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LiRa [457]
3 years ago
15

During the year, the Senbet Discount Tire Company had gross sales of $1.14 million. The firm’s cost of goods sold and selling ex

penses were $533,000 and $223,000, respectively. The firm also had notes payable of $880,000. These notes carried an interest rate of 7 percent. Depreciation was $138,000. The firm’s tax rate was 35 percent.
What was the firm’s operating cash flow? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Round your answer to the nearest whole number, e.g., 32.)
Business
1 answer:
Yuri [45]3 years ago
8 0

Answer:

$319,460

Explanation:

Calculation for the firm’s operating cash flow

First step is to calculate EBIT and Taxes

Sales $1,140,000

Less Cost of goods sold 533,000

Less Selling costs 223,000

Less Depreciation 138,000

EBIT $246,000

Interest 61,600

(7%*$880,000)

Taxable income $184,400

(246,000-61,600)

TAXES 64,540

(35%*$184,400)

Now let calculate the firm’s operating cash flow using this formula

Operating cash flow = EBIT + Depreciation - Taxes

Let plug in the formula

Operating cash flow = $246,000 + $138,000 - $64,540

Operating cash flow = $319,460

Therefore the firm’s operating cash flow is $319,460

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6 0
1 year ago
Congress adopted a law to provide insurance to protect wheat farmers. The agency in charge of the program adopted regulations to
Zinaida [17]

Answer:

She is bound by the regulations.

Explanation:

It is Mary's duty to know if the insurance regulations published in the Federal Register have been adopted by Congress.  The purpose of using the Federal Register is to inform US citizens of all pending legislations.  The publication in the Federal Register is, therefore, considered as a sufficient legal requirement for compliance with public notices.

7 0
3 years ago
An analysis and aging of the accounts receivable of Hugh Company at December 31 revealed the following data: Accounts Receivable
Hitman42 [59]

Answer:

$844,000

Explanation:

Given that,

Accounts Receivable = $900,000

Credit balance of Allowance for Doubtful Accounts per books before adjustment = $50,000

Expected amount of uncollectible = $56,000

Bad debt expense at the end of the period is determined by subtracting the credit balance of allowance for doubtful accounts from the expected amount of uncollectible.

Bad debt expense:

= Expected amount of uncollectible - Credit balance

= $56,000 - $50,000

= $6,000

At the end of the period, the allowance for doubtful accounts has a balance of $56,000 that are to be uncollectible.

The cash realizable value of the accounts receivable at December 31, after adjustment, is determined by simply subtracting the Allowance for doubtful accounts  from the accounts receivable. It is calculated as follows:

= Accounts Receivable - Allowance for doubtful accounts

= $900,000 - $56,000

= $844,000

4 0
3 years ago
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LUCKY_DIMON [66]

Answer:

D) All of the above

  • a. So they won't take research results at face value
  • b. So they will know how to ask the right questions about the research
  • c. So they can determine the validity of the results

Explanation:

Marketing research is defined as the process of collecting, analyzing and interpreting information that can be used to develop, implement and monitor a company's marketing plan.

Imagine if a manager received a study, he/she cannot take for granted that the study was well developed, carried out and the results were interpreted correctly. The manager must know how to evaluate if the parameters of a research are correct or if the results are valid or not.

4 0
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