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Svetradugi [14.3K]
3 years ago
7

During the year, Belyk Paving Co. had sales of $2,425,000. Cost of goods sold, administrative and selling expenses, and deprecia

tion expense were $1,335,000, $635,000, and $450,000, respectively. In addition, the company had an interest expense of $275,000 and a tax rate of 25%. (Ignore any tax loss or carryforward provision and assume interest expense is fully deductible). Calculate the firm's net new long-term debt added during the year.
Business
1 answer:
Vinvika [58]3 years ago
7 0

Answer:

See below

Explanation:

Sales

$2,425,000

Less:

Cost of goods sold

($1,335,000)

Administration and selling expense

($635,000)

Depreciation

($450,000)

EBIT

$5,000

Less:

Interest

($275,000)

No tax

Net income/loss

-$270,000

Operating cash flow = $5,000 + $450,000 - $0 = $500,000

Cash flow from assets = Operating cash flow - Change in networking capital - Net capital spending

= $500,000 - $0 - $0

= $500,000

Cash flow to shareholders = Dividends - New equity

= $0 - $0

= $0

Cash flow to creditors = Cash flow from assets - Cash flow to shareholders

= $500,000 - $0

= $500,000

Therefore, new long term debt added during the year is;

= Interest - Cash flow to creditors

= $275,000 - $500,000

= $225,000

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Answer:

According to the one percent rule, you should set aside at least one percent of your home's value every year for home maintenance. For a $360,000 house, this works out to $3,600 per year, or $300 per month.

6 0
3 years ago
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Which of the following statements is false?
serious [3.7K]

Answer:

ERP systems use the same data as functional information systems.

Explanation:

At its most fundamental level, ERP software integrates these different capacities into one complete framework to streamline procedures and data over the whole organization. The focal element of all ERP frameworks is a shared database that supports multiple capacities utilized by various business units.

3 0
3 years ago
On January 2, 2013, Gant Co. purchased a franchise with a useful life of five years for $60,000 and an annual fee of 1% of franc
inysia [295]

Answer:

$48,000

Explanation:

The computation of the amount that should be reported as the intangible asset franchise is shown below

= Purchase value of franchise - amortization per year

= $60,000 - ($60,000 ÷ 5 years)

= $60,000 - $12,000

= $48,000

hence, the  amount that should be reported as the intangible asset franchise is $48,000

6 0
3 years ago
The value of what you owe minus what you owe is called
aliina [53]
Hey there!

I think you meant to type "value of what you <em>own</em> minus what you owe". Let me know if this assumption isn't correct, though I don't know what the value of what you owe is besides... ya know, what you owe. 

The value of what you own is called you assets. This can include anything of value that you own, particularly your pricier possessions. Think of a vintage family heirloom or a highly–priced article of clothing. Assets, though, includes the value <em>everything</em> that you own that you could possibly put a price tag on if you were certain someone would buy it. 

What you owe is called your liability. This is basically any debt that you owe anyone, whether it be your buddy who footed your lunch bill the other day when you didn't have enough cash or a student loan you used to pay for college. 

Your assets minus your liability is called your net worth. This is basically what you are worth in total. This makes sense, since any debt you owe will be taken out of the amount that you are worth or any money that you have.

Net worth will be your answer. 

Hope this helped you out! :-)
4 0
3 years ago
What is the yield to maturity of a one-year zero-coupon bond with a $10,000 face value and a price of $9400
svp [43]

Answer:

6.383%

Explanation:

Calculation for the What is the yield to maturity

Using this formula

YTM=n√Face value/Bond price -1

Where,

n=one-year

Face value=10,000

Bond price=9,400

Let plug in the formula

YTM=1√10,000/9,400−1

YTM=1.06383-1

YTM=0.06383*100

YTM=6.383%

Therefore the yield to maturity will be 6.383%

3 0
3 years ago
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