A firm has sales of $10,000, EBIT of $3,000, depreciation of $400, and fixed assets increased by $2,000. If the firm's tax rate is 30 percent and there were no increases in net operating working capital, what is the firm's free cash flow

Answers

Answer 1

Answer:

The correct answer is $500

Explanation:

Solution

Given that:

The firm sales =$10,000

EBIT of -= $3000

Depreciation = $400

The firm tax rate is = 30%

Now,

We find the firm's free cash flow which is stated as follows:

The cash flow  (free)= EBIT * (1-t) + depreciation + change in working capital

So,

The firm free cash flow = 3000 * (1-30%) + 400 - 2000

= 2100 + 400- 2000

= $500


Related Questions

Althea Brown contributed equipment, inventory, and $34,000 cash to a partnership. The equipment had a book value of $23,000 and a market value of $29,000. The inventory had a book value of $60,000 but only had a market value of $15,000 due to obsolescence. The partnership also assumed a $12,000 note payable owed by King that was used originally to purchase the equipment. Provide the journal entry for Brown’s contribution to the partnership. 5pts.

Answers

The journal entry for Brown’s contribution to the partnership are:

Dr. Cash 34,000

Dr. Inventory 15,000

Dr. Equipment 29,000

Cr Notes Payable 12,000

Cr Althea Brown, Capital 66,000

For instance, the accompanying effects might be felt on the partner's capital record and outside premise: Commitments to the association - Build the capital record and outside premise. Appropriations: Lessens the capital record and outside premise.

These capital records address the responsibility for the organization by the accomplices. The Accomplices' Capital Record is an Individual record since it was intended for reporting changes connected with accomplices' capital.

Given:

Dr. Cash 34,000

Dr. Inventory 15,000

Dr. Equipment 29,000

         

         Cr Notes Payable 12,000

         Cr Trevor Smith, Capital 66,000

         (78,000-12,000)

Learn more about journal entry:

https://brainly.com/question/20421012

#SPJ1

What happens when borrowers don't repay those loans? Who suffers?
mm

Answers

Answer:

the borrowers they get charged more

The borrowers suffer they are usually charged more

list the major things that need to be kept in mind in industrial management​

Answers

Answer:1.Researching your market or industry is crucial for success

2. A new business requires great commitment and effort

3. Assemble a well rounded team of first rate talents

4. Experienced mentors can help you avoid poor decisions

5. Have a fallback plan for worst сase scenarios

I need a an idea of followership introduction help me!

Answers

Followership refers to the role, behavior, and actions of individuals who are not in a leadership position, but rather, they support and collaborate with their leaders to achieve shared goals. Followership is an essential aspect of organizational success, as it complements leadership and fosters a harmonious work environment.

Effective followers exhibit characteristics such as being proactive, taking responsibility, and engaging in open communication with their leaders. They also possess the ability to think critically and provide valuable feedback for the betterment of the team. By embracing the principles of followership, individuals contribute positively to the overall performance and morale of the organization.

It is important to note that followership does not imply blind obedience or passivity. Instead, it involves active engagement and collaboration with leaders to achieve common objectives. In this dynamic relationship, leaders and followers must work together, learn from each other, and adapt to changing circumstances.

In conclusion, followership is a vital component of successful organizations and plays a significant role in accomplishing shared goals. By cultivating strong followership skills, individuals can effectively support their leaders, enhance team performance, and contribute to the growth and success of the organization.

Know more about Effective followers here:

https://brainly.com/question/30273890

#SPJ11

Supply chain management is less about managing the physical movement of goods and more about managing information. Discuss the implications of this statement.

Answers

Supply chain management and actual distribution make up the distribution process.

What is distribution?

Distribution is the process of delivering goods and services from the producer or manufacturer to the final consumer. It involves a series of activities such as storage, transportation, and marketing that ensure that products are available at the right place and time for customers. Distribution channels vary depending on the nature of the products or services, the target market, and the business strategy. For instance, a company may choose to sell its products directly to consumers through its own outlets or online platforms, or through intermediaries such as wholesalers, retailers, or distributors. Effective distribution is critical for the success of any business, as it ensures that products are delivered efficiently, cost-effectively, and in a way that meets the needs and expectations of customers.

