nvestment center's after-tax operating profit P 50,000 nvestment center's total assets nvestment center's current liabilities Weighted-average cost of capital 800,000 80,000 6.5% What is the economic value added (EVA)? O P 3,200 O P50,000 O P 6,000 O P60,000
Q: What is venture capital?
A: Capital refers to a company's assets and cash. Cash, equipment, receivable accounts, property, or…
Q: Pearl company acquired 80% of Coral company on January 1, 2020. On December 2021 Pearl reported…
A:
Q: Pharoah Corp. has collected the following data concerning its maintenance costs for the past 6…
A: Highest activity = 48,200 units Lowest activity = 21,700 units
Q: Deductions (Obj. 3) Use the knowledge you have acquired from Chapters 1 through 6 to identify the…
A: AGI termed as Adjusted gross income which refers to the gross income by deducting the adjustments to…
Q: Required: Preparea multiple-step income statement for the month of March by completing the following…
A: Solution:- Calculation of multiple income statement as follows under:-
Q: 1b) You are given the following budgeted information for İsca Ltd direct wages 45000 direct…
A: Job costing is a way of accounting that allows you to keep track of the costs of different projects…
Q: Exercise 4 The balance sheet of the Jody, Kane, and Lark partnership on May 1, 2016 (before…
A: Introduction Partnership is the association of two or more persons who have agreed to share their…
Q: Explain how cost-benefit analysis might be used to judge the viability of an economic decision and…
A: Answer Introduction Cost benefit analysis The cost benefit analysis is a analytical…
Q: 1. Mr. J. Cruz is the owner of a small variety store. His gross sales la any one year do not exceed…
A: The percentage tax due is : 450,000*.03% = 13,500 ( Merchandise Inventory and Purchases from…
Q: Flint Company is preparing its direct labor budget for 2022 from the following production budget…
A: Direct labor budget = Budgeted hours required for production x wages rate per hour where, Budgeted…
Q: _______ This statement reveals the financial position of the firm.
A: A balance sheet is a financial statement that displays a corporation's assets, liabilities, and…
Q: There has been a sharp increase in the emergence of financial technology firms (also known as…
A: An auditor is someone who verifies the accuracy of documented business transactions. Auditors are…
Q: Shown below is the activity for one of the products of Random Creations: January 1 balance, 80 units…
A: Inventory valuation is based on the flow of exemption used by the company. There are many methods…
Q: Non-Resident Alien
A: Ms. Camellia is non resident alien . It means she was in Phillipines for more…
Q: Cameron Co. established a $182 petty cash fund on January 1, 2020. One week later, on January 8, the…
A: Petty Cash Fund: It is common for small businesses to keep a modest amount of money on hand (for…
Q: The Constructing Department of MEC Company had 2,600 units in work in process at the beginning of…
A:
Q: justment for the 30. Total charges onth of Sentemb
A: Collection ratio = 365 / debtor turnover ratio
Q: Question 1 A company produces a single product called the Fidget. The following information relating…
A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…
Q: Sales Var. cost of goods sold Fixed manufacturing costs Variable selling Fixed admin. (50%…
A: Return on investment is ratio between the Net Income and Cost of investment. It is measured in…
Q: . Evaluate each of the items a through e and prepare the journal entry that should be made to record…
A: On January 1, 2021, Stewart Corp. acquires a small local company Miller Inc. for $500,000 cash. Let…
Q: Presented here are selected transactions of Palmer Company. Palmer sells in large quantities to…
A: Working Note: Amount received from Grey Company = (Sales - sales return) x (1 - discount rate) =…
Q: Selected current year-end financial statements of Genesis Corporation follow. All sales were on…
A: A series of high-level reports that describe a company's monetary performance, financial position,…
Q: Book credit error of current month corrected in the same month shall be: Group of answer choices…
A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…
Q: Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is…
A: Straight Line Method is a method where the Depreciable cost of an Assets is charged uniformly over…
Q: Cotton Company has the following balance sheets and retained earnings statements: 2022…
A:
Q: A corporation has a taxable income of $2,302,253. At this income level, the federal income rate is…
A: Given data:- Federal income tax rate=49%state tax rate=20%Local tax rate=13%Total taxable income -…
Q: Question 1 A company produces a single product called the Fidget. The following information relating…
A: Sales value required to earn desired profit=Fixed Cost+Desired Profit before taxContribution margin…
