Answer:
The Free Cash Flow for 2014 was ($41.34 million)
Explanation:
Value of free cash flow = EBIT (1 - tax rate) + Depreciation - Capital expenditure - Working capital
= $159 million ( 1 - 0.26) + $41 million - ($322 million - $124 million) - ($65 million - $63 million)
= $159 million (0.74) + $41 million - $198 million - $2 million
= $117.66 million + $41 million - $198 million - $2 million
= -$41.34 million.
A credit card company wants your business. If you accept their offer and use their card, they will deposit % of your monetary transactions into a savings account that will earn a guaranteed % per year. If your annual transactions total an average of $, how much will you have in this savings plan after years?
Answer:
$6,003.05
Explanation:
Calculation for the amount you will have in the saving plan after 10 years
First step is to find the annual amount
Annual amount = $25,000 x 2%
Annual amount= $500
Second step is to find (F/A, 4%, 10) using financial calculator
Hence,
(F/A, 4%, 10)=(12.0061)
Now let calculate how much will you have in the saving plan
Saving plan amount =$500 (F/A, 4%, 10)
Saving plan amount= $500 × (12.0061)
Saving plan amount= $6,003.05
Therefore the amount you will have in the saving plan after 10 years will be $6,003.05
The amount that should be in the saving years after 10 years is $6,003.05.
Calculation of the amount:But before this, determining the following calculations:
Annual amount
= Average annual transactions x deposit percentage
= $25,000 x 2%
Annual amount= $500
Now the amount of saving plan is
Saving plan amount
For saving plan we simply multiply the annual amount with the factor so that the actual amount could come
= Annual amount * factor
=$500 (F/A, 4%, 10)
= $500 × (12.0061)
= $6,003.05
Hence, The amount that should be in the saving years after 10 years is $6,003.05.
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Nash Company includes one coupon in each box of soap powder that it packs, and 10 coupons are redeemable for a premium (a kitchen utensil). In 2020, Nash Company purchased 8,800 premiums at 85 cents each and sold 101,000 boxes of soap powder at $3.30 per box; 42,000 coupons were presented for redemption in 2020. It is estimated that 60% of the coupons will eventually be presented for redemption. Prepare all the entries that would be made relative to sales of soap powder and to the premium plan in 2020.
Answer:
Date Account Title and Explanation Debit Credit
2020 Inventory of premium $7,480
Cash $7,480
(To record the purchase of 8,800 premium at $0.85 each)
Date Account Title and Explanation Debit Credit
2020 Cash $333,300
Sales revenue $333,300
(To record sale of 101,000 boxes at $3.30 each)
Date Account Title and Explanation Debit Credit
2020 Premium Expenses $3,570
(42,000 * 0.1 * 0.85)
Inventory of premiums $3,570
(To record premium redemption)
Date Account Title and Explanation Debit Credit
Year end Premium expenses $1,581
2020 Premium liability $1,581
Workings
Particulars Amount
Estimated redemption on number of boxes sold 60,600
= 101,000 * 60%
Less: Coupon already redeemed 42,000
Premium liability of coupons 18,600
Cost of premium liability = 18,600 * 10% * 0.85
Cost of premium liability = $1,581
Upon completing an aging analysis of accounts receivable, the accountant for Rosco Works prepared and aging of accounts receivable and estimated that $5,400 of the $98,400 accounts receivable balance would be uncollectible. The allowance for doubtful accounts had a $440 debit balance at year-end prior to adjustment. What is the amount of bad debt expense?
Answer:
$5,440
Explanation:
Calculation for the amount of bad debt expense
Using this formula
Bad debt expense= Credit balance Allowance for doubtful accounts + Debit balance Allowance for doubtful accounts
Let plug in the formula
Bad debt expense=$5,000+$440
Bad debt expense=$5,440
Therefore Bad debt expense amount will be $5,440
Managers are increasingly viewing the world as "one big marketplace" due to globalization and the interconnectedness of national economies. Of the possible management orientations, which would be counterintuitive to this mentality and result in an inability to see opportunities in other countries?
Answer: Ethnocentric orientation
Explanation:
The options are;
A. Regiocentric orientation
B. Geocentric orientation
C. Polycentric orientation
D. Ethnocentric orientation
E. Multicentric orientation
Ethnocentric orientation is an orientation whereby one believes that their home country is superior and better than other countries and this orientation usually leads to lost opportunities that could have been used by a company to expand. Managers who see the world as a big marketplace typically have geocentric orientation.
What does software alone enable a computer to do?
