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3 years ago

Fill in the missing numbers in the following income statement:

Business

1 answer:

kakasveta [241]3 years ago

3 0

Answer:

See below

Explanation:

EBIT = Sales - Cost - Depreciation

= $645,000 - $346,500 - $97,200

= $201,300

Taxes = EBIT × 35%

= $201,300 × 35%

= $70,455

Net income = EBIT - Taxes

= $201,300 - $70,455

= $130,845

1. OCF

= Net income + Depreciation

= $130,845 + $97,200

= $228,045

2. Depreciation tax shield

= Depreciation × Tax rate

=$97,200 × 35%

= $34,020

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Given:

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Bottling department occupies = 17,480 square feet.

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Answer:

B). $12

Explanation:

As per the given data, the AFC(Average Fixed Cost) for employing 25 factors of labor and 16 factors of capital would be $12.

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