Rent of $1,000 per month is paid for the next twelve months on October 1st, 1988. As a result of this transaction:

Consider a four-year project with the following information: initial fixed asset investment = $595,000; straight-line depreciati

777dan777 [17]

Answer:

4.68

Explanation:

The computation of operating cash flow is shown below:-

Sales = $45 × 103,000 $4,635,000

Less: Variable cost $39 × 103,000 $4,017,000

Contribution margin $618,000

Less:- Fixed cost $270,000

EBITDA $348,000

Less: Depreciation ($595,000 ÷ 4) $148,750

EBIT $199,250

Less: Tax (199250 × 0.22) $43,835

Net income $155,415

Add: Depreciation $148,750

Operating cash flow $304,165

Change in Operating cash flow = (Selling price - Variable cost per unit) × (1- Tax rate)

= ($45 - $39) × (1 - 0.22)

= 6 × 0.78

= $4.68

Operating cash flow (after increase in sales by 1 unit)

Sales ($45× 103,001) $4,635,045

Less: Variable cost (39 × 103,001) $4,017,039

Contribution margin $618,006

Less: Fixed cost $270,000

EBITDA $348,006

Less: Depreciation $595,000 ÷ 4 $148,750

EBIT $199,256

Less: Tax ($199,256 × 0.22) $43,836.32

Net income $155,419.68

Add: Depreciation $148,750

Operating cash flow $304,169.68

Increase in operating cash flow = Cash flow after 1 unit increase in sales - Operating cash flow at current level.

= $304,169.68 - $304,165

= 4.68

6 0

3 years ago

Play-It-Loud, LLC, provides music-streaming services online subject to complex pricing schedules. To control specific offers for

topjm [15]

Answer:

b. a provision relating to the resolution of any dispute.

Explanation:

As the company provides a streaming service that has complex pricing schedules and when the customers make purchases a contract in which both parts have obligations appears, it is important that the terms are clear and one important point is to include a provision relating to the resolution of any dispute that establishes the ways in which a problem that may arise between both parts can be fixed following a procedure that is detailed there to avoid serious issues that can result in spending a lot of money in legal fees.

7 0

3 years ago

Which of the following statements is correct with respect to a limited partnership?

Viefleur [7K]

Answer: option D

Explanation: A Limited liability partnership is an ownership style which exhibits characteristics of both partnership and corporations. This was implemented for the benefit of business entities and for the ease of owners.

a. In a limited liability a limited partner will never be personally liable for the debts.

b. A general partner can be a limited partner as long as there are two legal partners.

c. A general partner cannot be a secured creditor as he will always have unlimited liability.

d. A Limited liability partnership is the form of partnership in which some or all of the partners have limited liability.

5 0

3 years ago

Love Company’s accounting records show an after-closing balance of $42,100 in its Retained Earnings account on December 31, 2018

konstantin123 [22]

Answer and Explanation:

Closing Balance (Retained earning ) of 31 Dec 2018 is called Opening Balance of 1 Jan 2019 , i.e. $42,100

There is no particular information provide for 1 Jan 2018 .So, assume there is Zero balance of retained Earning

Calculation of retained earning of 31 Dec 2017

Retained earning $42,100

Less: revenue during the year $19,400

Add: Expenses During the year $9,800

Add : Dividend $500

Retained earning on 31 Dec 2017 $33,000

Retained earning is a temporary account So, $33,000 is balance of Retained earning At 30 June 2018.

4 0

3 years ago

A company determined that the budgeted cost of producing a product is $30 per unit. On June 1, there were 80,000 units on hand,

gtnhenbr [62]

Answer:

c) $9,000,000

Explanation:

The cost of good sold = Cost per unit × Quantity sold

Quantity sold = 300,000, cost per unit = $30

The cost of sold = $30 × 300,000 = $9,000,000

This can be confirmed as follows:

Unit

opening inventory 80,000

Production(see note below) 340,000

Available or sale 420,000

Closing inventory (120,000)

Units sold 300,000

Cost of units sold = 300,000 × $30 = $9,000,000

Note :

Production budget = sales budget + closing inventory - opening inventory

= 300,000 + 120,000 - 80,000 = 340,000 units

6 0

3 years ago