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
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

You might be interested in
JT Inc. produces gourmet frozen dinners for the airline industry. JT has fixed costs of $200,000 and variable costs of $8 per fr
nadezda [96]

Answer:

The operating profit for this year amounts to $ 550,000

Explanation:

Operating Profit is computed below as:

Operating Profit = Revenue - Expense (Fixed Cost + Variable Cost)

                           = $1,950,000 - ($200,000 + $1,200,000)

                           = $1,950,000 - $1,400,000

                          = $550,000

Revenue = Number of frozen dinners × Selling Price

               = 150,000 × $13

               = $1,950,000

Variable Cost = Number of frozen dinners × Cost per frozen dinner

                       = 150,000 ×  $8

                       = $1,200,000

6 0
3 years ago
For which expense do state governments provide financial help to their local governments?
jeka94

expensive...............................

7 0
3 years ago
Read 2 more answers
Cedric has been following a detailed review schedule in preparation for his test. He feels confident that he knows the material,
rewona [7]

Answer: Noting down of ideas

Explanation: Cedric could note down the ideas and points he remembers on the back of his test booklet. He should first read the question and  make short notes of every point he remembers regarding that question.

This strategy will help Cedric to answer the questions while doing the final writing in answer sheet. By doing this he can also improve his speed with accuracy while answering.

5 0
3 years ago
The CEO and his top managers have asked themselves two important​ questions: a. do customers value what the company is​ providin
Doss [256]

Answer:

The correct answer is (D) business model

good luck

3 0
3 years ago
Hernandez Company has 560,000 shares of $10 par value common stock outstanding. During the year, Hernandez declared a 10% stock
denis-greek [22]

Answer:

RE decrease: 1,960,000

Explanation:

Retained earnings will decrease for the total amount of the dividends.

<u>stocks dividends</u>

560,000 shares

10% stock dividends: 560,000 x 10% = 56,000 shares

56,000 x $30 = 1,680,000 stock dividends

<u>cash dividends:</u>

560,000 x 0.50 per share = 280,000 cash dividends

Total dividends: 1,680,000 + 280,000 = 1,960,000

that will be the RE decrease

3 0
3 years ago
Other questions:
  • Select the answer that most accurately describes the effects of NAFTA.
    11·2 answers
  • Jasper Company has sales on account and for cash. Specifically, 61% of its sales are on account and 39% are for cash. Credit sal
    6·1 answer
  • Sandra williams is single. she itemized deductions in 2014. she plans to itemize for 2015. in order for her plan to itemize dedu
    10·1 answer
  • Which of these fees is paid at the closing when a home purchase is finalized?
    13·1 answer
  • n an oligopoly market, collusion between firms usually leads to higher profits than does noncooperative behavior. Howeve r, form
    5·2 answers
  • If fixed costs are $1,200,000, the unit selling price is $240, and the unit variable costs are $110, what is the amount of sales
    11·1 answer
  • Toby works in an office where employees scan a large number of documents everyday. His manager has asked him to purchase a new s
    6·2 answers
  • Chance Company had two operating divisions, one manufacturing farm equipment and the other office supplies. Both divisions are c
    6·1 answer
  • Some people are in favor of reducing Federal taxes to increase consumer spending others are against it. Two person are selected
    7·1 answer
  • What is the expected return on a portfolio that has $100 invested in stock 1 with an expected return of 18.0% and $45 invested i
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!