Is considered to be the shortest path to failure in business.

KatRina [158]

1. Credit account and Store accounts

3 0

3 years ago

In each of the following pairs of bonds, select the bond that has the highest duration or effective duration: a. Bond A is a 6%

Pavlova-9 [17]

Answer:

Please see attachment .

Explanation:

Please see attachment .

4 0

3 years ago

a proposed new project has projected sales of $222000, costs of $96500, and deperciation of $26100. The tax rate is 24 percent.C

Ray Of Light [21]

The question is incomplete. Here is the complete question

A proposed new project has projected sales of $222000, costs of $96500, and deperciation of $26100. The tax rate is 24 percent.Calculate operating cash flow using the four different approaches.

(Do not round intermediate calculations.)

A. EBIT+Depreciation-Taxes

B. Top-Down

C. Tax-Shield

D.Bottom-Up

Answer:

(A) $101,644

(B) $101,644

(C) $101,644

(D) $101,644

Explanation:

A proposed new project has a sales of $222,000

The cost is $96,500

The depreciation is $26,100

The tax rate is 24%

= 24/100

= 0.24

(A) Using the EBIT + Depreciation - Taxes approach, the operating cash flow can be calculated as follows

EBIT= Sales-Cost-Depreciation

= $222,000-$96,500-$26,100

= $99,400

Taxes= EBIT × tax rate

= $99,400 × 0.24

= $23,856

EBIT + Depreciation - Taxes

$99,400+$26,100-$23,856

= $125,500-$23,856

= $101,644

(B) Using the Top down approach, the operating Cash flow can be calculated as follows

Top down= Sales-Cost-Taxes

= $222,000-$96,500-$23,856

= $101,644

(C) Using the tax shield approach, the operating cash flow can be calculated as follows

Tax shield= (sales-cost)×(1-Tax rate)+(depreciation×tax rate)

= ($222,000-$96,500) × (1-0.24) + ($26,100×0.24)

= 125,500×0.76+6,264

= $101,644

(D) Using the bottom up approach, the operating cash flow can be calculated as follows

Bottom up = NI + depreciation

NI=EBIT-Taxes

= $99,400-$23,856

= $75,544

Bottom up=$75,544 + $26,100

= $101,644

3 0

3 years ago

When a firm uses retained profits to invest in more energy efficient equipment, an economist would calculate the _______________

Blababa [14]

Answer:

opportunity cost

Explanation:

When a firm uses retained profits to invest in more energy efficient equipment, an economist would calculate the opportunity cost of investing in physical capital.

6 0

3 years ago

Help ASAP Please! Accounting class! Lorge Corporation has collected the following information after its first year of sales. Sal

frez [133]

Answer:

Lorge Corporation

Contribution margin for the current year

= $315,000 ($3 per unit)

Contribution margin for the proposed year = $346,500

Fixed costs for the current year = $473,100

Break-even units = 157,700 units

Break-even sales dollars = $2,365,500

Explanation:

a) Data and Calculations:

Sales revenue = $1,575,000

Sales units = 105,000 units

Sales price per unit = $15 ($1,575,000/105,000)

Total Variable Fixed

Selling expenses = $250,000 $100,000 (40%) $150,000 (60%)

Direct materials $606,100 606,100

Direct labor $250,000 250,000

Administrative expenses $270,000 54,000 (20%) 216,000 (80%)

Manufacturing overhead $357,000 249,900 (70%) 107,100 (30%)

Total costs $1,733,100 $1,260,000 $473,100

Contribution margin for the current year = $315,000 ($1,575,000 - $1,260,000)

= $3 per unit

Unit sales = 115,500 (105,000 * 1.1)

Sales revenue = $1,732,500

Variable costs 1,386,000 ($15 - $3)

Contribution margin for the proposed year = $346,500 ($3 * 115,500)

Fixed costs for the current year = $473,100

Break-even units = $473,100/$3 = 157,700 units

Break-even sales dollars = $473,100/0.2 = $2,365,500

6 0

3 years ago