Q: The amortization of a premium on bonds payable Group of answer choices increases the carrying amount…
A: Bonds are one of the sources of finance for the company. These are issued at a fixed rate of…
Q: nsport of cargoes 6,000,000Sale of goods during travels 1,000,000How much is the estimated average…
A: Business tax refers to the taxes a business needs to pay the authoritative government as it…
Q: An asset was purchased 7 years ago for $10000. It was estimated to have a 10 year service life and a…
A: Depreciation rate under Declining Balance Method = 1/Useful life = 1/10 = 10%
Q: Required: A. Analyze the transactions using the following accounts and provide a money column for…
A: The accounting equation shows the equality between the company's total assets and total liabilities…
Q: A report by the Government ACcountability Office (GAO) shows that the GAO expect U.S. Postal Service…
A: Losses will go on increasing if the proper measures are not taken at the proper time so there is…
Q: An auditor reads management's commentary included in a county's comprehensive annual financial…
A: Ans. In the above case mentioned, the auditor determines that the financial statements do not…
Q: Following particulars have been obtained from the accounts of a company. i) Remuneration of Managing…
A: Net profit for calculation of managerial remuneration is calculated by adjusting all the items…
Q: What is the company's ROA? Denver, Incorporated, has sales of $27 million, total assets of $24.9…
A: Formula: ROA = ( Net profit / Total Assets ) x 100
Q: Cash, Php19,000; Prepaid Rent, Php500, Equipment, Php5,000 and Accounts Payable Php2.000. By the end…
A: Net Income is the difference between Total Revenues and Total Expenses. Formula: Net Income =…
Q: g skills regarding screening and preference methods to decide on the best system for the company.…
A: Introduction: The time value of money states that the value of today's dollar in more than the value…
Q: Daley Company prepared the following aging of receivables analysis at December 31. Total Days…
A: Under ageing of accounts receivable method, estimated balance of Allowance for Doubtful Accounts is…
Q: c. What will the balance sheet look like after the dividends are paid? (Do not round intermediate…
A: Introduction: A balance sheet is a financial statement that conveys an organization's "book value,"…
Q: 2. Grouse, Flicker, and Partridge are partners sharing profits and losses 20/40/40 respectively.…
A: Liquidation- Liquidation is the process of converting non-liquid assets to liquid assets...that is,…
Q: Turn to Stone, Inc. manufactures statues of pop culture icons. All statues are the same size and…
A: Higher (lower) actual direct material cost per statue = Actual direct material cost per statue -…
Q: At least vehicles per day must use the intersection to justify the second system. (Round up to the…
A: A costing system is a method that is designed for monitoring the costs which are incurred by the…
Q: Sharon is single, She owns a Florist Shop, She had health insurance coverage for the entire year.…
A: SECA or Self Employment tax Act is a system that ensures that those people engaged in the…
Q: A company is trying to decide which product to manufacture. The following information is available:…
A: Product Making Decision: As a rule, product managers use a mix of three types of information when…
Q: Cobb Co. can further process Product X to produce Product Y. Product X is currently selling for $30…
A: Using differential costing we will take decisions for a new proposal and it will compare additional…
Q: Macmod sold 2,000 shares of his investment in stock eCare. The sale is made through the Philippine…
A: Percentage tax rate is the tax rate which is applied only on the specific transactions which has…
Q: On January 1, 2020, Johny Industries issued ten-year bonds with a face value of $2,000,000 and a…
A: The bonds are the financial instruments for the business which are used to raise money from the…
Q: Organic Food Company's Cash account shows a $7,500 debit balance and its bank statement shows $6,560…
A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…
Q: g retirement had $1.6 million in his ir d his portfolio to decrease to only 559 ras able to invest…
A: To find the years using the values as,
Q: 8. Syringe pumps often fail because reagents adhere to the ceramic piston and deteriorate the seal.…
A: Interest Rate- Interest rates are the fees charged to borrowers for borrowing assets from lenders.…
p3-10
