SwiftyCompany is considering two capital investment proposals. Estimates regarding each project are provided below:

l a fixed asset for $72,376 when its book value is $43,070. If your company's marginal tax rate is 25 percent, what will be the

tiny-mole [99]

Answer:

Cash flow= $64,847

Explanation:

Giving the following information:

Sellin price= $72,376

Tax rate= 25%

Book value= $43,070

First, we need to calculate the gain from the sale and the tax:

Gain= 72,376 - 43,070= $29,036

Tax= gain*tax rate

Tax= 29,036*0.25= $7,259

Now, we can calculate the after-tax cash flow:

Gain= 29,036

Tax= (7,259)

Book value= 43,070

Cash flow= $64,847

4 0

3 years ago

The steeper an isoquant is (labor measured on the horizontal axis): A. the greater is the level of output. B. the greater is t

Volgvan

Answer:

C. the greater is the marginal productivity of labor relative to that of capital

Explanation:

An isoquant is a curve that shows all the combinations of inputs that yield the same level of output.

When adding one factor holding the other factor constant inevitably, leads to lower output levels, the isoquant must become steeper, as more capital is added instead of labour, and flatter when labour is added instead of capital. Returns to capital even decline.

8 0

3 years ago

Read 2 more answers

Nowadays, many of the huge factories and industries ___________to function if there was no adequate electric power. A. Were unab

nalin [4]

Option B. Nowadays, many of the huge factories and industries Would be unable to function if there was no adequate electric power.

<h3>What is electric power?</h3>

The rate of electrical energy transmission over an electric circuit per unit of time is measured as electric power in physics. P stands for power, which is denoted and measured using the SI unit of power, the watt, or one joule per second. Electric batteries and electric generators are frequently used to produce and supply electricity.

The speed at which energy is converted into an electrical circuit or used to produce work is known as electric power. It is a way to quantify how much energy is consumed over a certain period of time.

Read more on electricity here: brainly.com/question/24786034

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4 0

1 year ago

The net income reported on the income statement for the current year was $210,000. Depreciation recorded on equipment and a buil

Lana71 [14]

Answer:

Cash flows from operating activities section

Amount in $

Net income 210,000.00

Depreciation 62,500.00

Change in Accounts Receivable -2,400.00

Change in Inventories 13,500.00

Change in Prepaid Expenses -600.00

Change in Accounts Payable 3,800.00

Change in Salaries Payable -750.00

Cash flows from operating activities  286,050.00

Explanation:

The operating activities includes net income, depreciation and changes in current assets and current liabilities. The depreciation as a non-cash item is added back in the cash flows statement.

An increase in current assets represents an outflow of cash hence the negative value and vice versa. The increase in current liabilities represents an inflow of cash hence it is positive and vice versa. Below are the changes.

Amount in $ Amount in $ D ifference

Change in Accounts Receivable 71,000 73,400 (2,400.00)

Change in Inventories 140,000 126,500 13,500.00

Change in Prepaid Expenses 7,800 8,400 (600.00)

Change in Accounts Payable 62,600 66,400 3,800.00

Change in Salaries Payable 9,000 8,250 (750.00)

7 0

3 years ago

The notes receivable account of a business should include both the notes that haven't matured and the dishonored notes.

den301095 [7]

This statement is false. The notes receivable account should only include those notes which can still be collected. Notes that have not matured yet is still included in the notes receivable account because there is still the probability of collection. Dishonored notes should not anymore be included because there is no more probability of collection.

6 0

3 years ago