Monu Enterprises received $9,000 cash from the sale of a machine that had a $13,000 book value. If the company is subject to a 25% income tax rate, the net Icash flow to use in a discounted-cash-flow analysis would be: A. $3,000 B. $6,750 C. $7,750 D. $9,000 E. $10,000

Monu Enterprises received $9,000 cash from the sale of a machine that had a $13,000 book value. If the company is subject to a 25% income tax rate, the net Icash flow to use in a discounted-cash-flow analysis would be: A. $3,000 B. $6,750 C. $7,750 D. $9,000 E. $10,000

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 11P: The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are...

See similar textbooks

Related questions

Q: Please provide answer the following requirements on these financial accounting question

A: A.To determine the market value, we can use the Gordon Groth Model. The formula is:V = CF1/(r-g)…

Q: What is the company's price earnings ratio?

A: Given:Market price per share = $52EPS = $0.85Dividend per share = $0.25 Formula:P/E = Stock price /…

Q: Need true answer general Accounting

A: Step 1: Define Net Realizable Value (NRV)Net Realizable Value (NRV) is the amount of accounts…

Q: hi expert please help me

A: To calculate the cost per equivalent unit for materials using the FIFO method, we use the following…

Q: Sol This question answer

A: The correct option is C. $4,050Given:S.P. per ticket package= $200C.P. per ticket package =$170Fixed…

Q: What was your holding period return on these financial accounting question?

A: Step 1:Given,Investment at the beginning of the year: $75Growth in the value of the investment:…

Q: Hi expert please help me this question

A: Percentage Increase in Net Operating Income = Operating leverage * Percentage change in sales…

Q: expert accounting answer

A: Step 1: Definition of Predetermined Overhead RateThe predetermined overhead rate is used to allocate…

Q: Based on the material in Module Six, what do you think is the most difficult part of selecting and…

A: Another major challenge is supplier management and communication. Operating across multiple time…

Q: hi expert please help me answer

A: Step 1: Definition of Work in Progress (WIP)Work-in-progress (WIP) refers to partially completed…

Q: provide correct answer

A: Step 1: Definition of Manufacturing Overhead CostsManufacturing overhead costs include indirect…

Q: Answer please???

A: Step 1: Definition of Inventory Turnover RatioThe inventory turnover ratio measures how many times a…

Q: Please help me with solve this question general Accounting

A: Step 1: Define Cash Payback PeriodCash Payback Period is the time required for an investment to…

Q: What is the company's price earnings ratio? Accounting

A: Step 1: Definition of Price/Earnings (P/E) RatioThe Price/Earnings (P/E) ratio is a financial metric…

Q: Need help this question

A: Step 1: Definition of Break-Even PointThe Break-Even Point (BEP) is the level of sales at which…

Q: What is the firm's PEG ratio of this financial accounting question?

A: Step 1: Define PEG RatioThe Price/Earnings to Growth (PEG) ratio is a valuation metric that compares…

Q: Provide correct answer general accounting

A: Step 1: Define Projected Net IncomeProjected net income is an estimate of a company's future…

Q: correct answer plz

A: Step 1: Definition of Deferred RevenueDeferred revenue, also known as unearned revenue, refers to…

Q: Help me to solve this questions

A: To determine the gross profit percentage, we use the formula: Gross Profit Percentage =(Gross Profit…

Q: Answer ? Financial accounting question

A: Step 1: Define Annual Interest RateThe annual interest rate is the percentage increase in the value…

Q: none

A: To calculate the Return on Equity (ROE) for 2015, we use the formula: ROE =Net Income / Average…

Q: How much cash did Baron Enterprises collect from its customers during the year on these financial…

A: Step 1: Define Cash Collections from CustomersCash Collections from Customers refer to the actual…

Q: What is the average cost per snowmobile

A: Step 1: Definition of Average Cost Per UnitThe average cost per unit is the total cost incurred for…

Q: Variable overhead per unit:12, fixed overhead per unit:28

A: Explanation of Variable Costing Method: Variable costing is a costing system that treats only…

Q: The gross profit percentage would be closest to:

A: Step 1: Definition of Gross Profit PercentageThe Gross Profit Percentage measures how much of a…

Q: What is the net realisable value?

A: Explanation of Accounts Receivable: Accounts receivable represents the amounts owed to a company by…

Q: Blossom Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead…

A: Detailed Explanation of the Adjusting Entry for Underapplied OverheadStep 1: Understanding the…

Q: Zeb Enterprises' corporate charter allows it to issue 3,000,000 shares of common stock. In its first…

A: Detailed explanation: Calculation of Outstanding Shares for Zeb EnterprisesIn this problem, we are…

Q: Quick answer of this accounting questions

A: Step 1: Definition of Net PayNet pay is the amount of earnings an employee takes home after all…

Q: Financial Accounting

A: To find the expected return on the asset, we use the Capital Asset Pricing Model (CAPM) formula:…

Q: Financial Accounting

A: Step 1: Definition of Cost of New Common StockThe Cost of New Common Stock represents the return…

Q: Get correct answer this financial accounting question

A: Step 1: Define Ending InventoryEnding Inventory is the value of goods remaining in stock at the end…

Q: none

A: Substituting the values: ROCE = $0.69/$49.00 * 100 ROCE=1.41% Thus, the analysts were forecasting a…

Q: none

A: To calculate the degree of operating leverage (DOL), we use the formula: DOL =Contribution Margin /…

Q: hello tutor please help me

A: Calculate Contribution MarginThe Contribution Margin per Unit is given by:Contribution Margin per…

Q: None

A: To calculate the change in total revenue if The Shirt Emporium introduces the new lower-priced line…

Q: Answer

A: Income earned = Additional sales * Margin Income earned = $560,000*8% Income earned = $44,800

Q: provide correct answer is best

A: Step 1: Find Equity (E)The Debt-Equity Ratio formula is: D/E = 0.52E = D/0.52 Substituting D = 4,…

Q: can you please solve this

A: Step 1: Definition of Cost of Goods Sold (COGS) Using Gross Profit MethodThe Gross Profit Method is…

Q: Determine the amount of cash received

A: Step 1: Definition of Cash Received from CustomersCash received from customers refers to the actual…

Q: What is the unit product cost using absorption costing?

