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Ilya [14]
3 years ago
15

The Oakland Mills Company has disclosed the following financial information in its annual reports for the period ending March 31

, 2013: sales of $1,430,000, costs of goods sold of $816,000, depreciation expenses of $175,000, and interest expenses of $89,575. Assume that the firm has a tax rate of 35 percent. Compute the cash flows to investors from operating activity. (Round answer to 2 decimal places, e.g. 15.25.) Cash flow from operating activity $
Business
1 answer:
Dmitry [639]3 years ago
3 0

Answer:

The cash flows to investors from operating activity is $402,126.25

Explanation:

For computing the cash flow from operating activity, first, we have to compute the net income which is shown below:

= Sales - cost of goods sold - depreciation expense - interest expense - income tax expense

where,

The income tax expense equals to

= (Sales - cost of goods sold - depreciation expense - interest expense) × income tax rate  

= $1,430,000 - $816,000 - $175,000 - $89,575) × 35%

= $122,298.75

The other items values would remain the same

Now put these values to the above formula  

So, the value would equal to

= $1,430,000 - $816,000 - $175,000 - $89,575 - $122,298.75

= $227,126.25

Now the cash flow from operating activity equals to

= Net income + depreciation expense

= $227,126.25 + $175,000

= $402,126.25

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Answer:

$315,600

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                                                                                 investment

                                                                   Dr                                        Cr

Investment                                     $182,000

Dividend received                                                                              $8400

Income received                              $30,000

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5 0
2 years ago
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Answer:

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Explanation:

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We are not able to manage all the stuff in order to satisfying the customer requirement and also lacks the opportunities for the self expression. Therefore, Quick service is the correct answer.  

4 0
2 years ago
A new sports car sells for $40,000. The value of the car decreases by 12% annually. After how many years will it be worth half o
Marysya12 [62]

Answer:

n= 6.11 years

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n= ln(20,000/40,000) / ln(1.12)

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8 0
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