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sertanlavr [38]
2 years ago
14

Champagne, inc., had revenues of $12 million, cash operating expenses of $8 million, and depreciation and amortization of $1.5 m

illion during 2008. the firm purchased $700,000 of equipment during the year while increasing its inventory by $500,000 (with no corresponding increase in current liabilities). the marginal tax rate for champagne is 30 percent. free cash flow: what is champagne's free cash flow for 2008? $4,000,000 $3,250,000 $2,050,000 $2,500,000
Business
1 answer:
Hoochie [10]2 years ago
4 0

The free cash flow can be calculated as below:

Revenue 12000000

Less: Expense (8000000)

Less: Depreciation (1500000)

Earnings Before Tax 2500000

Less Tax (750000)

Earnings after tax 1750000

Add Depreciation 1500000

Total Cash Earnings 3250000

Less: Change in Working Capital (500000)

Less : Purchase of Asset (700000)

Free Cash Flow 2050000

Thus Free Cash Flow can be calculated as above.

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In early November, department stores like Robinsons-May begin to prepare for upcoming holiday sales. Retail stores often make 25
Burka [1]

Answer:

Motivation

Explanation:

Motivation in an organization is a process of e<u>ncouraging employees to perform at higher levels and thereby increase productivity, to increase the chances of the organization achieving its goals and making more profit</u>.

Nancy Cardigan, the General Manager of Robinsons-May, intends to incite her sales associates and get them excited about the upcoming holiday season that comes with an opportunity for increased sales. Therefore she calls a meeting with a purpose of motivating them.

5 0
2 years ago
Tano Company issues bonds with a par value of $82,000 on January 1, 2020. The bonds' annual contract rate is 7%, and interest is
weqwewe [10]

Answer: $2151

Explanation:

The amount of the discount on these bonds at issuance will be the difference between the par value of the bond issues by Tank company and the price at which the bonds were sold. This will be:

= $82000 - $79,849

= $2151

Therefore, the amount of the discount on these bonds at issuance is $2151.

3 0
1 year ago
Your supervisor has come to you with the following list of expenditures for the year and is asking you whether they should be ca
Trava [24]

Answer:

Capitalized Expenditures:

2. Added a new wing onto the office building.

5. Had an engine rebuilt in one of their fleet cars.

Explanation:

Capitalization is the process of delaying the full recognition of an expense for the acquisition of a new asset with long-term life so that the costs can be treated as an expense gradually over its useful life through an accounting method known as depreciation or amortization.

The criteria for capitalizing expenditure depend on whether the expenditure is necessary to bring the asset to the condition and location where it can be operated as desired by the management.  It must also meet the threshold amount set by management for capitalization.  This is because some assets can be used for more than one year and still they are not regarded as capital assets.  Example is a stapling machine that costs less than a dollar.

6 0
2 years ago
Gamma, Inc. has struggled for industry dominance with Ardent, Inc. its main competitor, for years. Gamma has gathered and analyz
Len [333]

Answer:

Casual Ambiguity

Explanation:

Based on the information provided within the question it is most likely that the source of Ardent's success is Casual Ambiguity. This refers to the situation where it is nearly impossible to relate the effects of something to its initial states or causes. Such as Ardent's ability to acquire so much success or a competitive advantage over its competitors. This also occurs with the development of the prices of shares, options, futures, and similar products on exchanges

5 0
1 year ago
Which of the following best describes costs assigned to the product under the variable costing method? Direct labor (DL) Direct
masya89 [10]

Answer:

DL, DM, and VOH.

Explanation:

Under the variable costing method, direct labor cost, direct material cost and variable manufacturing overhead cost are cost assigned to the product. administrative, fixed manufacturing overhead cost are not variable cost and hence cannot be assigned to a product under variable costing method. Variable costing methods considers only manufacturing costs that change in total with changes in production level.

3 0
1 year ago
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