A: Step 1: The only difference between variable and absorption costing is the treatment of fixed…

Q: Hi expert please help me this question correct answer

A: Key Formulas:Predetermined Overhead Rate (POHR):POHR = Estimated Manufacturing Overhead / Estimated…

Q: Hi expert please help me this question

A: To determine the change in Gross Profit from 2014 to 2015, we first calculate the Gross Profit for…

Q: Need help with this question solution general accounting

A: To calculate the percentage return of the NASDAQ Composite Index: Percentage return =(Gain /…

Q: none

A: Step 1: Calculate Operating Income for 2,000 Units (Base Case)The formula for Operating Income is:…

Q: Need help with this question solution general accounting

A: Step 1: Define Total Dollar ReturnTotal Dollar Return is the total profit an investor earns from an…

Q: Carter Sound Systems applies manufacturing overhead on the basis of machine-hours. At the beginning…

A: Explanation of Machine Hours: Machine hours represent the time that manufacturing equipment is…

Q: Hello tutor please given correct answer general Accounting

A: Step 1: Define Return on Equity (ROE)Return on Equity (ROE) is a financial metric that measures a…

Q: What was the underapplid or overaplied overhead for the month

A: Explanation of Predetermined Overhead Rate:The Predetermined Overhead Rate is an estimated cost rate…

Q: Determine the amount of underapllied or overapplied manufacturing overhead

A: Explanation of Predetermined Overhead Rate: Predetermined overhead rate is a calculated rate…

Question

5 PTS

Monu Enterprises received $9,000 cash from the sale of
a machine that had a $13,000 book value. If the
company is subject to a 25% income tax rate, the net
Icash flow to use in a discounted-cash-flow analysis
would be:
A. $3,000
B. $6,750
C. $7,750
D. $9,000
E. $10,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Your pro forma income statement shows sales of $1,006,000, cost of goods sold as $488,000, depreciation expense of $97,000, and taxes of $105,250 due to a tax rate of 25%. What are your pro forma earnings? What is your pro forma free cash flow? Complete the pro forma income statement below: (Round to the nearest dollar.) Sales Cost of Goods Sold Gross Profit Depreciation EBIT Taxes (25%) Earnings $ $ $ $ $ $ $
Consider the following data extracted from an after-tax cash flow calculation. Before-Tax-and-Loan = $22,500 Loan Principal Payment = $5,926 Loan Interest Payment = $2,400 MACRS Depreciation Deduction = $16,665 Which of the following is closest to the Taxable Income? a. −$2,491. b. −$91. c. $3,435. d. $14,174
Use the following information for Taco Swell, Inc., for Problems 23 and 24 (assume the tax rate is 21 percent): 2020 2021 Sales $21,514 $24,047 Depreciation 3,089 3,229 Cost of goods sold 7,397 8,750 Other expenses 1,759 1,531 Interest 1,443 1,723 Cash 11,279 12,021 Accounts receivable 14,934 17,529 Short-term notes payable 2,176 2,133 Long-term debt 37,778 45,798 Net fixed assets 94,601 100,893 Accounts payable 8,150 8,632 Inventory 26,551 28,421 Dividends 2,573 3,008 Financial Statements [O LO1] Draw up an income statement and balance sheet for this company for 2020 and 2021.
Please give solution for this accounting question
1. A company is considering whether to purchase a new machine. Machines A and B are available for RM92,000 each. Earnings after taxation are as follows: Years Machine A (RM) Machine B (RM) 1 34,000 18,000 2 32,000 24,000 3 40,000 32,000 4 24,000 48,000 5 16,000 32,000 By using a discount rate of 10%, you are required to evaluate the two alternatives using the following: a. Payback method, and b. Net present value method. a.Payback method, and b. Net present value method.
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?
Payable Amount?
Venus Corp. sold goods, with a selling price of $18,421, for cash. The state sales tax rate is 8%. What amount is credited to the Sales Revenue account? (Round calculations to the nearest dollar.) XA. $1,474 B. $16,947 C. $18,421 O D. $19,895
Questio Venus Corp. sold goods, with a selling price of $16,221, for cash. The state sales tax rate is 8%. What amount is credited to the Sales Revenue account? (Round calculations to the nearest dollar.) O $15,843 O $1378 O $17,221 O $16,221 Question 1 of 41>>
prn.2
Consider the following values. NOIn+1: $2.8 million. Cap rate: 7.5%. Brokerage commission: 3%. Remaining mortgage balance: $12 million. Remaining book value: $14 million. Total depreciation taken: $4.9 million. Recapture tax (for depreciation taken): 25%. Tax on capital gain: 20%. What is the after-tax cash flow from the sale? Excel Link: Excel Sheet.xlsx $12,870,667 $19,525,667 $19,770,667 $24,213,333
Please need help with this question