Need help with this question solution general accounting Raymon Company received $7,000 cash from the sale of a machine thathad an $11,000 book value. If the company is subject to a 30% income taxrate, the net cash flow to use in a discounted-cash-flow analysis would be:A) $2,100.B) $4,900.C) $5,800.D) $7,000.E) $8,200.Show your complete solution.

Step 1: Define Asset DisposalAsset disposal requires recording the profit or loss on an asset's sale…

Answered: Raymon Company received $7,000 cash…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Fergus Inc. has sales of $47,000, costs of $19,900, depreciation expense of $3,400, and interest expense of $2,900. If the tax rate is 35%, what is the operating cash flow, or OCF? (Omit $ sign in your response.) Operating cash flow $
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A company has just sold a product with the following payment plan: $75, 000 today, $50, 000 at the end of year 1. and $25, 000 at the end of year two. If the payments are deposited into an account earning 4.5% per year, calculate the present value for the cash flow. Show steps using ONLY a financial calculator. The answer should be 145,740.
Hailey, Inc., has sales of $24200, costs of $8800, depreciation expense of $2600, and interest expense of $1800. Assume the tax rate is 36 percent. What is the operating cash flow, or OCF? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
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High Towers, Inc., has sales of $586,000, costs of $363,000, depreciation expense of $32,000, and interest expense of $14,000. If the tax rate is 33 percent, the operating cash flow, or OCF, is $ ______ . (Round your answer to the nearest whole dollar amount. Do not include the dollar sign ($).).

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