O connect to the Internet
O control processing speeds
O interact with the user
O manage other software
Answer:
its a
Explanation:
An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $4,700,000 and will be sold for $1,350,000 at the end of the project. If the tax rate is 23 percent, what is the aftertax salvage value of the asset
Answer:
$1,216,858
Explanation:
Acquisition cost of an asset = $4,700,000
Salvage value of an asset = $1,350,000
Tax rate = 23%
The after tax salvage value of the asset is
= $1,350,000 - ($1,350,000 - $4,700,000) × (11.52% + 5.76%) × 23%
= $1,350,000 - $3,350,000 × (0.1152 + 0.0576) × 0.23
= $1,350,000 - $133,142
= $1,216,858
Michael owns Michael’s Tantalizing Tees, a T-shirt shop in a small college town in New Hampshire. With a staff of three part-time employees, Michael operates the business in accordance with his personal goals, dreams, and capabilities. Does Michael have an agency conflict to deal with?
Answer:
No
Explanation:
Agency conflict occur when the owners of a firm do not manage the company. Instead the firm is managed by mangers. As a result, the interest of the manger might not be aligned with that of the owners and as a result the manager would not act in the best interest of the owners.
Agency problem is more common in public companies
Since Michael owns and operates the shop, there is no agency company as he seems to be a sole proprietor
The Aleutian Company produces two products, Rings and Dings. They are manufactured in two departments—Fabrication and Assembly. Data for the products and departments are listed below. Product Number of units Labor hrs per unit Machine hours per unit Rings 1,000 4 6 Dings 2,000 3 9 All of the machine hours take place in the Fabrication Department, which has an estimated overhead of $90,000. All of the labor hours take place in the Assembly Department, which has an estimated total overhead of $105,000. The Aleutian Company uses departmental overhead rates. The Fabrication Department uses machine hours for an allocation base, and the Assembly Department uses labor hours. What is the Fabrication Department overhead rate per machine hour?
Answer:
$3.75
Explanation:
The computation of the fabrication department overhead rate per machine hour is shown below:
But before that first determine the following calculations
The Total number of hours is
= 1,000 ×6 + 2,000 × 9
= 6,000 + 18,000
= 24,000
And, the total estimated overhead is $90,000
So, the overhead rate per machine hour for the fabrication department is
= $90,000 ÷ 24,000 hours
= $3.75
Garrett Company had the following activities for a recent year ended December 31: Sold land that cost $23,000 for $23,000 cash; purchased $174,000 of equipment, paying $155,000 in cash and signing a note payable for the rest; and recorded $6,300 in depreciation expense for the year. Net income for the year was $13,000. Prepare the operating and investing sections of a statement of cash flows for the year based on the data provided. (List cash outflows as negative amounts.)
Answer:
Cash flow from Operating Activities
Net income for the year $13,000
Add Depreciation Expense $6,300
Net Cash from Operating Activities $19,300
Cash flow from Investing Activities
Proceeds from Sale of Land $23,000
Purchase of Equipment - $155,000
Net Cash from Investing Activities - $132,000
Explanation:
The operating cash flow can be prepared using the indirect method since the information provided allows so.
To this end, the Net income must be reconciled to the Cash flow from Operating Activities by taking into account, the non-cash items previously deducted or added to Net Income and any adjustment to changes in working capital that needs to be effected on the Net Income.
On the other hand, the Cash flow from Investing Activities is simply the movement in cash arising from Sale or Acquisition of items of Property, Plant and Equipment.
Assume that the Turner, Roth, and Lowe partnership is a limited partnership. Turner and Roth are general partners and Lowe is a limited partner. How much should each partner contribute to cover the remaining capital deficiency of $33,000? (Do not round intermediate calculations. Losses and deficits amounts to be deducted should be entered with a minus sign.)
Question Completion:
Given that they share income and losses in the ratio of 2:3:5 respectively.
Answer:
Each partner should contribute:
Turner = $13,200 (2/5 * $33,000)
Roth = $19,800 (3/5 * $33,000)
Lowe = $0
Explanation:
Since Lowe is a limited, there is no contribution he will make to cover the remaining capital deficiency of $33,000. Instead, the general partners, Turner and Roth, will share the capital deficiency in their income and loss sharing ratios. A limited partner does not share in capital deficiency because his or her liability is limited to the capital contributed initially to the business. General partners are those who run the business and they contribute to capital deficiency because their liabilities are not limited to the initial capital that they have contributed.
Suppose that the price of a unit of medical care is $100 and the person sinsurance policy covers up to $100,000 in expenditures incurred on behalf of the insured individual per year. Show graphically how the maximum payment limit affects the quantity demanded. Assume a zero co-pay up to the limit.
