1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
insens350 [35]
3 years ago
13

The Creamery is analyzing a project with expected sales of3,800 units, give or take 5 percent. The expected variable cost per un

it is $185 and the expected fixed costs are $364,000. Cost estimates are considered accurate within a plus or minus 2 percent range. The depreciation expense is $104,000. The sales price is estimated at $305 per unit, give or take 4 percent. The tax rate is 35 percent. The company is conducting a sensitivity analysis with fixed costs of $360,000. What is the OCF given this analysis? $92,600 $85,350 $98,800 $74,874 $114,300
Business
1 answer:
vaieri [72.5K]3 years ago
4 0

Answer:

operation cash flow ( OCF ) is  $98800

Explanation:

given data

number of units = 3800 units

variable cost = $185 per unit

fixed costs = $364,000

depreciation expense = $104,000

sales price = $305 per unit

tax rate = 35 %

fix cost = $360,000

to find out

what is the OCF given this analysis

solution

we know operation cash flow ( OCF ) is express as

OCF = [ { selling - variable cost ) × no of units } - fixed cost ] × [ tax rate ] + [ deprecation × tax rate ]      ..............................1

put here all these value

OCF = [ { 305 - 185 ) × 3800 } - 360000 ] × [ 35% of income before tax ] + [ 104,000 × 0.35 ]

OCF = 96000 - 0.35×96000 + 36400

OCF = 62400 + 36400

OCF = $98800

You might be interested in
What was the CEO of Tyco accused of doing?
RSB [31]

Answer:

The correct answer is A.) Falsifying records to keep the company stock price from falling.

Explanation:

Kozlowski and CEO Mark Swartz, also of Boca Raton, were convicted in a trial in 2005 on criminal charges for taking unauthorized bonuses, abusing corporate loan programs, falsifying records, and conspiracy. He went to prison in New York where he was in charge of laundry.

Hope This Helps!

4 0
2 years ago
How will hiring you benefit our restaurant
sdas [7]
Im willing to learn and help to be a helpful worker for your restruant.
3 0
3 years ago
Wildhorse Company purchased 300 of the 1000 outstanding shares of Ayayai Company's common stock for $570000 on January 2, 2021.
GarryVolchara [31]

Answer:

$664,000

Explanation:

Correct words: <em>"If Wildhorse Company used the </em><em>Equity </em><em>value method of accounting for its investment in Ayayai Company"</em>

<em />

Ownership percentage = 300/1000

Ownership percentage = 30%

Balance in equity investment at Dec 31, 2021 = $570,000 + Share in earnings ($370,000*30%) - Share in dividends paid out ($85000*20%)

Balance in equity investment at Dec 31, 2021 = $570,000 + $111,000 - $17,000

Balance in equity investment at Dec 31, 2021 = $664,000

So, the Equity Investments balance for Ayayai company on December 31, 2021 is $664,000.

7 0
3 years ago
Norbert works in a beauty salon. he receives a 50% employee discount for salon services. in 2016, he used his discount to buy $1
Crank
The answer is D. $600. In general, the employee discount didn't result in taxable income to the recipient. The amount that may be excluded in relation to services purchased by employees, however, is limited to 20% of the amount normally charged to non-employee customers. As a result, Norbert would be able to exclude an employee discount up to 20% x $2,000 or $400 with the remaining $600 included in gross income.
4 0
3 years ago
Before using them on the grill wooden skewers be
dolphi86 [110]

Answer:

soak them in warm water

Explanation:

answer soak them in water D

3 0
3 years ago
Other questions:
  • Recent financial statements of General Mills, Inc. report net sales of $12,442,000,000. Accounts receivable are $912,000,000 at
    8·1 answer
  • Ethics is a hot topic in business, as well as in Project Management. Using some of the examples presented therein, what kinds of
    8·1 answer
  • You write a short story, but you want to make sure your work is protected before you post it online. What should you do to help
    11·1 answer
  • What is 25 x 5? please help i cant do?
    7·1 answer
  • A popular sports company grants a license to people who use their logo on T-shirts and caps. They charge the company for the rig
    5·2 answers
  • A summary of cash flows for Hurley Travel Service for the year ended March 31, 20Y6 is shown below. Cash receipts: Cash received
    13·1 answer
  • Six years ago, James Corporation sold a $100 million bond issue to expand its facilities. Each debenture has a $1,000 par value,
    9·1 answer
  • Is the microbial community in the intestine a key to understanding obesity? To explore this question, scientists conducted anoth
    15·1 answer
  • Rhett made his annual gambling trip to Uwin Casino. On this trip Rhett won $250 at the slots and $1.200 at poker. Also this year
    5·1 answer
  • The concept of productivity can be reduced to this practical rule: The more you can produce (output) in any period of time (inpu
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!