Trình bày nội dung cơ bản về lợi ích,

Houston Pumps recently reported $220,000 of sales, $140,500 of operating costs other than depreciation, and $9,250 of depreciati

GenaCL600 [577]

Answer:

The free cash flow for the firm would be $32,812

Explanation:

In this question we have been given the

total sales = $220,000

operating cost ( without deprecation) = $140,500

depreciation cost = $9250

income tax rate = 35%

capital expenditure(amount invested in fixed asset) = $15,250

investment made in net working capital = $6850

Here our first step should be to calculate the EBIT which is the earnings before interest and tax, for calculating this we will subtract the operating and depreciation cost from the total sales of the company,

EBIT = total sales - operating cost - depreciation

= $220,000 - $140,500 - $9250

= $70,250

After this we will subtract the federal plus income tax from this EBIT to get EBAT,

EBAT = $70,250 - 35% x $70,250

= $70,250 - $24,588 ( the original amount was $24587.5 but we

took approximate)

= $ 45,662

Now we will add back the depreciation in it and subtract the investment made in capital expenditure and net operating working capital cost(OWCC)

FREE CASH FLOW = EBAT + Depreciation - Capital expenditure - OWCC

= $45,662 + $9250 - $15,250 - $ 6850

= $32,812

5 0

4 years ago

Read 2 more answers

If, during the year, total liabilities increased by $95,000 and total stockholders' equity decreased by $75,000, what is the amo

eimsori [14]

Answer:

Total Assets at the end of the year increased by 20.000.

Explanation:

The accounting equation said:

Equity = Total Assets - Total Liabilities

It means that the difference between Assets and Liabilities must be cover with Equity, the movements during the year in Liabilities and Equity must be reflected ni the Total Assets, that is why we have to increase Assets by 20.000 so the equation keep it validity

6 0

3 years ago

George consumes two goods, milk and cookies. He has maximized his utility given his income. Milk costs $2 per gallon and he cons

olga nikolaevna [1]

Answer:

George buys 5 bags of cookies each month

Explanation:

Given

$Milk = \$2$ (per gallon)

$Marginal\ Utility\ (milk) = 4$

$Cookies = \$4$ (per bag)

Required

Determine the number of bags of cookies he buys

First, we need to determine the marginal utility of cookies

To solve this, we make use of the following formula:

$\frac{MU\ of\ Milk}{Cost\ of\ Milk} = \frac{MU\ of\ Cookies}{Cost\ of\ Cookies}$

Substitute values for

MU of Milk = 4

Cost of Milk = 2

Cost of Cookies = 4

This gives:

$\frac{4}{2} = \frac{MU\ of\ Cookies}{2}$

$2 = \frac{MU\ of\ Cookies}{2}$

$MU\ of\ Cookies = 2 * 2$

$MU\ of\ Cookies = 4$

From the given table:

The corresponding bags of cookies for marginal utility of 4 is 5

Hence:

George buys 5 bags

8 0

3 years ago

trapecia [35]

Resource similarity and market commonality are factors that determine the extent to which firms will be in direct competition with each other. A market commonality refers to how many markets where a firm and a competitor are involved together. This will show the importance of the different markets and how they are related and important to one another.

7 0

4 years ago

What percentage of your income after you retire will probably come from social security and from your employer?

S_A_V [24]

What percentage of your income after you retire will probably come from social security and from your employer? All of it. Typically when someone retires, the money they receive comes from their employer if they had some type of retirement plan. Also, from paying social security taxes over the years of working once you retire and reach a certain age, you are able to draw from social security for income.

4 0

3 years ago