1. A

During the year, Xero, Inc., experienced an increase in net fixed assets of $ 300 comma 000 and had depreciation of $ 204 comm

ElenaW [278]

Answer:

$120,000

Explanation:

NFAI = Change in net fixed assets + Depreciation

= $300,000 + $204,000

= $504,000

NCAI = Change in current assets - Change in accounts payable

= $146,000 - $73,000

= $73,000

OCF = $697,000

FCF = OCF - NFAI - NCAI

= $697,000 - $504,000 - $73,000

= $120,000

5 0

4 years ago

Moyas Corporation sells a single product for $10 per unit. Last year, the company's sales revenue was $200,000 and its net opera

Anna11 [10]

Answer:

Break-even point in units= 18,000 units

Explanation:

Giving the following information:

Selling price= $10

Fixed costs= $72,000

Sales= 200,000

Net income= 8,000

<u>First, we need to calculate the unitary contribution margin.</u>

Sales in units= 200,000/10= 20,000 units

Total contribution margin= net income + fixed costs

Total contribution margin= 8,000 + 72,000= $80,000

Unitary contribution margin= 80,000/20,000= $4

<u>Now, using the following formula, the break-even point in units.</u>

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 72,000/4

Break-even point in units= 18,000 units

8 0

4 years ago

Stenson, Inc., imposes a payback cutoff of three years for its international investment projects. Assume the company has the fol

Citrus2011 [14]

Answer:

Stenson, Inc.

The payback period for each project is:

Project A = 3 years

Project B = 4 years

Explanation:

a) Data and Calculations:

Year Cash Flow A Cash Flow B

0 –$ 64,000 –$ 109,000

1 26,500 28,500

2 34,400 33,500

3 28,500 25,500

4 14,500 231,000

Total inflow $103,900 $318,500

b) The payback period is the time when the cash outflow is recouped. For project A, the payback period occurs in year 3. For project B, the payback period occurs in year 4. Based on the company's cutoff of three years, Project B may not be accepted even with its large cash inflow in year 4. Therefore, the best decision will be to discount the cash inflows with a suitable rate of interest. This will help Stenson, Inc. to decide between accepting Project A or Project B.

6 0

3 years ago

Before moving out of their apartment, Kelly and Doug decided to have their carpets cleaned by Stanley Steemer, a company special

lilavasa [31]

Answer: Intangibility

Explanation: The intangibility of services is the incapacity to evaluate or judge the worth gained from engaging in an activity or work using any substantial proof. it is the service whereby there is no substantial product that the consumer can buy, which can be seen or felt, meaning that services do not have physical attributes.

In this case, Kelly and Doug couldn't judge the service with respect to the possible outcome prior to paying for it because of the intangibility of the service rendered which was carpet cleaning.

8 0

3 years ago

LO 3.5If a firm has a contribution margin of $78,090 and a net income of $13,700 for the current month, what is their degree of

kati45 [8]

Answer:

5.7

Explanation:

The contribution margin characterizes the marginal profit per unit of sales. The indicator is useful in various calculations, and can be used as a measure of operational leverage. As a rule, low values of the indicator are characteristic in labor-intensive sectors, high - in capital-intensive industry.

We have these data:

-contribution margin (CM) : $78,090

-net income (NI) :$13,700

-the degree of operating leverage (DoL) : ?

DoL=CM/NI= 78090/13700=5.7

6 0

4 years ago