To learn more about distribution, visit:

https://brainly.com/question/30467880

#SPJ1

Imagine that the interest rate on your savings account is 1 percent a year and inflation is 2 percent a year. After one year, would the money in the account buy more than it does today, exactly the same or less than today? Group of answer choices

Answers

Answer:

Explanation:

If the interest rate on the savings account is 1% and the inflation rate is 2%, then the money in the account would buy less than it does today after one year. This is because the inflation rate is higher than the interest rate, which means the value of money is decreasing at a faster rate than it is increasing due to interest. As a result, the purchasing power of the money in the account would be eroded by inflation.

Please help me to solve this question.​

Please help me to solve this question.

Answers

Answer:

the reproduction in which fertilization takes place is called sexual reproduction.

ii . multiple fission

hope it is helpful to you

Complete The Cash Flow Cycle

Complete The Cash Flow Cycle

Answers

Answer:

i think you can do it

Explanation:

sorry

On January 1, Gemstone Company obtained a $165,000, 10-year, 7% installment note from Guarantee Bank. Thenote requires annual payments of $23,492, with the first payment occurring on the last day of the fiscal year. The firstpayment consists of interest of $11,550 and principal repayment of $11,942. The journal entry to record the issuance of the installment note for cash on January 1 would include a:_____

Answers

Answer:

Credit to notes payable for $165000

Explanation:

Journal entries for issuance of Note Payable :

Cash Account ..... Debit $165000

7% Note payable Accounts .... Credit $165000

Note:

Note payable is a liability so it is credited as on date of issuance.

Arrange the steps in shipping and receiving merchandize in the correct order.
1.shipment of goods
2.receiving goods
3.order fulfillment
4.inventory control

Answers

Answer:

3,1,4,2

Explanation:

order fulfilment

shipment of goods

inventory control

receiving goods

The McGee Corporation finds it is necessary to determine its marginal cost of capital. McGee’s current capital structure calls for 45 percent debt, 10 percent preferred stock, and 45 percent common equity. Initially, common equity will be in the form of retained earnings (Ke) and then new common stock (Kn). The costs of the various sources of financing are as follows: debt (after-tax), 5.0 percent; preferred stock, 6.0 percent; retained earnings, 11.0 percent; and new common stock, 12.4 percent.

Answers

The marginal cost of capital for McGee Corporation is 9.96%.

The marginal cost of capital (MCC) is the weighted average cost of the different sources of financing used by a company. To calculate the MCC, we need to determine the cost of each source of financing and its respective weight in the capital structure.

Given information:

Debt (after-tax) cost = 5.0%

Preferred stock cost = 6.0%

Retained earnings cost = 11.0%

New common stock cost = 12.4%

Capital structure weights:

Debt weight = 45%

Preferred stock weight = 10%

Common equity weight = 45%

To calculate the MCC, we multiply the cost of each source of financing by its respective weight and sum them up:

MCC = (Debt weight * Debt cost) + (Preferred stock weight * Preferred stock cost) + (Common equity weight * Retained earnings cost)

MCC = (0.45 * 0.05) + (0.10 * 0.06) + (0.45 * 0.11)

= 0.0225 + 0.006 + 0.0495

= 0.078

However, the common equity portion will also include new common stock (Kn) in addition to retained earnings. To account for this, we need to calculate the cost of new common stock (Kn) based on its cost and weight:

New common stock cost = 12.4%

New common stock weight = Common equity weight - Retained earnings weight

= 0.45 - Retained earnings weight

We don't have the information about the retained earnings weight, so we can't calculate the exact MCC. However, we can make an assumption that the retained earnings weight is equal to the common equity weight, which gives us:

New common stock weight = 0.45 - 0.45

= 0

In this case, the MCC would be:

MCC = (0.45 * 0.05) + (0.10 * 0.06) + (0.45 * 0.11) + (0 * 0.124)

= 0.0225 + 0.006 + 0.0495 + 0

= 0.078

Therefore, the marginal cost of capital for McGee Corporation is 9.96% (rounded to two decimal places).

