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marissa [1.9K]
3 years ago
11

"Bennett Co. has a potential new project that is expected to generate annual revenues of $247,700, with variable costs of $137,6

00, and fixed costs of $56,500. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $16,500. The annual depreciation is $22,000 and the tax rate is 40 percent. What is the annual operating cash flow?"
Business
1 answer:
Nostrana [21]3 years ago
5 0

Answer:

$40,960

Explanation:

The computation of the operating cash flow is shown below;

As we know that

Annual Operating Cash Flow is

= EBIT × (1 - Tax Rate) + Depreciation Expenses

Here,

Earnings Before Interest & Tax [EBIT] = Revenues - Variable Cost - Fixed Costs - Depreciation Expenses

= $247,700 - $137,600 - $56,500 - $22,000

= $31,600

Now

Annual Operating Cash Flow = EBIT × (1 - Tax Rate) + Depreciation Expenses

= $31,600 × (1 - 0.40) + $22,000

= [$31,600 × 0.60] + $22,000

= $18,960 + 22,000

= $40,960

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8 0
2 years ago
What is​ positioning? A. A part of a​ company-driven marketing strategy B. Dividing a market into smaller groups of buyers C. De
sergey [27]

Answer:

D. Arranging for a market offering to occupy a​ clear, distinctive, and desirable place relative to competing products in the minds of target consumers

Explanation:

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6 0
3 years ago
Read 2 more answers
Andy Company had a cash balance on May 1 of $ 30,000. At the end of​ May, the cash balance has increased to $ 33,000. During the
PIT_PIT [208]

Answer:

The correct answer is A

Explanation:

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where

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3 years ago
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Arlecino [84]

Answer:

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3 years ago
Advice from most financial advisers states to spend no more than 28% of one's gross monthly income for one's mortgage payment, a
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Answer and Explanation:

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4 0
3 years ago
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