List the components of capital expenditure

________ insurance is life insurance that is provided over a specified time period and does not build cash value.

zhannawk [14.2K]

The correct answer is Term

8 0

3 years ago

DuPont system of analysis Use the following ratio information for Johnson International and the industry averages for Johnson's

Verizon [17]

Answer:

a) DuPont analysis for Johnson International

2013: 0.059 x 2.11 x 1.75 = 0.2179 = 21.79%

2014: 0.058 x 2.18 x 1.75 = 0.2213 = 22.13%

2015: 0.049 x 2.34 x 1.85 = 0.2121 = 21.21%

b) DuPont analysis for industry averages

2013: 0.054 x 2.05 x 1.67 = 0.2121 = 21.21%

2014: 0.047 x 2.13 x 1.69 = 0.1692 = 16.92%

2015: 0.041 x 2.15 x 1.64 = 0.1446 = 14.46%

c) Johnson International's drivers follow the same tendency as the industry's average, e.g. net profit margin decreased in a similar manner, and total asset turnover increased also in a similar manner to the industry's average. The only driver that doesn't follow the industry's trend is financial leverage. While other companies in the same industry decreased their financial leverage, Johnson increased it. You should further analyze why this happened and what are the potential consequences.

Explanation:

The DuPont analysis is used to break down ROE into 3 different components and that way you can analyze whether a company's high ROE comes along with a high risk. The following formula is used to calculate ROE based on 3 different factors:

R OE = net pro fit margin x total assets turnover x financial leverage

8 0

4 years ago

Coache Corporation is considering a capital budgeting project that would require an investment of $120,000 in equipment with a 4

Kaylis [27]

Answer:

a. $44,000

Explanation:

The computation of the total cash flow net of income taxes in year 3 is shown below:

= Incremental sales - annual incremental cash operating expenses - one-time renovation expense - depreciation expense - income tax expense + depreciation expense

= $310,000 - $230,000 - $30,000 - $30,000 - $6,000 + $30,000

= $44,000

Since depreciation is a non-cash expense so it would be added back to the computation part

The depreciation expense would be

= (Original cost - residual value) ÷ (useful life)

= ($120,000 - $0) ÷ (4 years)

= ($120,000) ÷ (4 years)

= $30,000

And, the income tax expense would be

= (Incremental sales - annual incremental cash operating expenses - one-time renovation expense - depreciation expense) × tax rate

= ($310,000 - $230,000 - $30,000 - $30,000) × 30%

= $20,000 × 30%

= $6,000

6 0

3 years ago

Complete the following sentence.

Anni [7]

Answer:

Satisfy their wants and needs

Explanation:

5 0

4 years ago

CLEAR TRANSMISSIONS COMPANY Income Statement For the Year Ended December 31, 2018 ($ in 000s) Sales $ 1,620 Cost of goods sold 6

vodka [1.7K]

Answer:

Net Cash from Operating Activities is $488 after making all the non-adjustments, working capital changes adjustments and adjustments of interest and tax cash payments.

Solution in Excel file is attached for your reference.

Explanation:

Clear Transmissions Company

Statement of Cash Flows for the year ended December 31, 2018

Net Profit before tax $396

Add: Adjustment for Interest Expense $60

Profit from operations $456

Adjustment of Non Cash Expenses:

Depreciation $205

Patent Amortization $20

Loss on Sale of Cash Equivalents $11

Decrease in Salaries & Wages Payable $(11)

Increase in Interest Payable $10

Increase in Tax Payable $10

Operating profit before working capital changes $701

Working Capital Changes

Decrease in Inventory $15

Decrease in Accounts Receivables $17

Increase in Accounts Payable $11

Cash generated from Operations $744

Tax Paid (Working 1) $(188)

Interest Paid (Working 2) $(50)

Net cash from operating activities $506

Working 1

Opening Tax Payable $20

Add: Tax Payable charged to Income Statement $198

Less: Cash Payment (Balancing Figure) $(188)

Closing Tax Payable $30

Working 2

Opening Interest Payable $30

Add: Interest Payable charged to Income Statement $60

Less: Cash Payment (Balancing Figure) $(50)

Closing Interest Payable $40

Download xlsx

6 0

3 years ago

List the components of capital expenditure​

List the components of capital expenditure