For more question on marginal cost visit:

https://brainly.com/question/30165613

#SPJ8

A plant asset cost ₤320,000 and is estimated to have a ₤40,000 residual value at the end of its 8-year useful life. The annual depreciation expense recorded for the third year using the double-declining-balance method would be?

Answers

Depreciation is the process of allocating the price of a plant asset to expense in the accounting periods benefiting from its use.

How is the whole depreciation of a plant asset calculated?

Determine the value of the asset. Subtract the estimated salvage price of the asset from the cost of the asset to get the whole depreciable amount. Determine the beneficial lifestyles of the asset. Divide the sum of step (2) by using the wide variety arrived at in step (3) to get the annual depreciation amount.

Depreciation is the technique of allocating to expense the cost of a plant asset over its beneficial (service) existence in a rational and systematic manner. Such cost allocation is designed to desirable in shape prices with revenues.

Learn more about Depreciation here:

https://brainly.com/question/28108679#SPJ1

What will produce more accurate results when giving a survey?
A. Using the word "frequently" in a question
B. Creating face-to-face interviews
C. Adding boxes to check for answers
D. Creating an open questions

Answers

Answer:

Option B; Creating face-to-face interviews

Explanation:

Research has shown that face-to-face interviews tend to produce more accurate results when giving a survey. So the correct answer is option B.

Which of the following will develop a new business in the context of a large organization?

Answers

Intrapreneurs

I hope this helps you
:)

How do early retirement affect on business activity?

Answers

Answer:

Under early retirement, workers who retire early are awarded an early retirement pension, while those who retire at mandatory age receive the full pension. In this setting, early retirement persistently distorts the human capital accumulation decision of the low-ability types, and thus reduces economic growth.

1) Do goods that have secondary packaging influence your purchasing decisions? Why/why not? ​

Answers

Yes the goods that have secondary packaging are able to influence the purchasing decision of a person.

How does packaging influence consumer buying?

The packaging of a product is one of the ways of creating good impression of a product to the would be consumer. The aesthetics of packaging  would leave a positive impression on the person affecting their willingness to go for the product..

what is Secondary packaging?

This refers to the cover of a product. most times this is what we see when we are about buying a product. it is usually colorful and appealing.

When a particular good is well packaged in a good way, some consumers would want to equate its quality packaging to the fact that the good would be one of value. Packaging are intended to be appealing and this will appease the minds of consumers. The consumer end up making the decision of getting goods or products with better secondary packaging.

Read more on purchasing decisions here: https://brainly.com/question/7029808

#SPJ1

Buyers who are aware of Firm’s ___________________ might desire to purchase its products because price no longer remains a limiting factor
1)location
2)prestige
3)competition
whixh one is correct

Answers

Answer:

2) prestige.

Explanation:

Buyers who are aware of Firm’s prestige might desire to purchase its products because price no longer remains a limiting factor.

a plan that will enable an organization to make the best use of its resources to meet its objectives is called a​

Answers

Answer:Marketing strategy

Explanation:

A marketing strategy refers to a business's entire game plan containing its value proposition  that enables it meet its objectives by optimizing its resources which include strategizing for the best of its products, its price,distribution and promotion in a sustainable competitive advantage all geared at gaining prospective consumers and maintaining them as constant customers of its goods or services.

How can a hotel sales representative identify who is
responsible for purchasing meeting space, banquets,
and rooms for corporate travelers in the corporate
headquarters of an insurance company?

Answers

They accomplish this through lobbying the groups in the market and meeting with the groups that the hotels appear to.

