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oksano4ka [1.4K]
3 years ago
5

During the year, the Senbet Discount Tire Company had gross sales of $1.15 million. The firm’s cost of goods sold and selling ex

penses were $534,000 and $224,000, respectively. The firm also had notes payable of $890,000. These notes carried an interest rate of 5 percent. Depreciation was $139,000. The firm’s tax rate was 40 percent. a. What was the firm’s net income? b. What was the firm’s operating cash flow?
Business
1 answer:
oksian1 [2.3K]3 years ago
4 0

Answer:

A: $125,100

B: $392,000

Explanation:

A: The Net Income is calculated after deducting all the expenses i.e. Cost of goods sold, selling expenses, depreciation, interest payable on Notes ($44,500) as well as taxation ($83,400 i.e. 40% of income before taxation of $208,500).

B: Operating cash flow is calculated by adding non-cash items i.e. depreciation of $139,000 to the Income before interest and tax of $253,000

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The attributes of a corporation include:

  • It is state chartered
  • It is a legal entity.
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<h3>What is a corporation?</h3>

A corporation simply means a large company that's acts as a single entity. It's also recognized by law.

A corporation is state chartered, legal entity, and its corporate liability is separate from owners. It's usually a large group of company.

Learn more about corporation on:

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8 0
2 years ago
Suppose an industry has 100 firms, each with a supply curve P = 50 + 10Q . Furthermore, suppose the market demand curve is given
elena-14-01-66 [18.8K]

Answer: See explanation

Explanation:

The industry supply curve will be the supply curve given multiplied by the total number of firms. This will be:

P = 50 + 0.1Q

Check: since Q = 100

P = 50 + 10/100Q

P = 50 + 0.1Q

To get the Equilibrium price and quantity, we've to equate the market demand curve and supply. This will be:

Market demand = P = 200 - 0.9Q

Market Supply = P = 50 + 0.1Q

Therefore,

200 - 0.9Q = 50 + 0.1Q

200 - 50 = 0.1Q + 0.9Q

150 = Q

Equilibrium quantity = 150 units

Since P = 50 + 0.1Q

P = 50 + 0.1(150)

P = 50 + 15

P = 65

Equilibrium price is 65.

The units of output that will be produced by a firm operating in this market with a marginal cost function, MC = 130Q will be 2.

8 0
3 years ago
Danita rescues dogs from her local animal shelter. when danita's income rises by 7 percent, her quantity demanded of dog biscuit
Anna007 [38]

Answer:

The income elasticity of demand for dog biscuits is Option D: positive, and dog biscuits are a normal good.

Explanation:

'Income elasticity of demand' refers to the reaction of the demand in quantity for a good or service to that of change in income.  

'Normal goods' are the goods that are related positively with income whereas 'inferior goods' are those goods which are related negatively with income. As the income increases, there is a rise in demand for the dog biscuits. This means the dog biscuits are normal goods. Income elasticity for demand is positive for Danita as it is because of the rise in income. Hence, Option D is the most appropriate.

6 0
3 years ago
Bullseye, Inc.'s 2008 income statement lists the following income and expenses: EBIT = $707,000, Interest expense = $58,000, and
ololo11 [35]

Answer:

$1.15 per share

Explanation:

The computation of the earning per share is shown below:

Earning per share = Net income ÷ common stock outstanding shares

where,

Net income is

= EBIT - interest expense - taxes

= $707,000 - $58,000 - $224,000

= $425,000

And, the common stock outstanding shares is 370,000

So, the earning per share

= $425,000 ÷ 370,000 shares

= $1.15 per share

8 0
3 years ago
When the selling division in an internal transfer has unsatisfied demand from outside customers for the product that is being tr
torisob [31]

Answer:

C. the market price charged to outside customers, less costs saved by transferring internally.

Explanation:

Divisional manager performance is evaluated separately from one department to another. The Selling department need a minimum price equivalent to price the items fetch in<em> market transaction</em> to raise performance.

However <em>goal congruence </em>has to be met, therefore the price must exclude savings as a result of Internal transfer for the interest of the firm as a whole.

7 0
3 years ago
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