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kumpel [21]
4 years ago
12

Bennett Co. has a potential new project that is expected to generate annual revenues of $253,100, with variable costs of $140,00

0, and fixed costs of $58,300. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $19,500. The annual depreciation is $23,200 and the tax rate is 40 percent. What is the annual operating cash flow?
Business
1 answer:
Vlad [161]4 years ago
5 0

Answer:

Hence, the annual operating cash flow is:  $44860

Explanation:

                                 Year 0    Year 1

Initital investment    

Inflows                                $253,100  

variable costs                       ($140,000)

fixed cost                             (53800)

Depreciton                         ($23,200)

Interest expense                 ($19,500)

Net cash inflows                   $16600 

Tax at 40%                           ($6640)

Net Cashinflows after tax      $9960

Add Depreciation                   $23,200  

Interest net of tax                   $11.700

Operating cashflows              $44860

Hence, the annual operating cash flow is: $44860

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The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 60,000 shares were origina
ruslelena [56]

Answer:

55,000 shares

Explanation:

Given that

60000 shares were originally given

5000 were subsequently reacquired

Thus. Net number of shares issued

= number of shares originally issued - number subsequently reacquired

= 60000 - 5000

= 55,000

Number of outstanding shares therefore is 55,000.

NOTE that, outstanding shares refer to the number of shares that has been issued, purchase or authorized by investors, that is, the number of shares currently held by all is shareholders.

3 0
3 years ago
What types of businesses are needed to make the product and deliver it to the final consumer.
Gnesinka [82]

Answer:

Manufacturing and Merchandising businesses

Explanation:

The type of Business needed to make the product is known as MANUFACTURING business. This business buys raw materials and refined them into products that later sell in bulk to wholesalers.

On the other hand, Merchandising business is a form of business that involves buying refined products at wholesale price and then sell to the final consumers.

Hence, in this case, then Greece answer is MANUFACTURING and MERCHANDIZING Business.

8 0
3 years ago
In addition, your MARGIN PER UNIT must cover another set of important but potentially large costs. To investigate these addition
babymother [125]

Effect of Contribution Margin on the other costs is given below

Explanation:

1.Contribution margin per unit is the net amount that each additional unit sold contributes towards a company's fixed costs and profit. It equals the difference between the product's sales price and variable cost per unit.It represents the incremental money generated for each product/unit sold after deducting the variable portion of the firm's costs.Also known as dollar contribution per unit, the measure indicates how a particular product contributes to the overall profit of the company. It provides one way to show the profit potential of a particular product offered by a company and shows the portion of sales that helps to cover the company's fixed costs. Any remaining revenue left after covering fixed costs is the profit generated.

2.The Formula for Contribution Margin Is

The contribution margin is computed as the difference between the sale price of a product and the variable costs associated with its production and sales process.

Contribution Margin=Sales Revenue - Variable Costs

3.The contribution margin is the foundation for break-even analysis used in the overall cost and sales price planning for products. The contribution margin helps to separate out the fixed cost and profit components coming from product sales and can be used to determine the selling price range of a product, the profit levels that can be expected from the sales, and structure sales commissions paid to sales team members, distributors or commission agents.

4,The contribution margin represents the portion of a product's sales revenue that isn't used up by variable costs, and so contributes to covering the company's fixed costs.

The concept of contribution margin is one of the fundamental keys in break-even analysis.

Low contribution margins are present in labor-intensive companies with few fixed expenses, while capital-intensive, industrial companies have higher fixed costs and thus, higher contribution margins

3 0
3 years ago
Suppose iris discovers an element of the it strategic plan stating that it will reduce costs by implementing a specific new tech
torisob [31]
Strategic plans are usually put in place in order to  increase efficiency and to reduce cost. In the scenario given above, Iris has discovered a loophole in the IT strategic plan, because he is aware that a technology that is meant to reduce cost is not going to do so. Because of this, it is right for Iris to speak up and make that fact known. If he refuses to do this, the goal of the strategic plan to reduce cost will be defeated.
7 0
3 years ago
HELP I NEED SOMEONE`S ADVICE
barxatty [35]

Answer:

<em>Ok so Here's my advice</em> -

<em>"If You can't do great things then, do small things in a great way" </em>

<em>Byee!</em>

<em>-Nezuko </em>

4 0
3 years ago
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