Briefing:-

The dissection might have a convention service branch in addition to the sales function. The information about sales groups visiting the hotel is covered in this section. Convention services would take care of the group's "external" needs, booking requirements, catering needs, and meeting preparations. The hotel sales representative looks after the lodging establishment's needs for promotion and the information obtained from market research. Questions about airfare should be addressed to the sales agent for lodging facilities.

What does marketing lobbying mean?

As was already noted, a lobby is a collection of people or businesses that exerts pressure on public officials. Additionally, it refers to the endeavor to exert influence over others.

To Know more about convention

https://brainly.com/question/5248113

#SPJ9

The political candidates keep talking to the citizens about the possibility of a recession what would most likely happen if a country experience a recession

Answers

The thing that would MOST likely happen in this case if a country experiences a recession is D.Businesses will suffer from decreased sales and profits, eventually leading to closure

What is recession ?

Recession, in economics,  can be described as the downward trend in the business cycle.

Itshouldbe nopted that this can be seen as the decline in production and employment,  whereby the incomes and spending of households to decline and as a result of thisthere would be hunger sa well as hardship in the country for this cause.

Learn more about   recession  at:

https://brainly.com/question/21139689

#SPJ1

missig part

What would MOST likely happen if a country experiences a recession?

A.

Feeling confident in the economy, people will begin to spend money more freely.

B.

Jobs will be more plentiful, and companies will be doing a lot of hiring.

C.

Families will start to purchase larger and more expensive homes.

D.

Businesses will suffer from decreased sales and profits, eventually leading to

Which of the following statement is TRUE?

(1 Point)

Developmental programs improve conceptual skills of managers for the future job.

Training programs improve conceptual skills of nonmanagers for the future job.

Developmental programs improve technical skills of nonmanagers for the current job.

Training programs improve technical skills of mangers for the current job.

Answers

'Developmental programs improve conceptual skills of managers for the future job' is true. The right answer is a.

The goals and content of training and development are different from one another. While "development" refers to a long-term method through which managerial personnel understand conceptual and theoretical knowledge for broad reasons, "training" is a short-term process through which non-managerial personnel acquire technical knowledge and skills for a specific purpose.

Development covers the process through which managers and executives build capacity for both future managing roles as well as skills and competence for their current ones.

The correct answer is option a.

Know more about conceptual skills here

https://brainly.com/question/30691677

#SPJ1

purchase goods worth rs 20000 from Shyam on credit and paid 50% in cash​

Answers

Answer:

Purchases a/c dr 20000

To cash a/c 15000

To Ram's a/c 5000

How can apprenticeships become more popular in the United States?

A.The government can provide funding for apprenticeship programs.
B. Corporations can offer paid positions to workers who learn new skills while working toward full-time employment.
C.People who do not want to attend college but would prefer to learn a trade like welding can look into programs, organizations, or educational institutions offering apprenticeships.
D.All of the choices are correct.

Answers

Apprenticeships can become popular in the United States in the following ways:

D. All of the choices are correct.

What is an Apprenticeship?

An apprenticeship is a compensated position that allows the person to study and gain useful experience. Apprenticeship is a method for educating a new generation of practitioners of a trade or profession through on-the-job training and, in certain cases, formal education (classroom work and reading).  Apprenticeships can also help practitioners get a license to work in a regulated occupation. The majority of their training is completed while working for an employer who assists apprentices in learning their trade or profession in exchange for continuous labor for an agreed-upon term after they have demonstrated demonstrable competencies.

Learn more about Apprenticeship at:

https://brainly.com/question/24194929

#SPJ1

Click this link to view O-NET's Work Styles section for Registered Nurses. Note that common work styles are listed
toward the top and less common work styles are listed toward the bottom. According to O*NET, what are common
work styles needed by Registered Nurses? Check all that apply.
dependability
artistry
prevention
integrity
concern for others
stress tolerance

Answers

Answer:

dependability

integrity

concern for others

stress tolerance

Explanation:

there u go

O-NET's Work Styles common work styles needed by Registered Nurses are the dependability, integrity, concern for others, and stress tolerance. Thus, option (a), (d), (e) and (f) is correct.

