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cricket20 [7]
3 years ago
8

Precise Machinery is analyzing a proposed project. The company expects to sell 7,500 units, ±10 percent. The expected variable c

ost per unit is $314 and the expected fixed costs are $647,000. Cost estimates are considered accurate within a ±4 percent range. The depreciation expense is $187,000. The sales price is estimated at $849 per unit, give or take 2 percent. The tax rate is 21 percent. The company is conducting a sensitivity analysis on the sales price using a sales price estimate of $850. What is the operating cash flow based on this analysis?'
Business
1 answer:
statuscvo [17]3 years ago
4 0

Answer:

$2,703,940

Explanation:

Calculation for the operating cash flow based on this analysis

Particulars Amount

Sales amount 6,375,000

(850*7,500)

Less vaiable cost 2,355,000

(314*7,500)

Less Fixed cost 647,000

Less Depreciation 187,000

PBT 3,186,000

Tax 21% 669,060

(21%*3,186,000)

PAT 2,516,940

(3,186,000-669,060)

Add: Depreciation 187,000

Operating cash flow $2,703,940

(2,516,940+187,000)

Therefore the operating cash flow based on this analysis will be $2,703,940

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Answer:

Chapter 7 bankruptcy

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List three pieces of information listed in a credit card agreement that you believe are important to review before signing up fo
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Explanation:

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3 years ago
Read 2 more answers
During the current year, the Town of Salo Alto recorded the following transactions related to its property taxes: Levied propert
Annette [7]

Question Completion:

Prepare the journal entries.

Answer:

Town of Salo Alto

Journal Entries:

Debit Property Taxes Receivable $3,300,000

Credit Unearned Property Taxes $3,300,000

To record the levying of property taxes.

Debit Uncollectible Expense $66,000

Credit Allowance for Uncollectible Property Taxes $66,000

To record the 2% allowance for uncollectible taxes.

Debit Cash $2,987,500

Credit Property Taxes Receivable $2,987,500

To record the collection of current property taxes.

Debit Cash $28,900

Credit Deferred Inflows of Resources $26,500

Credit Interest and Penalties $2,400

To record the collection of delinquent taxes with interest and penalties.

Debit Penalties and Interest Receivable $3,750

Credit Interest and Penalties $3,100

Credit Allowance for uncollectible $650

To record penalties and interest imposed.

Debit Deferred Inflows of Resources $312,500

Credit Property Taxes Receivable $312,500

To re-classify uncollected taxes as delinquent.

Explanation:

The ASC 606, as applicable to GASB, specifies when property tax revenues should be recognized in government-wide financial statements.  Governmental revenue, e.g. property tax revenue, should be considered as revenue in the current period if it can be collected within that period or sixty days after the current period.  If it cannot be so collected, it needs to be re-classified as delinquent.

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Jones signs a three-year contract to construct a new office building for Smith. The contract price is $3 million and estimated c
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additional costs for year 3 over the estimated costs represent an additional loss}

7 0
3 years ago
56. Anne LLC purchased computer equipment (5-year property) on August 29 with a basis of $30,000 and used the half-year conventi
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Answer:

B. $1,728

Explanation:

Data given in the question

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= $30,000 × 11.52% × 0.5

= $1,728      

Refer to the MACRS table to find out the depreciation rate

3 0
3 years ago
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