Please find attachment
Answer and Explanation:
Please find attachment for full explanation
We can see from the graph that as the units in medical care demanded increases, insurance policy cover increases to meet maximum value =1000 units of medical care or $100000 in insurance policy cover for medical care
LCM of 36 48 50 and 80
can you please help me
A national sales organization has implemented sets of training courses on its intranet, with a link that allows employees to find and share answers to questions that arise with customers. A system that allows the sharing of knowledge and information throughout an organization is known as Multiple Choice a strategy database. knowledge implementation. Big Data. a wisdom system. knowledge management.
Answer:
knowledge management.
Explanation:
Knowledge management is the process of creating and sharing and managing the know-hows and is a multidisciplinary approach and involves the making best use of knowledge. Its taught in the fields of business management and allows the employee to share the knowledge and information throughout an organization.Plato's Foods has ending net fixed assets of $84,400 and beginning net fixed assets of $79,900. During the year, the firm sold assets with a total book value of $13,600 and also recorded $14,800 in depreciation expense. How much did the company spend to buy new fixed assets
Answer:
$32,900
Explanation:
The computation of new fixed assets is shown below:-
New fixed assets = Net fixed assets + Total book value + Depreciation expenses - Fixed assets
where,
net fixed assets is $84,400
Total book value is $13,600
Depreciation expense is $14,800
And, the fixed assets is $79,900
Now placing these values to the formula
So, the new fixed asset is
= $84,400 + $13,600 + $14,800 - $79,900
= $32,900
Demand at Nature Trails Ski Resort has a seasonal pattern. Demand is highest during the winter, as this is the peak ski season. However, there is some ski demand in the spring and even fall months. The summer months can also be busy as visitors often come for summer vacation to go hiking on the mountain trails. The owner of Nature Trails would like to make a forecast for each season of the next year. Total annual demand has been estimated at 4,000 visitors. Given the last two years of historical data, what is the forecast for each season of the next year
Answer:
Fall 304
Winter 1,974
Spring 716
Summer 1,006
total 4,000
Explanation:
The historical data is missing, so I looked for a similar question and found this:
Season Year 1 Year 2
Fall 208 243
Winter 1,360 1,574
Spring 509 554
Summer 719 774
total 2,796 3,145
if the forecast for total demand during next year is correct, total demand should increase by [(4,000 / 3,145) - 1] x 100 = 27.186% or 855 more customers.
we must determine the % of total demand per season:
Season Year 1 % Year 2 %
Fall 208 7.44% 243 7.73%
Winter 1,360 48.64% 1,574 50.05%
Spring 509 18.20% 554 17.62%
Summer 719 25.72% 774 24.60%
total 2,796 100% 3,145 100%
the average % for each season:
Fall 7.59% x 4,000 = 303.6 ≈ 304
Winter 49.35% x 4,000 = 1,974
Spring 17.91% x 4,000 = 716.4 ≈ 716
Summer 25.15% x 4,000 = 1,006
total 100%
Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following: (Do not round intermediate calculations)Estimates: Machine Life Residual Value Depreciation Method A 5 years $300 Straight-line B 10,000 hours 1,000 Units-of-production C 6 years 900 Double-declining-balanceTIP: Remember that the formula for double-declining-balance uses cost minus accumulated depreciation (not residual value).Required:Record the depreciation expense for the three used machines at the end of year 1.
Problem 13-25 (Algorithmic) (LO. 2) Oak Corporation has the following general business credit carryovers: 2015 $11,750 2016 35,250 2017 12,750 2018 39,250 Total carryovers $99,000 The general business credit generated by activities during 2019 equals $79,200 and the total credit allowed during the current year is $141,000 (based on tax liability). a. Enter the amount (if any) of each year's carryover utilized in 2019. Year Amount of Carryover Utilized 2015 $ 2016 $ 2017 $ 2018 $ 2019 $ b. What is the amount of any unused credits carried forward to 2020?
Answer:
2020 carried forward 37,200
All the previous year carryover were used.
