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
zysi [14]
2 years ago
6

During fiscal year 2019, Magic Kingdom had sales of $2 million. Its cost of goods sold, selling and general administrative expen

ses, and depreciation were $1.2 million, $.5 million and $.9 million, respectively. Its 7% semiannual coupon bonds will mature in 10 years, and there is no other debt. The tax rate is 21%, and tax losses cannot be carried forward or back. What is the operating cash flow for Magic Kingdom in fiscal year 2019?
Business
1 answer:
guajiro [1.7K]2 years ago
7 0

Answer:

$300,000  

Explanation:

The computation of the operating cash flow is shown below:

But before that EBIT should be determined

Sales $ 2,000,000.00  

Less : Cost of Goods Sold $1,200,000.00  

Gross Profit    $800,000.00  

Less:  selling and general administrative expenses $500,000.00  

Less: Depreciation expense $900,000.00  

EBIT i.e. Operating Income/(Loss) $(600,000.00)  

Tax at 21% $(126,000.00)

Since it is negative so the tax loss would not be determined  

Now Operating Cash flow

= EBIT × (1 -T) + Depreciation expense - Chane in Working Capital  

= EBIT + Depreciation expense

= -$600,000 + $900,000

= $300,000  

You might be interested in
A store offers packing and mailing services to customers. The cost of shipping a box is a combination of a flat packing fee of $
strojnjashka [21]

Answer:

equation will be 2x+5

Explanation:

We have given the cost of shipping box = $5

Flat packing fee = $5

As given, the cost of shipping a box is based on its weight in pounds so it is variable

And a flat rate of $5 for packing. This means $5 is common for each parcel that will be sent. Only the weight will vary.

So the equation will be 2x+5

4 0
3 years ago
Read 2 more answers
Explain how international trade allows a country to move beyond its production possibilities frontier.
Digiron [165]

Answer:

Increased international trade, especially exports, increases production efficiency which allows a country to move beyond its production possibilities frontier.

Explanation:

In business terms, a production possibilities frontier is a curve that shows how much two products in an economy are able to produce when the two products are competing over the same limited resources. The curve can also be used to determine the quantity of a product that can be produced in an economy when the economy is working at its maximum efficiency. There are many factors that affect the production possibilities frontier, namely;

International trade:

Trade is the exchange of goods and services for commercial interests. International trade involves trade between countries. Most countries trade in the form of exports and imports. Exports are goods and services taken to foreign countries while imports are goods and services received from other countries. When there are greater exports than imports, it means that more of your goods and services are on demand by other countries thus makes your currency stronger. An increased demand for domestic goods and services increases production efficiency which allows a country to move beyond its production possibilities frontier.

6 0
3 years ago
What will be the depreciation, via the straight line method, if the cost of a plant is $43,250, estimated disposal value is $3,2
Alinara [238K]

Answer:

depreciation expense per year 8,000

Explanation:

<u>The first step,</u> is to calculate the depreciable amount for the asset:

cost - salvage value = amount subject to depreciation

43,250 - 3,250 = 40,000 = depreciable amount

<u>Then,</u> we calculate the depreciation per year:

depreciable amount/ useful life = depreciation per year

40,000/5 = 8,000

In some particular cases, the first year the asset enter the accounting it could be for a period of half the accounting period, so only half-year depreciation is appliedon the first year.

7 0
3 years ago
Natalie is using Monster and CareerBuilder in her job search. These sites are examples of ________.
lorasvet [3.4K]

Answer:

General purpose Job boards

Explanation:

A job board can be straightforwardly defines as a website where employers advertise job openings for job seekers

A general purpose job board as seen in the question can be defined as a website that offers job recruitment services in its entirety.

This means that both employees and employers use the site to search for and advertise job openings to job seekers respectively. Popular job boards include Glassdoor, Linkedin, etc.

Cheers.

3 0
3 years ago
g Perfection purchased a 25% stake in Satisfactory for $486,000 on Jan 2, 2021. On Jan 1, 2021, Satisfactory had a book value of
Brums [2.3K]

Answer:

The value that Perfection records in it's books on Jan 2, 2021 related to its investment in Satisfactory is:

$486,000.

Explanation:

a) Data and Calculations:

Net asset value of Satisfactory = $1,944,000 on acquisition date

Stake purchased by Perfection = 25%

25% of the net asset value of Satisfactory = $486,000 ($1,944,000 * 25%)

b) There is no goodwill arising from the investment in Satisfactory.  The equity method will be used to account for the investment in the Satisfactory.  The Equity Method involves recording the investment in an associated company like Satisfactory when Perfection's ownership interest in Satisfactory is valued at 20–50% of the net assets.

5 0
2 years ago
Other questions:
  • A business renders services to a client and issues a sales invoice. The amount will be collected from the customer at a later ti
    12·1 answer
  • Bond Calculations: 1) Avon Products Note 06.5% Coupon: 6.500% Maturity 5 years Rating: Moodys: BAA3 Price: $108.093 Calculate: Y
    9·1 answer
  • The marginal revenue product of capital is _______.
    10·1 answer
  • After a customer buys a computer or receives service from Top Computers and Service, a service representative contacts each cust
    7·1 answer
  • The yield to maturity on a bond is:
    6·1 answer
  • According to David Ricardo, increases in government spending unaccompanied by tax increases will not necessarily increase aggreg
    15·1 answer
  • Calculate the present values for the perpetuity: (1) Annual amount $20000, discount rate 8% (2) Annual amount $10000, discount r
    6·1 answer
  • Which of the following arguments are inductive, and which are deductive? Just answer "inductive" or "deductive".
    5·1 answer
  • I think we should raise taxes for the wealthy so we can increase the public services.
    10·2 answers
  • At Mighty-Tuf Industrial Products Group, 30 percent of its employees are neither a citizen of the parent company nation nor the
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!