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are expected to be 75% of sales, and depreciation is expected to be 1.5 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Berndts federal-plus-state tax rate is 40%. Berndt has no debt. a. Set up an income statement. What is Berndts expected net income? Its expected net cash flow? b. Suppose Congress changed the tax laws so that Berndts depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and to net cash flow? c. Now suppose that Congress changed the tax laws such that, instead of doubling Berndts depreciation, it was reduced by 50%. How would profit and net cash flow be affected? d. If this were your company, would you prefer Congress to cause your depreciation expense to be doubled or halved? Why?The income statement comparison for Rush Delivery Company shows the income statement for the current and prior year. A. Determine the operating income (loss) (dollars) for each year. B. Determine the operating income (percentage) for each year. C. The company made a strategic decision to invest in additional assets in the current year. These amounts are provided. Using the total assets amounts as the investment base, calculate the ROI. Was the decision to invest additional assets in the company successful? Explain. D. Assuming an 8% cost of capital, calculate the RI for each year. Explain how this compares to your findings in part C.The table below shows the profit after tax and the book value of investment for threeprojects A, B, and CProjectAProjectBProjectCProjectAProjectB ProjectCYear 1 400,000 300,000 250,000 1,500,000 1,200,000 1,000,000Year 2 450,000 450,000 300,000 1,350,000 1,080,000 900,000Year 3 500,000 500,000 400,000 1,215,000 972,000 810,000Year 4 450,000 550,000 500,000 1,093,500 874,800 729,000Year 5 - 500,000 300,000 - 787,320 656,100Year 6 - - 250,000 - - 590,000Required: b. State and briefly explain FIVE advantages and disadvantages of payback periodin project appraisa
- Refer to the following financial information of Scholz Company: NOPAT 8,250,000.00 EBITDA 17,725,000.00 Net Income 5,050,000.00 Capital Expenditures 6,820,000.00 After tax capital costs 6,280,000.00 Tax rate 40% Calculate the Company’s depreciation and amortization expense Refer to the following financial information of Scholz Company: NOPAT 8,250,000.00 EBITDA 17,725,000.00 Net Income 5,050,000.00 Capital Expenditures 6,820,000.00 After tax capital costs 6,280,000.00 Tax rate 40% 13. Calculate the Company’s depreciation and amortization expense 14. Refer to Scholz Company, calculate its interest expense. Use 2 decimal places for your final answer. 15. Refer to Scholz Company, calculate its…Refer to the following financial information of Scholz Company: NOPAT 8,250,000.00 EBITDA 17,725,000.00 Net Income 5,050,000.00 Capital Expenditures 6,820,000.00 After tax capital costs 6,280,000.00 Tax rate 40% Calculate the Company’s depreciation and amortization expenseThe following information relates to Maine, Inc.: Total assets P9,000,000 After-tax operating income 1,500,000 Current liabilities 800,000 If the company has a 10% weighted-average cost of capital, its economic value added would be:
- Assume the following data for U&P Company: Debt (D) = $100 million; Equity (E) = $300 million; rD = 6%; rE = 12%; and TC = 30%. Calculate the after-tax weighted average cost of capital (WACC): Multiple Choice A) 10.5% B) 10.05% C) 15% D) 9.45%Refer to the following financial information of Scholz Company: NOPAT 8.250.000.00 EBITDA 17,725.000.00 Net Income 5,050,000.00 Capital Expenditures 6,820,000.00 After tax capital costs 6,280.000.00 Tax rate 40% 1. Calculate the Company's depreciation and amortization expense 2. calculate its interest expense. Use 2 decimal places for your final answer. 3. calculate its EVA. Use 2 decimal places for your final answer.The figures shown in the table below are an extract from the accounts of Ridgeway (capital employed is$1.5m).$Revenue 1,000,000Cost of sales 400,000Gross profit 600,000Distribution expenses and administration cost 300,000Profit before interest and tax 300,000Finance cost 50,000Profit before tax 250,000Income tax expense 100,000Profit after tax 150,000What is the return on capital employed (ROCE)?
- You have been asked by an investor to compute for the Economic Value Added of the companies he is considering to invest into as follows: E V A Net Investment 55,000,000 60,000,000 70,000,000 WACC 8% 9% 10% Net Income after Tax 3,510,000 2,750,000 5,230,0000 Net Operating Income After Tax 4,550,000 5,450,000 6,850,000 Which Company under consideration has the highest EVA Which companies would you recommend for investment, Why? What is the EVA of each companies under consideration?The following is available for Golden Corporation for 2019: Sales 2,000,000 Average invested capital (assets) 500,000 Net income 300,000 Cost of capital 18% What is the return on investment for Golden Corp.? 15% 18% 33% 60% Group of answer choices 1 2 3 4Free Inc. has after tax operating income of $100 million. It is depreciation is $20million. The capital expenditure is $50million. Its NWC increase for $30 million, the excess cash increases for $5 million, and note payable decreases $1 million. What is the firm's free cash flow during the fiscal year in consideration (in million)? a)45 b)44 c)46 d)48