Explanation:
We have 141,000 credit allowed
We use the 99,000 from previous period
Leaving us with: 42,000 of tax credit for this year
Now, as the company generated tax credit for 79,200 during the year
79,200 - 42,000 = 37,200 carried forward to 2020 as are considered unused during 2019
A publicly traded construction company reported that it just paid off a loan that it received 1 year earlier. If the total amount of money the company paid was $1.5 million and the interest rate on the loan was 10% per year, how much money did the company borrow 1 year ago
Answer:
$1,363,636.36
Explanation:
A public traded construction company just paid off a loan that was received one year earlier
The amount of money paid by the company was $1,500,000
The interest rate was 10% per year
= 10/100
= 0.10
Therefore the amount of money that was borrowed last year can be calculated as follows
Let x represent the amount of money borrowed
x + x(0.10)= 1,500,000
x + 0.10x= 1,500,000
1.1x= 1,500,000
x= 1,500,000/1.1
x= $1,363,636.36
Hence the company borrowed $1,363,636.36 a year ago
The following income statement applies to Kawai Company for the current year: Income Statement Sales revenue (200 units × $60) $ 12,000 Variable cost (200 units × $36) (7,200 ) Contribution margin 4,800 Fixed cost (1,600 ) Net income $ 3,200 Required a. Use the contribution margin approach to calculate the magnitude of operating leverage. b. Use the operating leverage measure computed in Requirement a to determine the amount of net income that Kawai Company will earn if it experiences a 10 percent increase in revenue. The sales price per unit is not affected. c-1. Verify your answer to Requirement b by constructing an income statement based on a 10 percent increase in sales revenue. The sales price is not affected. c-2. Calculate the percentage change in net income for the two income statements.
Answer:
a. Use the contribution margin approach to calculate the magnitude of operating leverage.
operating leverage = contribution margin / net income = $4,800 / $3,200 = 1.5
b. Use the operating leverage measure computed in Requirement a to determine the amount of net income that Kawai Company will earn if it experiences a 10 percent increase in revenue. The sales price per unit is not affected.
if sales increase by 10%, net income will increase by 10% x 1.5 = 15%
a 15% increase in net income = $3,200 x 15% = $480
c-1. Verify your answer to Requirement b by constructing an income statement based on a 10 percent increase in sales revenue. The sales price is not affected.
Sales revenue $13,200
Variable costs ($7,920)
Contribution margin $5,280
Fixed costs ($1,600)
Net income $3,680
c-2. Calculate the percentage change in net income for the two income statements.
% change = [($3,680 - $3,200) / $3,200] x 100 = 15% increase
assume that a firm will generate the following cash flows. (ignore liquidation value and initial investment.) also assume that the interest rate you would receive on an alternative investment of equal risk is 10%. end of year 1: $110 end of year 2: $242 end of year 3: $133.10 what is the value of the firm based on these cash flows
Answer:
$400
Explanation:
To find the value of the firm based on the cash flows, we have to find the present value of the cash flows
Present value is the sum of discounted cash flows
Cash flow in year 1 = $110
Cash flow in year 2 = $242
Cash flow in year 3 = $133.10
I = 10%
Present value = $400
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
The difference between a merger and an acquisition is________.
Both terms often refer to the joining of two companies, but there are key differences involved in when to use them.A merger occurs when two separate entities combine forces to create a new, joint organization.
what types of political, economic, and competitive challenges does MTV networks international face by operating worldwide?
Explanation:
Remember, MTV is a cable TV company initially founded in the United States.
Political challenges:
There may be differences in administrative costs in each country of operations. For example, the manner and value of taxes paid in the USA may be different in another country like France.
Economic challenges:
The level of economic growth may affect the amount and number of people who spend on entertainment leading to a decline in revenue and an increased need for aggressive marketing campaigns.
Competitive challenges:
Each country may already have other cable TV companies that a percent of the market share and so this it becomes a challenge to compete with these domestic companies.
Some of the challenges faced by MTV include:
Political:
Some countries may ban MTV for showing music that is against national valuesThere are countries that may take issue with the message of the songs that MTV plays and so they will take action to limit MTV exposure in their countries.
Economic:
Some countries might be unable to afford the fees of the international carriers of MTVCarriers in other nations charge cable fees to show MTV to their people and these people might be unable to pay for these fees depending on their economic development.
Competitive:
Some countries might already have established channels that showcase local music or some countries might just prefer local musicThere may already be local channels that show local songs or the locals may not be too impressed with the songs on MTV as they prefer their own. This would lead to less viewership for MTV.
Find out more at https://brainly.com/question/15089279.
Which of the following is a true statement about China? Group of answer choices The Chinese government's shift from communism to capitalism has led to an increase in FDI. China attracts FDI because the government has eliminated elaborate bureaucracies. The Chinese government manipulates market activities for political purposes. China lacks an educated pool of employees due to slowly developing industrialization.
Answer:
The Chinese government manipulates market activities for political purposes.
Explanation:
1. At the moment, the Chinese government is still a communist-style government, so the first option is wrong.
2. At the moment elaborate bureaucracy is still present in the Chinese model of governance, with about ten million active civil servants under government control. Hence the second option is wrong.
