends = $16,500
Retained earnings on the balance sheet as of December 31, 2019
= $300,000 + $600,000 - $525,000 - $16,500
= $358,500
The right option is b. $358,500
Answer:
The first and last sentences are both correct usage of commas.
Answer:
$267,000
Explanation:
Total manufacturing cost refers to the sum of all expenses incurred by a firm in the production process in a period. Total manufacturing cost is compared with total revenue to determine profitability. The calculation of total manufacturing involves additional direct materials, direct labor, and overhead costs.
Therefore, total manufacturing cost = Direct materials +Direct labor + overhead costs.
For crane company:
$390,000= $59,000 + $ 64,000 + direct labor
= $390,000= $123,000 + direct labor
=Direct labor =$390,000-$123,000
=$267,000
The answer is either B or D