Plenti-Good Foods has ending net fixed assets of $98,700 and beginning net fixedassets of $84,900. During the year, the firm sold assets with a total book value of$13,200 and also recorded $9,800 in depreciation expense. How much did thecompany spend to buy new fixed assets?a. -$23,900b. $40,700c. $37,400d. $9,200e. $36,800

Capital spending is the amount spend by the company to purchase new fixed assets and is long term…

Answered: Plenti-Good Foods has ending net fixed…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Presented below is information related to Anderson Company for 2022. Sales revenue 25,000,000Cost of goods sold 16,000,000Interest expense 70,000Selling and administrative expenses 4,700,000Loss from write-off of goodwill. 820,000Gain on the sale of investments 110,000Loss due to flood damage 390,000Loss on the disposition of the wholesale division 8 00,000Loss on operations of the wholesale division 150,000Dividends declared on ordinary shares 250,000Dividends declared on…
Show Me How Net Present Value Method The following data are accumulated by Geddes Company in evaluating the purchase of $118,900 of equipment, having a four-year useful life: Net Income Net Cash Flow Year 1 $34,000 $58,000 Year 2 21,000 45,000 Year 3 10,000 34,000 Year 4 (1,000) 23,000 Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 8 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162 a. Assuming that the desired rate of return is 12%, determine the net present value for the proposal. Use the table of the present value of $1 presented above. If required, round to the nearest dollar. Present value of net cash flow $fill in the blank 1…
Panache Interiors purchased $2,790 in net new fixed assets and had depreciation expenses of $1,150. The company increased net working capital by $2,800 and paid out $2,250 in dividends and $4,900 in interest over the past year. The firm also issued $3,500 worth of stocks and paid off $790 in long-term debt. What is the amount of the company's Cash Flow from Assets? Responses $8,450 $17,030 $15,450 $4,440
Land: $9,397 Buildings: $20,722 Furnitures, Fixtures, and Equipment: $16,631 Other: $6,931 Accumulated Depreciation: $26,506 Net Property, Plant, and Equipment: 27,175 Sales: $134,752 a. Assuming a useful life of 10 years and no residual value, what is the expected amount of depreciation expense? answer to the nearest million. b. What is the fixed asset turnover ratio? answer to two decimal places. c. What is the average age of fixed assets? answer to two decimal places. d. What is depreciation expense as a percentage of net sales? answer to two decimal places.
Best Feeds, Inc. has the following information on their income statement: Sales $2,000,000 Cash Costs 1,200,000 Depreciation 100,000 EBIT 700,000 Interest Expense 200,000 EBT 500,000 Taxes (25%) 125,000 Net Income $ 375,000 What is their NOPAT? Group of answer choices $427,620 $450,120 $375,000 $498,750 $525,000
ang Services has annual revenue of $37,800, cost of goods sold of $23,200, and administrative expenses of $6,300. The firm paid $700 in dividends, $280 in interest, and has a total tax rate of 21 percent. The firm will add $2,810 to retained earnings. What is the depreciation expense? Multiple Choice a. $2,300 b. $3,709 c. $2,640 d. $780 e. $3,577
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Papa Roach Exterminators, Inc., has sales of $554,000, total costs of $245,000, depreciation expense of $40,000, interest expense of $27,000, and an average tax rate of 35 percent. What is the net income for the firm? a. $48,100 b. $224,300 c. $197,300 d. $157,300 e. $184,300
The following is the Statement of Financial Position and the Statement of Income for Kaminsky Ltd. Kaminsky Ltd Statement of Financial Position As at December 31, 2020 2020 2019 Assets Cash 24,700 $ 41,750 Accounts receivable 188,500 183,400 Allowance for doubtful accounts (15,000) (16,500) FVTOCI investments 260,000 200,000 FVTPL investments 60,000 80,000 Inventory Prepaid insurance 184,000 161,000 18,000 16.000 665,650 150,000 1,480,000 -580,000 S 1,400,000 $ 1,050,000 $ 2,120,200 $ 1,715,650 $ 720,200 $ Land 400,000 Buildings and equipment Accumulated depreciation 1,650,000 -650,000 Liabilities and Shareholders' Equity Short-term bank loan 22,000 5000 103,600 16,750 Accounts payable Unearned revenues Тах рayable Dividends payable 119,300 20,400 19,900 25,000 16,600 30,000 $ 187,250 S $ 800,000 $ 1,124,950 186,300 Common shares 800,000 Retained earnings 747,350 -18,000 1,529,350 $ 2,120,200 $ 1,715,650 AOC- FVTOCI investments 8,000 1,932,950 Kaminsky Ltd Statement of Income for the…
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