3. Presently, China has over 96% literacy rates, therefore the last option is also wrong.
Hence, the correct answer is the third option which states that "The Chinese government manipulates market activities for political purposes."
What are the most important information needs that a governmental annual report should fulfill for each of the following: __________1. Administrators/managers in the governmental entity. 2. Members of the legislative branch. 3. Interested citizens. 4. Creditors or potential creditors.
Answer:
1. Compensation for employment services that they offer.
2. Disbursement in sufficient proportions of the available funds.
3. How the government have used their tax money.
4. The ability and capacity of the government to honor debts.
Explanation:
Each stakeholder to the governmental annual report hold a different need compared to the other. Therefore it is important to pay attention to whom the financial statements speaks to. The above shows the different needs of the stakeholders to governmental annual report.
Simmons sold merchandise to Drafke for $5,000 with payment terms of 2/10, n/30. Two days later, Drafke returned two of the units and received account credit in the amount of $2,000. If Drafke pays his account in full within ten days of the invoice date, what is the amount of the sales discount?
Answer:
The amount of the sales discount is $60.
Explanation:
The with payment terms of 2/10, n/30 imply that Drafke will enjoy 2% discount if he pays within 10 days; but after the first 10 days, the full invoice amount payable will be due for payment in 30 days without the 2% discount.
From the question, we have:
Total credit sales = $5,000
Sales return = $2,000
Net credit sales = Total credit sales - Sales return = $5,000 - $2,000 = $3,000
If Drafke pays his account in full within ten days of the invoice date, he will enjoy the 2% discount rate. Therefore, we have:
Discount amount = Net credit sales * Discount rate = $3,000 * 2% = $60
Therefore, the amount of the sales discount is $60.
Which activities would be considered project management?
Explanation:
Remember, project management involves activities done to organize and manages resources that are necessary to complete a project.
Here are some of the activities;
Project Initiation phase: this where the requirements or customization of the project begins.
Planning: the planning stage often constitues mainly of budgeting finances and setting timeline for activities.
The others includes;
ExecutionValidation. and Evaluation.Ivanhoe Company increased its investments in marketable securities by $316,370 and paid $1,221,231 for new fixed assets during 2017. The company also repaid $770,200 of existing long-term debt while raising $913,555 of new debt capital. In addition, Ivanhoe had a net cash inflow of $352,002 from the sale of fixed assets, and repurchased stock in the open markets for a total of $51,001. What is the net cash used in long term investing activities by Ivanhoe? What is the net cash provided by the company’s financing activities? (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Answer:
The Net cash from Investing refers to the Cash inflows less the Cash outflows that involved capital expenditure and investments in other company securities.
Net Investing Cash = Cash inflow - outflow
= 352,002 - 316,370 - 1,221,231
= ($1,185,599)
Financing activities are those that involve the raising of capital for the company including through stock and debt.
Net Cash from financing = Inflow - Outflow
= 913,555 - 770,200 - 51,001
= $92,354
As of December 31, 2016, Warner Corporation reported the following: > Dividends Payable: $20,000 > Treasury Stock: $600,000 > APIC: Treasury Stock: $20,000 > APIC: Common Stock: $4,000,000 > Retained Earnings: $3,000,000 During 2017, half of the Treasury Stock was resold for $240,000. The sale of half of the treasury stock would cause Retained Earnings to change by what amount?
Answer:
The Retained Earnings will change by $0.
Explanation:
Selling treasury stock does not affect the amount of the Retained Earnings. What actually drive the value of the Retained Earnings is the difference between Revenue and Costs of operations and the distributions made to the stockholders. Retained Earnings represent the amount of net income that is not distributed to the stockholders. In other words, retained earnings result from the difference between the net income generated by the company over the years and the amount of net income paid out to stockholders in the form of dividends.
Watson Oil recently reported (in millions) $8,250 of sales, $5,750 of operating costs other than depreciation, and $1,000 of depreciation. The company 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 future sales and cash flows, the firm was required to make $1,250 of capital expenditures on new fixed assets and to invest $300 in net operating working capital. By how much did the firm's net income exceed its free cash flow
Answer:
net income exceeded the free cash flows by $550 million
Explanation:
net income = ($8,250 - $5,750 - $1,000 - $160) x (1 - 35%) = $871 million
net cash flows:
operating activities = $871 + $1,000 - $300 = $1,571
investing activities = ($1,250)
net cash increase during the year = $321 million
net income exceeded the free cash flows by $871 - $321 = $550 million
what a rational firm produce after recruting the forth employee?explain.
Answer:
xxxxxxxxxxxxx
Explanation:
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