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3 years ago

Pacific Division has the following information:

Business

1 answer:

Luden [163]3 years ago

5 0

Answer:

it will be a net loss of 560,000

It is better to produce at a loss of 60,000 than a loss of 620,000

That's because, the Division cover a good portion of their allocate fixed cost.

Explanation:

The fixed expense are allocate cost. Are unavoidable cost It will remain even if the division is dropped.

The sales and variable cost will be zero.

$\left[\begin{array}{cccc}&Continued&Discontinued&Differential\\Sales&1,200,000&0&-1,200,000\\Variable&-640,000&0&640,000\\Allocate cost&-620,000&-620,000&0\\Result&-60,000&-620,000&-560,000\\\end{array}\right]$

After posting the values, we calculate the differential income.

In this case it will be a loss for 560,000

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Bramble, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $6,600 from sales $200

Advocard [28]

Answer and Explanation:

The preparation of the analysis is shown below:

Particulars Continue Eliminate Net Income (Decrease)

Sales $200,000 $0 -$200,000

Less: Variable Costs $176,000 $0 -$176,000

Contribution margin $24,000 $0 -$24,000

Fixed Costs $30,600 $20,600 $10,000

Net Income/Loss -$6,600 -$20,600 -$14,000

As we can see that in both the cases whether eliminate or continue the amounts comes in negative but in continue there is a less amount of loss as compared to eliminated one

Therefore, in this case, the big Bart line could be continued

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3 years ago

Bramble Corp. factors $3250000 of its accounts receivables without recourse for a finance charge of 4%. The finance company reta

My name is Ann [436]

Answer: $3,672,500

Explanation:

Based on the information given in the question, the debit to cash in the journal entry to record this transaction will be:

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3 years ago

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3 years ago

A proposed new project has projected sales of $186,000, costs of $90,500, and depreciation of $24,900. the tax rate is 22 percen

Black_prince [1.1K]

Operating cash flow will be $79,968

A proposed new project has projected sales of $186,000, costs of $90,500, and depreciation of $24,900. the tax rate is 22 percent. Calculate operating cash flow using the four different approaches.

EBIT + Depreciation - Taxes

EBIT = S - C -D

EBIT =186,000-90,500-24,900= 70,600

Depreciation = 24,900

Taxes= EBIT x Tax Rate = (.22) x 70,600

= 15,532

EDT= 70,600 + 24,900 - 15,532 = $79,968

Top-down

= Sales - Costs - Taxes

= 186,000 - 90,500 - 15,532= $79,968

Tax-shield

= (Sales - Cost) x (1 - tax rate) + Depreciation X Tax rate

= (186,000 - 90,500) x (1 - 0.22) + 24,900 x 0.22 = $79,968

Bottom-up

= Net income + Depreciation

Net income = EBIT - Tax

Net income = 70,600 - 15,532

= 55,068

= 55,068 + 24,900

= $79,968

What is operating cash flow?

Cash flow from operating activities (CFOA) is the revenue a company generates through ongoing, regular business activities like the creation and sale of goods or the rendering of client services (CFO). It is the first item on a company's cash flow statement.

Learn more about operating cash flow: brainly.com/question/17001006

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2 years ago