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Degger [83]
3 years ago
12

Greater Energy Systems recently reported $9,250 of sales, $5,750 of operating costs other than depreciation, and $700 of depreci

ation. The company had no amortization charges, it had $3,200 of outstanding bonds that carry a 5% interest rate, and its federal-plus-state income tax rate was 35%. In order to sustain its operations and thus generate sales and cash flows in the future, the firm was required to make $1,250 of capital expenditures on new fixed assets and to invest $300 in net operating working capital. 8. Refer to the data for Greater Energy Systems. What is the firm's free cash flow
Business
1 answer:
9966 [12]3 years ago
5 0

Answer:

$970

Explanation:

The computation of the free cash flow is shown below:

As we know that

Free cash flow is

= EBIT (1 - tax rate) + depreciation expense - capital expenditure - net working capital

where

EBIT is

Sales  $9,250.00

Less: Operating costs excluding depreciation  $5,750.00

Less: Depreciation $700.00

Operating income (EBIT) $2,800.00

Now the free cash flow is

= $2,800 × (1 - 0.35) + $700 - $1,250 - $300

= $1,820 + $700 - $1,250 - $300

= $970

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Accounts receivable arising from sales to customers amounted to $80,000 and $65,000 at the beginning and end of the year respect
Fittoniya [83]

Answer:

d. $165,000

Explanation:

Basically there are three types of activities:

1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.

2. Investing activities: It records those activities which include purchase and sale of the fixed assets

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.  

The computation is shown below:

Cash flow from Operating activities  

Net income                   $150,000

Add: Decrease in accounts receivable $15,000      ($65,000 - $80,000)

Net Cash flow from Operating activities           $165,000

4 0
3 years ago
Which scenario best reflects the relationship between production and demand in a recession?
Lunna [17]

Answer:

A car dealership can't sell their stock

Explanation:

5 0
3 years ago
Suppose the supply of shaved ice is more elastic with respect to price in the long run than in the short run. All else equal we
Olenka [21]

Answer:

<h2>The answer in this case would be the last option in the answer list or options given in the question or falls equally on buyers and sellers in the short run but not the long run.</h2>

Explanation:

  • In Microeconomics,elasticity level of supply usually has an inverse or negative relationship with the tax burden in the market.
  • Therefore,higher elasticity of supply among the sellers or firms implies that they are relatively more sensitive or responsive to any price change in the market and would not be much willing to accept the burden of the tax which is reflected by an increase in the production cost of output or acceptance of a lower relative price for the output sold.
  • Hence,the sellers or firms will reduce the quantity supplied of the output considerably in the market due to the tax imposition in the long run.Thus,even if the tax burden might be equally distributed among both the consumers/buyers and sellers/firms,the buyers/consumers will have a higher tax burden in the long run than the sellers/firms due to higher price elasticity of supply in the long run.
8 0
3 years ago
General Electric manufactures electric motors for its clothes dryers. The firm uses a formal vendor rating system to evaluate su
AVprozaik [17]

Answer:

post purchase behavior stage

Explanation:

The post purchase behavior stage is the last stage in the buying decision process. At this stage the company (or an individual) will evaluate whether they are satisfied with the product or service they purchased. Did the product or satisfied all their needs? Was it better than expected, or worse? Was it delivered on time, the technical support was good? etc.

If the evaluations are positive during this stage, then the company (or individual) are likely to repeat the purchase, if not, then they will probably choose another supplier.

8 0
3 years ago
The potential benefits a person or business gives up when making an
natulia [17]

The potential benefits a person or business supplies when getting an

economic decision is called the opportunity cost.

<h3>What is an opportunity benefit in economics?</h3>

Opportunity cost is the decision that one takes in order to get something. The benefit is the decision that a person gives in personal or professional life.

If the outcome of the decision is in favor than the opportunity cost is in benefit and if the decision has consequences than the opportunity cost is in loss.

Thus, option C is correct.

For more details about Opportunity cost, click here:

brainly.com/question/20446148

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4 0
2 years ago
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