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Lera25 [3.4K]
3 years ago
9

Watson Oil recently reported (in millions) $8,250 of sales, $5,750 of operating costs. The company had $3,200 of outstanding bon

ds that carry a 5% interest rate, and its federal-plus-state income tax rate was 35%. In order to sustain its operations and thus generate future sales and cash flows, the firm was required to make $600 of capital expenditures on operating long-term assets and to invest $300 in net operating working capital. By how much did the firm's net income exceed its free cash flow
Business
1 answer:
Serga [27]3 years ago
3 0

Answer:

$796

Explanation:

The computation of the excess amount is shown below:

As we know that

Free cash flows = Net Income + Depreciation + Interest (1-tax) - Capital expenditures  +- changes in Working capital

Now the difference could be determined by the following formula

-Depreciation - interest (1-tax) + capital expenditure + changes in Working capital

= -$650 - 0.05 × $3,200 × (1 - 0.35) + $1,250 + $300

= $796

 

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Hale Company sells merchandise on account for $1,000 to Long Company with credit terms of 2/10, n/30. Long Company returns $200
Vladimir79 [104]

Answer:

Amount of Check = $784

so correct option is a. $784

Explanation:

given data

Merchandise on account = $1,000

Long Company returns  = $200

credit terms =  2/10

n/30

to find out

What is the amount of the check

solution

we know here that Total Merchandise will be

Total Merchandise = Merchandise on account  - returns   ....................1

Total Merchandise = $1000 - $200

Total Merchandise = $800

and

discount will be here

Discount = 0.02  ×  800

returns = $16

so

Amount of Check will be as

Amount of Check = Total Merchandise - Discount   ...................2

put here value

Amount of Check = Total Merchandise - Discount  

Amount of Check = $800 - $16

Amount of Check = $784

so correct option is a. $784

7 0
3 years ago
Explain the different levels of specialization.​
Dimas [21]
There are two types of specialisation:

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4 0
3 years ago
According to liquidity preference theory, if the quantity of money demanded is greater than the quantity supplied, then the inte
melisa1 [442]

Answer:

The correct answer is option A.

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When the demand for money is more than supply, it means there is excessive demand. This excess demand will lead to increase in the interest level. At higher interest, the quantity of money demanded will fall.

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