What is O-NET's Work Styles?

The term O-NET's Work Styles refers to the work perform on the working place. It was the included the achievement efforts, initiative, persistence, detail-oriented and supportive. It was the every business are the follow the O-NET's Work Styles of the work as completing the project.

O-NET's Work Styles common work styles was the required on the Registered Nurses. It was the common work style was the included such as dependability, concern for others, stress tolerance, and the integrity. It was also included that the detail-oriented and the idea-oriented.

As a result, the conclusion of the O-NET's Work Style's common work styles are the aforementioned. Therefore, option (a), (d), (e) and (f) is correct.

Learn more about on O-NET's Work Styles, here:

https://brainly.com/question/30385109

#SPJ7

Job destroyer? ~ The Wellcome Global Monitor is the world’s largest study into how people around the world think and feel about science and major health challenges. The battle between man and machines goes back centuries. Are they taking our jobs? Or are they merely easing our workload? According to the article in The Guardian titled "Technology has created more jobs than it has destroyed, says 140 years of data", a study by economists at the consultancy firm Deloitte concluded that rather than destroying jobs, technology has been a "great job-creating machine". The article further states that machines will take on more repetitive and laborious tasks but seem no closer to eliminating the need for human labor than at any time in the last 150 years.

Answers

Para o de inglês para comer de inglês para comer para

Incorrect
Question 3
0/5 pts
(01.01 MC)
Tina just completed a science degree and wants to continue on to medical
school. What can she expect?
-Her earnings potential may decrease.
-Her potential expenses may decrease
-Her earnings potential may increase.
-Her potential wants may decrease.

Answers

Answer:

Her earning potential may INCREASE

Explanation:

Tina just completed a science degree and wants to continue to medical school. Her earnings potential may increase. Hence, option C is appropriate.

What is the earnings potential?

Earning potential is the phrase used to describe the potential profits that shareholders may realize from holding a company, including dividend payments but also capital growth. In plenty of other words, it displays the most profit that a business may get. The manner of dividends is frequently distributed to investors.

The formula can also be thought of as predicted revenue with fewer expenses equaling profit potential. Gross margin %, also known as the ratio of profit to sales, is a metric that businesses use to assess the profitability of various products.

Let's start with the definition of earning potential (income potential): this is the sum of money you should be able to accumulate throughout a certain period. In other regards, this is a reference to your potential for financial gain.

Hence, option C is correct.

Learn more about the Earnings Potential here:

https://brainly.com/question/29644125

#SPJ2

Suppose that $2000 is invested at a rate of 4%, compounded semiannually. Assuming that no withdrawals are made, find the total amount after 7 years.
Do not round any intermediate computations, and round your answer to the nearest cent.

Answers

Assume that $2,000 is saved at a 4% yearly compounding rate. Find the total after $2437.99 assuming no withdrawals are made.

What's an illustration of assuming?

I was startled when he did not arrive because I had believed he would. She inferred that he was perplexed based on his demeanor. We'll show around around noon. Providing our flight leaves on schedule, that is

What is the use of assuming?

In order to think out the implications of a potential occurrence or event, you employ assumption. If you're right, there wasn't much I have to do about it, he said.

Briefing

A = P(1+r/n)^ nt

A = 2000(1+.04/2)^(5*2)

A = 2000(1.02) =$2437.99

To know more about assuming visit:

brainly.com/question/14860111

#SPJ4

Question 6 of 10
One advantage of a long-term loan compared to a short-term loan is that a
long-term loan
A. does not require the borrower to have a good credit score,
B. can be paid off in full without the borrower paying any interest.
C. allows a person to borrow more money at a lower interest rate,
D. does not force the borrower to make payments every month,
SUBMIT

Answers

One advantage of a long-term loan compared to a short-term loan is that a long-term loan allows a person to borrow more money at a lower interest rate. Long-term loans typically have a longer repayment period, which spreads out the principal amount over a greater number of months or years.OPtion c

As a result, the monthly payments are lower compared to a short-term loan. This lower monthly payment makes it easier for individuals to manage their finances and allocate funds towards other expenses'Additionally, long-term loans often come with lower interest rates compared to short-term loans. Lenders are more willing to offer competitive interest rates for long-term loans because they have a longer period to earn interest on the loan.

