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Marina86 [1]
3 years ago
8

You are considering an investment in Crew Cut, Inc. and want to evaluate the firm's free cash flow. From the income statement, y

ou see that Crew Cut earned an EBIT of $23.18 million, paid taxes of $3.82 million, and its depreciation expense was $7.82 million. Crew Cut's gross fixed assets increased by $10.18 million from 2017 to 2018. The firm's current assets increased by $6.18 million and spontaneous current liabilities increased by $3.82 million. What is Crew Cut's operating cash flow, investment in operating capital and free cash flow for 2018, respectively in millions
Business
1 answer:
forsale [732]3 years ago
7 0

Answer:

See below

Explanation:

•Crew Cut's operating cash flow was;

Operating cash flow = EBIT - Taxes + Depreciation

= $23.18 million - $3.82 million + $7.82 million

= $27.18 million

• Investment in operating capital for 2018

Investment in operating capital = Change in gross fixed assets + Change in net working capital

= $10.18 million + ($6.18 million - $3.82 million)

= $10.18 million + $2.36 million

= $12.54 million

• Free cash flow for 2018

Free cash flow = Operating cash flow - Investment in operating capital

= $27.18 million - $12.54 million

= $14.64 million

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Answer:

The correct answer is B

Explanation:

Responsive is the measure of the quality as well as speed at which the company provides the customer service and the communication.

For example, if the customer who drop the mail enquiring about particular information regarding a service or a product. And, the response for the enquiry could be traced out from how quick the company could reply or responsive to the mail along with the desired information.

So, in this case, the manager did not grasp the responsive in order to make his target market.

7 0
3 years ago
Ken, a real estate agent, assures Lily that a certain parcel of commercial property fronts on the most highly trafficked street
crimeas [40]

Options :

a. ​mistake.

b. ​opinion.

c. ​an adhesion contract.

d. ​fraud.

Answer: Fraud

Explanation: From the scenario described above, it could be inferred that Ken, the real estate agent used trickery to lure Lily into purchasing the property. Hence, Lily could be said to have been defrauded by Ken who used what Lily needed to trick her into making the purchase because the main specification, that is high traffic, which Ken used to lure Lily was actually false. Fraud remains a grave offence as it could only be carried out by lying, issuing false statement, blackmail, impersonation and other grave offences.

5 0
3 years ago
Fund P has one-third of its funds invested in each of the three stocks. The risk-free rate is 4.5%, and the market is in equilib
seraphim [82]

The market risk premium of Fund P will be 5.5%.

<h3>How to calculate the market risk premium?</h3>

It should be noted that as per CAPM, the return in stock will be:

= Risk free rate + Beta × Market risk premium

8.90% = 4.5% + 0.8 × Market risk premium.

Market risk premium = 5.5%

In conclusion, the market risk premium of Fund P will be 5.5%.

Learn more about market risk premium on:

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3 0
2 years ago
Strieby Corp. operates a business with three separate entities as subsidiaries that operate as a unitary business: Matty Corp.,
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Answer:

Those that will be required to file a California return are; Matty,

Strieby, Kennedy and Jackson .

Explanation:

Those that will be required to file a California return are; Matty, Strieby, Kennedy and Jackson. From the question we are informed that all of the entities involved are operating unitary Business, which is the same concept followed by California. And we know that

Unitary business can be regarded as group of persons which are related and having interdependent business activities/operations. So in this case, single California return will be filled by the entities involved.

3 0
3 years ago
Indicate whether it would appear on the statement of cash flows as a(n)? operating activity, investing activity, or financing ac
nikitadnepr [17]

Indicate whether it would appear on the statement of cash flows as operating activities.

There are three types of cash flow: operating cash flow, investment cash flow, and financial cash flow. Operating cash flow is generated from the company's normal operating activities. This includes cash proceeds from sales, cash outlays on goods sold (COGS), and other operating expenses such as overheads and salaries.

Investing cash flows include amounts spent to purchase securities intended to be held as investments, such as securities. B. Stocks or bonds of other companies or the Treasury. Inflows are generated by interest and dividends paid on these holdings.

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7 0
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