____ analysis involves studying various market parameters in order to predict future price movements of stock.

In each of the following cases, calculate the accounting break-even and the cash break-even points. Ignore any tax effects in ca

Sloan [31]

Answer:

Accounting Break-Even

Case 1 = $14,350 Case 2 = $8,485.71 Case 3 = $214.375

Cash Break-Even

Case 1 = $11,766.67 Case 2 = $1342.86 Case 3 = $168.75

Explanation:

According to the scenario, computation of the given data are as follow:-

Accounting Break-Even = (Fixed Cost + Depreciation Cost) ÷ (Price Unit -Variable Unit)

Case 1 - ($7,060,000 + $1,550,000) ÷ ($3075 - $2,475)

= $8,610,000 ÷ $600

= $14,350

Case 2 - ( $47,000 + $250,000) ÷ ($96 - $61)

= $297,000 ÷ 35 = $8,485.71

Case 3 - ($2,700 + $730) ÷ ($21 - $5)

= $3,430 ÷ $16 = $214.375

Cash Break Even = Fixed Cost ÷ (Price Unit - Variable Unit)

Case 1 - $7,060,000 ÷ ($3075 - $2,475)

= $7,060,000 ÷ $600

= $11,766.67

Case 2 - $47,000 ÷ ($96 - $61)

= $47,000 ÷ $35 = $1342.86

Case 3 - $2,700 ÷ ($21 - $5)

= $2,700 ÷ $16 = $168.75

6 0

1 year ago

During February 2015 its first month of operations, the stockholders of Ariel Pink Enterprises invested cash of $50,000. Ariel h

aleksandrvk [35]

Answer:

46,000 ending cash balance

Explanation:

50,000 Ariel Investment

+ 10,000 cash revenues

- 14,000 cash expenses

46,000 ending cash balance

(assuming no other transaction impacted the cash account)

When you are asked for a ending value, you should identify first, if there is a beginning value, something which start the balance of the account.

Like inventory in hand, supplies in hand, equipment, accounts payable

Then you have to figure out which trasnaction incresae the balance

and which decrease it.

<u>Finally you put them together:</u>

<em>beginning + increase - decrease = ending</em>

4 0

2 years ago

Webster's has sales of $649,000 and a profit margin of 7.2 percent. the annual depreciation expense is $102,600. what is the amo

Dimas [21]

Operating cash flow = ($649,000 x .072) + $102,600 = $149,328. In financial accounting, operating cash flow or as called as OCF in which cash flow provided by operations, cash flow from operating activities or as called as CFO or free cash flow from operations or as called as FCFO bring up to the sum of cash a company produces from the revenues it brings in not including costs related with long-term investment on capital items.

7 0

2 years ago

When you receive a vertical promotion, you are more likely to _______ than when you receive a horizontal promotion.

zepelin [54]

The answer is C hope it helps

7 0

2 years ago

Read 2 more answers

An investment project has annual cash inflows of $4,200, $5,300, $6,100, and $7,400, and a discount rate of 14 percent. If the i

Eva8 [605]

Answer:

An investment project has annual cash inflows of $4,200, $5,300, $6,100, and $7,400, and a discount rate of 14 percent. If the initial cost is $7,000, the discounted payback period for these cash flows is ___2_____ years. If the initial cost is $10,000, the discounted payback period for these cash flows is___3____years. If the initial cost is $13,000, the discounted payback period for these cash flows is__4_____years. (Round your answers to 2 decimal places. (e.g., 32.16))

Explanation:

a) Data and Calculations:

Annual cash inflows of

Cash Inflow Discount Factor PV Running Total

Year 1 $4,200 0.877 $3,683.40 $3,683.40

Year 2 $5,300 0.769 4,075.70 7,759.10

Year 3 $6,100 0.675 4,117.50 11,876.60

Year 4 $7,400 0.592 4,380.80 16,257.40

b) An investment project's discounted payback period is the number of years it takes for an investment to recover its costs. It is the period when the project's discounted cash inflows equals the project's discounted cash outflows. It is another version of the payback period that uses discounted cash flows.

3 0

2 years ago