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
Brilliant_brown [7]
2 years ago
13

Fill in the missing numbers for the following income statement. (Input all amounts as positive values. Do not round intermediate

calculations.)
Sales Costs Depreciation EBIT Taxes (22%) Net income 747,300 582,600 89,300
a. Calculate the OCF. (Do not round intermediate calculations.)
b. What is the depreciation tax shield? (Do not round intermediate calculations.)
a. OCF
b. Depreciation tax shield
Business
1 answer:
Strike441 [17]2 years ago
5 0

Answer: See explanation

Explanation:

Sales = 747300

Less: Costs = 582600

Less: Depreciation = 89300

EBIT = 75400

Less: Taxes at 22% = 22% × 75400 = 16588

Net income = EBIT - Taxes = 75400 - 16588 = 58812

a. Calculate the OCF.

OCF will be calculated as:

= Net income + Depreciation

= 58812 + 89300

= 148,112

b. What is the depreciation tax shield?

Depreciation tax shield will be:

= Depreciation × Tax rate

= 89300 × 22%

= 89300 × 0.22

= 19646

You might be interested in
Hicks Health Clubs, Inc., expects to generate an annual EBIT of $750,000 and needs to obtain financing for $1,200,000 of assets.
Zepler [3.9K]

Answer:

Hicks Health Clubs, Inc. earnings after taxes will change by minus $10,800 if they choose the more aggressive financing plan instead of the more conservative plan.

Explanation:

Note: I experienced a difficulty submitting the explanation here. Kindly find attached the full answer and explanation in the attached Microsoft word document.

Download docx
8 0
3 years ago
At the beginning of 2013, Barcroft Co. estimated that its total annual fixed overhead costs would amount to $25,000. Further, Ba
Varvara68 [4.7K]

Answer:

b. Products were overcosted in 2013

Explanation:

When determining the cost of a product, we consider only the Overheads Applied.

<u>Applied Overheads are calculated as :</u>

Pre-determined Overhead Rate <em>multiplied by </em>Actual Activity

<u>Predetermined Overhead Rate is calculated as follows :</u>

Budgeted Overheads <em>divided by</em> Budgeted Activity

Predetermined Overhead Rate = $25,000/2,000 units

                                                     = $ 12.50 per unit

Applied Overheads = $ 12.50 per unit × 2,200 units

                                 =  $ 27,500

The Overheads Applied are then <em>Compared to</em> Actual Overhead Cost to determine is the Overheads where Over or Under Applied

<u>Therefore our case presents the following:</u>

Applied Overheads ($ 27,500) >Actual Overheads ($25,000)

Therefore, we have an Over-Application situation.

Over-Applied Overheads are $2,500

3 0
3 years ago
Klamath+corporation+has+asset+turnover+of+3.5,+a+profit+margin+of+5.2%,+and+a+current+ratio+of+0.5.+what+is+klamath+corporation'
NARA [144]

Klamath corporation has insufficient information to find ROE.

Return on equity (ROE) is the degree to of an agency's internet earnings are divided by using its shareholders' equity. ROE is a gauge of a corporation's profitability and how successfully it generates one's income. The better the ROE, the higher an employer is at changing its fairness financing into income.

ROE is used while evaluating the monetary performance of agencies within the identical enterprise. it's far a measure of the capability of management to generate earnings from the equity available to it. A go-back of between 15-20% is considered good.

The return on equity is a degree of the profitability of an enterprise with regard to fairness. Because shareholder's equity may be calculated with the aid of taking all belongings and subtracting all liabilities, ROE also can be the idea of a return on belongings minus liabilities.

ROE=Profit margin*Total asset turnover*Equity multiplier

Hence since Equity multiplier data is not given.

Learn more about ROE here: brainly.com/question/26849182

#SPJ4

4 0
1 year ago
Cusic Industries had the following operating results for 2019: sales = $34,621; cost of goods sold = $24,359; depreciation expen
Stolb23 [73]

Answer:

a. $1,132.50

b. $9,884.50

c. $10,586

d.1 $2,725

d.2 - $4,363.50

Explanation:

a. The computation of the net income is shown below:

= Sales - cost of good sold - depreciation expense - interest expense - income tax expense

= $34,621 - $24,359 - $6,027 - $2,275 - 377.50

= $1,132.50

The income tax expense

= ($34,621 - $24,359 - $6,027 - $2,275) × 25%

= $377.50

b. The operating cash flow is shown below:

= EBIT + Depreciation - Income tax expense

where,

EBIT =  Sales - cost of good sold - depreciation expense

       =  $34,621 - $24,359 - $6,027

       =  $4,235

And all other items would remain same

Now put these values to the above formula

So, the value would equal to

= $4,235 + $6,027- $377.50

= $9,884.50

c. Computation of the cash flow from assets for 2019 is shown below:

= Operating cash flow - net capital spending - changes in working capital

where, net capital capital = ending fixed assets - beginning fixed assets + depreciation

= $24,529 -  $19,970 + $6,027

= $10,586

Changes in working capital = (ending balance of current assets - ending balance of  current liabilities) - (beginning balance of current assets - beginning balance of  current liabilities)

= ($8,702 - $4,700) - ($7,075 - $4,010)

= $4,002 - $3,065

= $937

Now put these values to the above formula  

So, the value would equal to

= $9,884.50 - $10,586 - $937

= - $1,638.50

d.1 The computation of the cash flow to creditors is shown below:

= Interest expense - ending balance of long term debt + beginning balance of long term debt

= $2,725 - 0 + 0

= $2,725

d.2 The computation of the cash flow to stockholder is shown below:

= Cash flow from asset - cash flow to creditors

=  - $1,638.50 -  $2,725

= - $4,363.50

6 0
2 years ago
Can someone buy me an iphone... i rlly need it (IT DOESNT MATTER WHICH KIND OF IPHONE !!!!!!!)
jok3333 [9.3K]

Answer:

I cant

Explanation:

IM A KID I WANT ONE TOOOOO!!!!

5 0
2 years ago
Read 2 more answers
Other questions:
  • A corn farm, a coal mine, and a fishing company are all part of the _________ industry. A. Manufacturing B. Service C. Extractiv
    14·2 answers
  • The next dividend payment by Savitz, Inc., will be $2.34 per share. The dividends are anticipated to maintain a growth rate of 4
    7·1 answer
  • For years, Company A has made a line of high-quality power tools. They plan to introduce a revolutionary new tool made entirely
    13·1 answer
  • Explain the differences in working cultures in the U.S. verses Japan. How is leadership affected? Minimum of 100 words
    14·1 answer
  • Suppose a $3 per-unit tax is placed on this good. The tax causes the price paid by buyers to
    9·1 answer
  • Corporate HR for Corner Bookstores knows that sexual harassment in the workplace is a serious issue. In order to provide consist
    7·1 answer
  • Is it good or bad to have lots of layers in a business<br> and why? What can be done?
    14·1 answer
  • OK Dry-Cleaning advertises so effectively that the regular customers of its competitor, Purity Cleaners, patronize OK instead of
    7·1 answer
  • What is a commodity
    15·2 answers
  • If Jane Key invests $18,527.74 now and she will receive $40,000 at the end of 10 years, what annual rate of interest will she be
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!