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3 years ago

A debt-free firm has net income of $210,000, taxes of $55,822.78, and depreciation of $42,000. What is the operating cash flow?

Business

1 answer:

hammer [34]3 years ago

6 0

Answer:

Operating cash flow= $196,177.22

Explanation:

Giving the following information:

Net income= $210,000

Tax= $55,822.78

Depreciation= $42,000

Because the Tax was determined, to calculate the operating cash flow we need to use the following formula:

Operating cash flow= net income - tax + depreciation

Operating cash flow= 210,000 - 55,822.78 + 42,000

Operating cash flow= $196,177.22

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Answer:

Payback is 19 months

Explanation:

It is a capital budgeting problem. Firm has invested in TQM's Channel Support systems of $1,500,000. It will increase demand of product by 1.7%.

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$166385985- $163608638 = 2781347

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Now consider contribution margin. From total sales direct variable costs are deducted to get total contribution. It is 34.2% . So extral contribution due to 1.7% increase in sales is-

$2781347 x 34/2%= $95122

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3 years ago

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Answer:

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Explanation:

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2 years ago

Variable production costs Plastic for casing $ 171,500 Wages of assembly workers 490,000 Drum stands 215,600 Variable selling co

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Answer:

Part 1.

Contribution margin income statement for the year.

Sales (4,900 x 340) 1,666,000

Less Variable Costs

Plastic for casing 171,500

Wages of assembly workers 490,000

Drum stands 215,600

Sales commissions 161,700 (1,038,800)

Contribution 627,200

Less Fixed Costs

Taxes on factory 6,000

Factory maintenance 12,000

Factory machinery depreciation 72,000

Lease of equipment for sales staff 12,000

Accounting staff salaries 62,000

Administrative management salaries 142,000 (306,000)

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Part 2.

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Contribution margin ratio = $627,200/ $1,666,000 = 37.65 %

Explanation:

The Contribution Margin Income Statement calculates separately the contribution and net income as shown above.

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3 years ago

Assume an organization's current service level on order fill is as follows:

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Answer:

Answer for the question:

Assume an organization's current service level on order fill is as follows:

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Number of orders per year 5,000

Percent of unfilled orders back-ordered 70%

Percent of unfilled orders cancelled 30%

Back order costs per order $150

Lost pretax profit per cancelled order $12,500

a) What is the lost cash flow to the seller at this 80 percent service level?

b) What would be the resulting increase in cash flow if the seller improved order fill to 92 percent

c) If the seller invested $2 million to produce this increased service level, would the investment be justified financially?

d) What is the role of activity-based costing in customer relationship management? In customer segmentation?

is given in the attachment.

Explanation:

Download pdf

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3 years ago