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Ivahew [28]
3 years ago
7

Smashed Pumpkins Co. paid $88 in dividends and $526 in interest over the past year. The company increased retained earnings by $

438 and had accounts payable of $522. Sales for the year were $16,055 and depreciation was $696. The tax rate was 38 percent. What was the company's EBIT?
Business
1 answer:
Andreas93 [3]3 years ago
8 0

Answer:

$1,374

Explanation:

With regards to the above, first, we will compute the net income.

Net income = Dividends + Increase in retained earnings

= $88 + $438 = $526

Therefore,

EBIT = [Net income / (1 - tax rate)] + Interest

= [$526 / (1 - 0.38)] + $526

= [$526 / 0.62] + $526

= $848 + $526

= $1,374

The company's EBIT is $1,374

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Answer:

The total manufacturing cost per unit is $10.50

Explanation:

Material cost per unit = Total material cost / Equivalent units of Material cost

Material cost per unit = $60,000 / 10,000 = $6 per unit

Conversion cost per unit = Total Conversion cost / Equivalent units of conversion cost

Conversion cost per unit = $90,000 / 20,000 = $4.5 per unit

Total Manufacturing cost = $6 + $4.50 = $10.50 per unit

3 0
3 years ago
The online book review magazine, bookreviewusa, offers free access to all their reviews and author interviews; however, only tho
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Answer:

Inform or entertain the audience

Explanation:

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4 years ago
A machine with a cost of $148,000 and accumulated depreciation of $94,000 is sold for $68,000 cash. The amount that should be re
IRINA_888 [86]

Answer:

Zero

Explanation:

There are three types of activities in the cash flow statement which are described below:  

1. Operating activities: It includes those transactions which records cash payments and cash receipts. Like - collection, wages, etc.  

2. Investing activities: It records those activities which include purchase and sale of the long term assets. The purchase is an outflow of cash whereas sale is an inflow of cash .

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The sale of machine is an investing activity. Hence no amount would be reported i.e zero amount would be recorded

6 0
3 years ago
What is the beta for a 2 stock portfolio with a 0.43 weight in Walmart stock and the remainder in Amazon
Contact [7]

Answer: 0.82

Explanation:

From the given formulas, the beta of Walmart is 0.3616 and the beta of Amazon is 1.1634.

The portfolio beta is going to be a weighted average of these two betas:

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= 0.155488 + 0.663138

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7 0
3 years ago
Below are six statements. indicate whether each on pertains micareconomics.
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Answer:

B), C) and F)

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Therefore in the given case, the microeconomics covered in B, C and F options

5 0
3 years ago
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