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
Delicious77 [7]
2 years ago
11

A company can sell its existing building for $500,000 in order to purchase a larger facility for $750,000. The existing building

was purchased 5 years ago for $450,000 and has a current book value of $350,000. The pre-tax net cash outflow from the purchase of the new building is A. $100,000 B. $250,000 C. $400,000 D. $300,000
Business
1 answer:
aivan3 [116]2 years ago
5 0

Answer:

The pre-tax net cash outflow= $250,000

Explanation:

The pretax net cash flow would be the sum of the cash inflow from the purchase of the existing building and the cost of the larger facility.

Kindly note that the cost of the existing building is  a sunk cost which does not represent cash flow. Similarly, the current is the current book value which represents the unconsumed accounting historical balance depreciation

The net cash flow a= 500,000 - 750,000 = (250,000)

The pre-tax net cash outflow= $250,000

You might be interested in
What is the purpose of a design brief?
Sedbober [7]
A project management document that allows you to identify the scope, scale, and core details of your upcoming design project.
7 0
2 years ago
Management at the Flagstaff Company currently sells its products for $250 per unit and is contemplating a 40% increase in the se
elena-s [515]

Answer:

393 units will need to be sold to breakeven

Explanation:

Break even point is the point where a Company makes neither makes a profit nor a loss.

Step 1 : Calculate new variables

New Sales = $250 x 1.40 = $350

Variable Costs = $250 x 30 % = $75

New Fixed Costs = $120,000 x 90 % = $108,000

Step 2 : Break even (units)

Break even (units) = Fixed Costs ÷ Contribution per unit

                               = $108,000 ÷ ($350 - $75)

                               = 393 units

Thus, 393 units will need to be sold to breakeven

8 0
2 years ago
Lisa is wondering if her company is earning the income they expected to earn at the beginning of this year. She looks at to see
andre [41]

Lisa is wondering if her company is earning the income they expected to earn at the beginning of this year. She looks at to see how the money looks, while remembering that this budget does not show cash outlays. This type of budget is called Expense Budget

<h3>What is Expense Budget?</h3>
  • The Expense Budget displays the revenue and capital expenditures of several ministries and departments and provides estimates for each under "Plan" and "Non-Plan."
  • It provides a thorough study of various expenditure kinds as well as a general explanation for why estimates vary. The Expense Budget also includes the Central Government's requests for grants.
  • Capital assets are crucial expenses for firms since they include cash outlays for production machinery and other equipment that generates revenue.
  • Due to the fact that production equipment is more expensive than standard office supplies or monthly expenses, financing is sometimes required to purchase capital assets.
  • The purchase of capital assets is typically included in expense budgets, and their effects on working capital and future cash flows are quantified. Businesses wouldn't be able to accomplish their operational goals without well managed capital investments.

To know more about Expense Budget with the given link

brainly.com/question/14318672

#SPJ4

3 0
1 year ago
On January 1, 2009, a U.S. firm made an investment in Germany that will generate $5 million annually in depreciation, converted
Afina-wow [57]

Answer:

The expected real value (in terms of January 1, 2009, dollars) of the depreciation charge in year 2013 will be $1,958,815.416.

Explanation:

It is expected that the value of the dollar in the German market will fall at the same rate as that of the real market value of the dollar when we envisage the exchange rate will remain the same. Thus the depreciation of the tax write-off in terms of its real value in dollars will fall at 5% every year from 2009 to 2013.

Therefore, at a tax rate of 50% in Germany, a $2.5 million charge on depreciation on the investment of $5 million will result in 2013.

To calculate the real value of the dollar at an inflation of 5% yearly in 2013

When the tax rate in German is 50%, then charges of depreciation of $5 million will equal4$2.5 million in 2013 dollars. When the dollar's real value of this write-off is declining due to the inflation at 5% annually, the real value in 2013 will be calculated as:

Given: $2,500,000 (P/F , 5%, 5years) ;  0.78356 (factor for calculating the amount to be recieved after  5years)

= $2,500,000 * 0.78356

= $1,958,815.416

8 0
3 years ago
At the very least, Joe Average and Bill Gates are both identically limited by:
shusha [124]

Answer:

The correct answer is option 'B': The 24 hours that comprise a day

Explanation:

For comparison between 2 random variables only those values can be said to be identical that have the same values.

From the given options if we compare Joe and Bill Gates we conclude

1) The 2 person's are not identically limited by wealth as the wealth difference can be large.

2) Similarly they can have a vast difference in their knowledge.

3) Person that has larger wealth and knowledge will naturally have larger influence.

Now since the length of a day is 24 hours and this is a universal truth no matter what the circumstances we conclude that they both are limited by this parameter no matter whatever be the difference between the 2.

4 0
3 years ago
Other questions:
  • Sunland Company had the following two transactions related to its delivery truck. 1. Paid $38 for an oil change. 2. Paid $564 to
    9·1 answer
  • A company marketing team identifies a small group of consumers who fit the profile of the typical customer. The team observes, g
    7·1 answer
  • Which of the following accounts neither increases nor decreases the fund balance of the General Fund during the fiscal year?
    5·1 answer
  • The statement of retained earnings or the statement of stockholders' equity reconciles the net income, dividends paid, and the c
    14·1 answer
  • A senator renounces his past support for protectionism: "The U.S. trade deficit must be reduced, but import quotas only annoy ou
    6·1 answer
  • Juanita is deciding whether to buy a skirt that she wants, as well as where to buy it. Three stores carry the same skirt, but it
    5·1 answer
  • Google Maps is a web mapping service that provides street maps and directions. A Google Maps component can be added to a busines
    13·1 answer
  • Which of the following is a good reason to have a financial reserve that's larger than normal? (Select the best answer.) a. Your
    13·1 answer
  • Seasons Construction is constructing an office building under contract for Cannon Company and uses the percentage-of-completion
    5·1 answer
  • Assume the following: The standard labor rate per hour is $17.00. The standard labor-hours allowed per unit of finished goods is
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!