1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Sonja [21]
2 years ago
7

OCF from Several Approaches [L01] A proposed new project has projected sales of $125,000, costs of $59,000, and depreciation of

$12,800. The tax rate is 35 percent. Calculate operating cash flow using the four different approaches described in the chapter and verify that the answer is the same in each case.
Business
1 answer:
natulia [17]2 years ago
8 0

Answer:

Please see below

Explanation:

In order to calculate the operating cash flow, we will get the value of net income. The income statement is calculated as;

Sales

$125,000

Less :

Costs

($59,000)

Depreciation

($12,800)

EBIT

$53,200

Less tax 35%

($18,620)

Net income

$34,580

1. Using the tax shield method

OCF = (Sales - Costs)(1 - Tax) + Tax(Depreciation)

OCF = ($125,000 - $59,000)(1 - 35%) + 35%($12,800)

OCF = ($66,000)(0.65) + $4,480

OCF = $42,900 + $4,480

OCF = 47,380

2. Using the financial calculation

OCF = EBIT + Depreciation - Taxes

OCF = $53,200 + $12,800 - $18,620

OCF = $47,380

3. Using the top down approach

OCF = Sales - Costs - Taxes

OCF = $125,000 - $59,000 - $18,620

OCF = $47,380

4. Using the bottom up approach

OCF = Net income + Depreciation

OCF = $34,580 + $12,800

OCF = $47,380

You might be interested in
They have each been working​ full-time jobs on a design team for a​ high-tech firm. They decided to approach their manager with
harkovskaia [24]

Answer:

Job sharing

Explanation:

Job sharing here is a technique whereby the two people share a full-time job responsibilities into a part-time roster to finish off the job one person has been doing in a single full-time job. This redesign technique usually occurs where the workers are looking for a way to reduce their workload without quitting the job entirely or done to give more attention to a loved one at home.

7 0
2 years ago
How to improve your style of studying any help??
astraxan [27]
I advice you to listen to instramental music or your favorite music to help u focus.

Trust me this works 
:)
3 0
3 years ago
Read 2 more answers
Last year Bold and Best accounted for 56.5% of Baldwin's sales. Over the next few years, what should worry Baldwin's management
DaniilM [7]

Answer:

Explanation:

4 worries about Bold and Best (BB) are:

- Demand for BB may fall in the next few years, as customers are now less interested in purchasing BB or there is another substitute product for BB which is available in the market.

- Input costs/Production cost for BB may rise in the next few years, may be because of shortage of raw materials.

- The decline in BB sales may affect Baldwin's profitability as a whole because BB's revenue is currently the largest portion of the total revenue.

- Real purchasing power of customers fall because of a rise in expected inflation in the economy, which will lead to a fall in sales of BB.

6 0
3 years ago
Your customer is implementing Oracle Procurement Cloud applications with multiple Requisition Business Units. Each Business Unit
Blizzard [7]

Answer:

E. Procurement Requester

Explanation:

  • Internal supplier registration may come from one of the following three streams:
  • Sourcing Invitation: Suppliers can be invited to register through sourcing negotiations.
  • Internal Supplier Request: The Supplier Administrator may invite suppliers to register.
  • Self-service collection: The supplier requests a collection
  • Reference: Oracle Procurement Cloud Using Collection
6 0
2 years ago
When a firm grants licenses internationally, it is giving foreign companies access to its:?
scoundrel [369]
<span>When a firm grants licenses internationally, it is giving foreign companies access to its trademarks, </span>technology and patents. Having your licenses and business become international is a huge gain for most businesses. When items go international, they have a larger market they can sell their products too, but there are also some risk to it as well. Allowing the foreign countries and companies to see how your products work inside and out benefit them while bringing in more profit to the international licensee. 
4 0
3 years ago
Other questions:
  • The manager is responsible for knowing the food sanitation rules this includes the supervision of food handlers in
    5·1 answer
  • In its 2016 annual report, Caterpillar Inc. reported the following (in millions): 2016 2015 Sales $38,537 $47,011 Cost of goods
    13·1 answer
  • The Flapjack Corporation had 8,200 actual direct labor hours at an actual rate of $12.40 per hour. Original
    15·1 answer
  • Which procedure would be of most assistance to an auditor discovering a large credit sale that has erroneously been recorded twi
    6·1 answer
  • An investor purchases one municipal and one corporate bond that pay rates of return of 8% and 10%, respectively. If the investor
    14·1 answer
  • A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. This item would be included in
    8·1 answer
  • Suppose the u.s. house of representatives is debating a bill to fund construction and maintenance for the nation's highway syste
    5·1 answer
  • Inventory records for Marvin Company revealed the following:
    11·1 answer
  • Which of the following is a tactic for the strategy of training customer-service staff to reach the goal of improving this year’
    12·1 answer
  • Describe the importance of employee benefits as a strategic component of fulfilling the goals of hrm?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!