Recording transactions and events is known as

A project has an initial cost of $6,900. The cash inflows are $850, $2,400, $3,100, and $4,100 over the next four years, respect

monitta

Answer:

Thus, payback period is = 3 years and 1.61 months

Explanation:

Payback period is the time it will take the project cash flows to recover the initial investment. The payback period for the project in question will be,

Year Cash flow Remaining Amount

1 850 (6900 - 850) = 6050

2 2400 (6050 - 2400) = 3650

3 3100 (3650 - 3100) = 550

As the year 4 cash flow is 4100, we know that the amount will be recovered in year 4. However, we will calculate the exact period or months in year 4 that it will take to recover total initial investment assuming that cashflow occurs at constant rate through out the year.

Time = 550 / 4100 * 12 = 1.61 months

Thus, payback period is = 3 years and 1.61 months

4 0

3 years ago

The following costs result from the production and sale of 1,000 drum sets manufactured by Tight Drums Company for the year ende

Ierofanga [76]

Answer:

$0.72

Explanation:

total direct materials = $125,000

total variable selling costs = $15,000

total variable costs = $140,000

variable cost per unit = $140,000 / 1,000 units = $140 per unit

contribution margin ratio = (sales price - variable cost) / sales price = ($500 - $140) / $500 = 72%

this means that per dollar of sales, $0.72 are left to cover fixed costs and contribute to operating income

8 0

3 years ago

a proposed new project has projected sales of $222000, costs of $96500, and deperciation of $26100. The tax rate is 24 percent.C

Ray Of Light [21]

The question is incomplete. Here is the complete question

A proposed new project has projected sales of $222000, costs of $96500, and deperciation of $26100. The tax rate is 24 percent.Calculate operating cash flow using the four different approaches.

(Do not round intermediate calculations.)

A. EBIT+Depreciation-Taxes

B. Top-Down

C. Tax-Shield

D.Bottom-Up

Answer:

(A) $101,644

(B) $101,644

(C) $101,644

(D) $101,644

Explanation:

A proposed new project has a sales of $222,000

The cost is $96,500

The depreciation is $26,100

The tax rate is 24%

= 24/100

= 0.24

(A) Using the EBIT + Depreciation - Taxes approach, the operating cash flow can be calculated as follows

EBIT= Sales-Cost-Depreciation

= $222,000-$96,500-$26,100

= $99,400

Taxes= EBIT × tax rate

= $99,400 × 0.24

= $23,856

EBIT + Depreciation - Taxes

$99,400+$26,100-$23,856

= $125,500-$23,856

= $101,644

(B) Using the Top down approach, the operating Cash flow can be calculated as follows

Top down= Sales-Cost-Taxes

= $222,000-$96,500-$23,856

= $101,644

(C) Using the tax shield approach, the operating cash flow can be calculated as follows

Tax shield= (sales-cost)×(1-Tax rate)+(depreciation×tax rate)

= ($222,000-$96,500) × (1-0.24) + ($26,100×0.24)

= 125,500×0.76+6,264

= $101,644

(D) Using the bottom up approach, the operating cash flow can be calculated as follows

Bottom up = NI + depreciation

NI=EBIT-Taxes

= $99,400-$23,856

= $75,544

Bottom up=$75,544 + $26,100

= $101,644

3 0

3 years ago

Suppose you are the Purchasing Manager for a large chain of restaurants in the United States, and you need to make your semiannu

Leto [7]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.

4 0

3 years ago

Anthony's Chair Factory currently employs 50 workers, who produce 800 chairs. If Anthony hires a 51st worker, output will rise t

AURORKA [14]

Answer:

18.13

Explanation:

925 / 51 = Answer

Answer = 18.13

7 0

3 years ago