This allows borrowers to save money in interest payments over the life of the loan.In summary, a long-term loan provides the advantage of enabling individuals to borrow more money while enjoying lower monthly payments and favorable interest rates.

It offers greater flexibility and affordability, making it an attractive option for those who require a larger loan amount and prefer a longer repayment period.Option c

For more such questions on loan

https://brainly.com/question/29529020

#SPJ11

what is the consequence of inflation and unemployment in Ethiopia recent .​

Answers

Answer:

Unemployment results in a waste of economic resources such as the productive labor force and thereby affect the long run growth potential of the economy.

On the last day of its current tax year, Buy Rite LLC received $390,000 when it sold a machine it had purchased for $270,000 three years ago to use in its business. At the time of the sale, the basis in the equipment had been reduced to $230,000 due to tax depreciation taken. How much did the members’ self-employment earnings from Buy Rite increase when the equipment was sold? [Hint: See IRC §1402(a)(3).]

Answers

Answer:

1,402

Explanation:

Other Questions
Your friend tells you she is going to drive your group of friends to a party. Youagree to go along. Which of the following steps will best help you plan a safetrip for the group?O A. Discussing how much fun you will have at the partyO B. Discussing the rules you think all drivers should followO C. Discussing how you always drive above the speed limitD. Discussing how you feel about road trips Question 13 (1 point)SavedGiven the following definitions:U= (a, b, c, d, e, f, g)A = {a, c, e, g)B = (a, b, c, d]Find A U B' how do i do this math problem? PLEASE HELP ILL GIVE BRAINLISY!Write a sentence using LLEVAR the clothing and the correct form of the color. what invention directly led to the production of inexpensive dime novels? larry and belinda are married and larry suspects that he is not the father of their baby daughter. the baby has wet earwax. both larry and belinda have dry earwax. does larry have good reason to be suspicious? Two trains, Train A and Train B, weigh a total of 389 tons. Train A is heavier than Train B. The difference of their weights is 263 tons. What is the weight of each train? Equation 1: ____________ Equation 2: ___________ Train A weight: ________ Train B weight: ________ Write story having the thems God made a countey and man made the town ken places a $100,000 bet on the outcome of the national college football championship game with ted, a well-known bookmaker. ken loses the wager. jeremy, a police officer assigned to the vice squad, learns of the illegal wager. if jeremy decides to file criminal charges against ken and ted, jeremy should remember that: What motif is used in the first line of the haiku?lighttimebirdsloneliness It Is 14.8 Miles From Cedarloo To Rapid City To Carlsville It Is 32.3 Miles. How Much Farther Is It From Rapid City To Carlsville? Subtract 9x + 2 from 2x -7 Order of Operation 22-8+2-5+2 What did William Samuel Johnson believe in? A company donated a box of yellow, purple, and green water bottles for a school field day. The box contained 750 yellow water bottles. This represented 30% of the total number of water bottles donated. What was the total number of water bottles donated?Please help TwT Find 250% of 18. Show your work or explain how you arrived at your answer.Please keep the explanation simple summary of hidden figures chapter number 5 how much of the sprint backlog must be defined in the sprint planning event The change shown in the photo involves which two energy transformations?A. Chemical energy -> electromagnetic energyB. Thermal energy -> electrical energyC. Chemical energy -> thermal energyD. Thermal energy -> chemical energy I'LL GIVE BRAINILIST IF RIGHT Amelia makes a Venn diagram to compare the advantages and disadvantages of asexual reproduction and sexual reproduction.Which label belongs in the region marked X?Less competition for resourcesFasterNo variation in DNALess energy required