Financial update as of June 15 • Your existing business generates $135,000 in EBIT. • The corporate tax rate applicable to your business is 25%. • The depreciation expense reported in the financial statements is $25,714. • You don’t need to spend any money for new equipment in your existing cafés; however, you do need $20,250 of additional cash. • You also need to purchase $10,800 in additional supplies—such as tableclothes and napkins, and more formal tableware—on credit. • It is also estimated that your accruals, including taxes and wages payable, will increase by $6,750. Based on your evaluation you have______in free cash flow.

Financial update as of June 15 • Your existing business generates $135,000 in EBIT. • The corporate tax rate applicable to your business is 25%. • The depreciation expense reported in the financial statements is $25,714. • You don’t need to spend any money for new equipment in your existing cafés; however, you do need $20,250 of additional cash. • You also need to purchase $10,800 in additional supplies—such as tableclothes and napkins, and more formal tableware—on credit. • It is also estimated that your accruals, including taxes and wages payable, will increase by $6,750. Based on your evaluation you have______in free cash flow.

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter6: Managing Cash Flow

Section: Chapter Questions

Problem 13SEP

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Record the following transactions: Date Description Sept 1 You contributed $20,000 cash into your business. You also borrowed $15,000 from Bankwest. This bank loan is a 2-year secured business loan, with an interest rate of 6% per annum, and monthly repayments of $540. The first instalment is due on 25 September 2022 You purchased a computer at a cost of $1,980 incl. GST for cash. Computer has a useful life of two years. It is depreciated using a diminishing balance method at a rate of 25% and a residual value of $562.50 You purchased 30 car seats from Baby Essentials on credit. You promised to pay your liability in 30 days Sept 4 You purchased 15 prams from Kids Brands on credit. You promised to pay your liability in 45 days Sept 2 Sept 3 Sept 5 Sept 6 Sept 7 Sept 25 You returned one car seat to Baby Essentials, and you received credit You sold 15 car seats to Baby Gear for cash You sold 8 prams to Baby Gear for cash You paid the first instalment due on the bank loan Sept 30 You…
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Question: How much is the income or loss after tax for 2021? Kindly prepare a good presentation of your computation. The store opened on January 01, 2021 and had total sales for the 1st month of Php 300,000.00. Corresponding increase in sales of 10% was realized for the remaining months of the 1st quarter. Second quarter sales were the same as the 1stquarter, corresponding 5% increase for the 3rd quarter, and 4thquarter sales is the same as the 1st quarter. The company had a miscellaneous income for the year of Php 50,000.00 but it seems that it has no effect on its financial since they also incurred the same amount for the spoilages, considered as other expense. Let us assume that the annual tax percentage will be 12%. Sales breakdown is: 70% from the beverages and the remaining percentage for the pastry line. Total investment of Ms. Cortesi amounted to Php1.5M and she is expecting the Payback Period on the 3rd year. Renovation cost of the rented space of the store amounted to Php…
Calculating Fees on a Loan Commitment During the last year you have had a loan commitment from your bank to fund inventory purchases for your small business. The total loan available was $1,120,000, of which you took down $870,000. It is now the end of the loan commitment period and your bank is asking you to pay the back-end fees. You have misplaced the paperwork that listed the terms of the commitment, but you know you paid total fees (this does not include any interest paid to borrow the $870,000) of $5,110 on this loan commitment. You remember that the up-front fee was 30 basis points, what is the back-end fee on this loan commitment.
See if you can determine the amount of Bluebird State Bank’s current net income after taxes from the figures below (stated in millions of dollars) and the amount of its retained earnings from current income that it will be able to reinvest in the bank. (Be sure to arrange all the figures given in correct sequence to derive the bank’s report of income). Effective tax rate 28% Interest on loans $90 Employee wages, salaries, and benefits 13 Interest earned on government bonds and notes 9 Provision for loan losses 5 Overhead expenses 3 Service charges paid by depositors 3 Security gains/losses -7 Interest paid on federal funds purchased 5 Payment of dividends of $4 per share on 1 million outstanding shares to be made to common stockholders Interest paid to customers holding time and savings deposits 40 Trust department fees 3
Acme Bank: Net profit after taxes = $10 million Assets = 200 ROE = 20% For the following show your calculations of how you arrived at your answer. a. Find ROA b. Find bank capital c. For each dollar of assets acquired by the bank, how much did the owners of the bank use of their own money
Please answer this question correctly ASAP. Thank you.
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find the gross profit, general and administrative expenses, operating expenses
NOTE: STRICTLY USE THE GIVEN FORMULA IN THE PHOTO ATTACHED 1. How much must a man deposit in a bank that pays 7% compounded annually so that after 10 years he will have P3,000,000 2. How much must a corporation deposit in a bank which credits interest at 12% compounded monthly to come up in 8 years with P2,500,000 needed for its expansion program? 3. In purchasing of house, a man makes P720,000 down payment and agrees to pay P1,200,000 5 years later. Find the cash value of the house if money is worth 14% compounded semi-annually. 4. On the birth of a child, a father wished to invest in a trust fund which gives 12% compounded quarterly. How much must he invest if he wants to accumulate P650,000 by the time the child reaches his 21st birthday? 5. To provide for a purchase of a car worth P950,000 as a gift to his mother 5 years from now. How much should Benjamin invest today at 18% compounded quarterly? 6. Mrs. Dela Cruz invested P70,000 at 12% compounded quarterly for 5 years and…
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bartleby, a Learneo, Inc. business

•	Your existing business generates $135,000 in EBIT.
•	The corporate tax rate applicable to your business is 25%.
•	The depreciation expense reported in the financial statements is $25,714.
•	You don’t need to spend any money for new equipment in your existing cafés; however, you do need $20,250 of additional cash.
•	You also need to purchase $10,800 in additional supplies—such as tableclothes and napkins, and more formal tableware—on credit.
•	It is also estimated that your accruals, including taxes and wages payable, will increase by $6,750.