Sterra, Inc. has sales of $55,000, costs of $26,800, and a depreciation expense of $2,400. If the tax rate is 25 percent, what is the operating cash flow, or OCF? Need help
Q: Stellar Systems Logistics purchases a new cargo van for $48,000. The sales taxes are $3,600. The…
A: Explanation of Asset Cost Capitalization: The principle of asset cost capitalization requires…
Q: Give me Answer
A: Order Quantity: 7,000 unitsActual Demand: 4,500 unitsSelling Price: $250 per unitCost per Unit: $165…
Q: BlueTech Corporation's balance sheet reports Assets of $8,400, Contributed Capital of $4,500, and…
A: Step 1: Definition of LiabilitiesLiabilities are the financial obligations a company owes to outside…
Q: Compute net income using accural basis
A: Net income using accrual basis = Sales on credit - Cost of inventory sold on credit - Selling…
Q: Kindly help me with of this general accounting questions not use chart gpt please fast given…
A: Step 1: Define Net SalesNet Sales is the total revenue earned from sales after deducting sales…
Q: What is the firm operating cycle?
A: Explanation of Operating Cycle:The operating cycle is the total number of days it takes a company to…
Q: What basis should he use for ccomputing gain or loss
A: Since Patrick did not specify which shares he sold, the IRS requires that he use the First-In,…
Q: Why does capital adequacy determine accounting method selection? (a) Standard methods work for all…
A: Explanation of Capital Adequacy: Capital adequacy refers to the measure of a company's financial…
Q: hi expert please help me
A: REQUIRED: To calculate the total period cost under variable costing, we need to identify which costs…
Q: Sunland Enterprises uses a computer to handle its sales invoices. Lately, business has been so good…
A: Step 1:📘 Given Data Recap:DescriptionCurrent MachineNew MachineOriginal purchase…
Q: Tutor, need your help
A: Explanation of Aggregate Constraint Principle: The aggregate constraint principle represents a…
Q: The inventory turnover is?
A: Explanation of Goods Available for Sale: This represents the total cost of inventory that a company…
Q: Summit Holdings has $280,000 in accounts receivable that will be collected within 70 days. The…
A: To calculate the rate of return for Skyline Factoring Company, we use the formula for the rate of…
Q: I want to correct answer general accounting question
A: Step 1: Definition of Contribution Format Income StatementA Contribution Format Income Statement…
Q: need solution general accounting method
A: Calculation of Predetermined Overhead RatePredetermined Overhead Rate = Estimated Factory Overheads/…
Q: How much overhead cost would be assigned?
A: Step 1: Definitions Activity-Based Costing (ABC):Activity-Based Costing (ABC) is a costing method…
Q: ??!!
A: Provided Data:Depreciation is 12% of salesRevenues (Sales) = $60,000Gross Profit = $25,000 (not…
Q: Determine the amount of manufacturing overhead that would have been
A: Concept of Predetermined Overhead Rate:The predetermined overhead rate is an estimated rate used to…
Q: Accounting solution
A: Step 1: Definition of Maturity ValueMaturity Value is the total amount that a borrower must repay at…
Q: These transactions took place for Blossom Co. 2024 May 1 Received a $3,000, 12-month, 4% note in…
A: Step 1: This question requires recording journal entries for Blossom Co.'s notes receivable. It…
Q: Financial Accounting
A: Step 1: Define Asset AllocationAsset Allocation refers to the process of distributing the cost of a…
Q: Dover Chemical Company manufactures specialty chemicals by a series of three processes, all…
A: Units Started and Completed in January would be 31,800 units (34,500-2700) for both Direct Materials…
Q: Please need help with this general accounting question
A: Step 1: Define Predetermined Overhead RatePredetermined Overhead Rate is the rate used to allocate…
Q: Solve with explanation and accounting question
A: Step 1: Definition of Payroll Deduction PercentagePayroll Deduction Percentage is the portion of an…
Q: Given the solution and accounting question
A: Step 1: Definition of Owner's EquityOwner's Equity represents the owner's share in the business…
Q: Accounting solution
A: Step 1: Definition of Return on Assets (ROA)Return on Assets (ROA) is a financial ratio that shows…
Q: Calculate return on assets
A: To calculate the Return on Assets (ROA), we use the formula: ROA=Net Income/Average Assets However,…
Q: Newman Industries has a net income of $750,000, a return on assets (ROA) of 9%, and interest expense…
A: Concept of Net Income:Net income is the profit a company earns after subtracting all expenses,…
Q: Accounting Question
A: Explanation of Asset Turnover Ratio: Asset turnover ratio is a financial efficiency metric that…
Q: Solaris Inc. is evaluating three projects: Alpha, Beta, and Gamma. • Alpha requires an investment of…
A: Step 1:The Profitability Index (PI) formula is calculated by dividing the present value of future…
Q: The magnitude of operating leverage for Roshan
A: To determine the decrease in net income, we use the formula: % change in net income=Degree of…
Q: can you help me with
A: To find the required rate of return on AA's stock, we use the Capital Asset Pricing Model (CAPM)…
Q: please give me true answer
A: To calculate the maturity value of the note, we use the simple interest formula: I=P×r×t…
Q: Kings Company has total assets of $240,000 and total liabilities of $80,000. The company's…
A: The debt-to-equity ratio is calculated as: Debt-to-Equity Ratio=Total Liabilities/Total Equity…
Q: Hi expert please give me answer general accounting question
A: Step 1: Introduction to bondsBonds payable refers to a type of long-term debt that a company or…
Q: Calculate the variable overhead rate
A: Variable Overhead Spending Variance:The variable overhead spending variance is the difference…
Q: Bal Engineering has $60,000 in assets. They also have $25,000in liabilities and $5,000 in expenses,…
A: Provided Data:Assets = $60,000Liabilities = $25,000Expenses = $5,000Dividends =…
Q: I don't need ai answer general accounting question
A: Step 1: Definition of Double-Declining Balance (DDB) MethodThe Double-Declining Balance Method is an…
Q: What amount should be debited to the patent account?
A: Explanation of Patent:A patent is an intangible asset that gives a company the exclusive legal right…
Q: 4 POINTS
A: Explanation of Travel Allowance: A travel allowance is a payment made by employers to employees to…
Q: Foreign currency remeasurement—Stockholders’ equity A U.S.-based parent company acquired a European…
A: The key information to calculate the total stockholders' equity in $US is to use the Current column…
Q: Help with accounting question is correct solution
A: Step 1: Definition of Net IncomeNet income is the amount of profit a company earns after subtracting…
Q: What is the equity at the end of the year
A: We can calculate the equity at the end of the year using the accounting equation:…
Q: On January 1, 2023, Ferris Corp. acquires Hudson Co. for $2.1 million in cash. Hudson’s balance…
A: Explanation of Purchase Price (Acquisition Cost):The purchase price, also known as the acquisition…
Q: I want to correct answer general accounting question
A: Step 1: Definition of Weighted-Average Inventory MethodThe Weighted-Average Inventory Method is a…
Q: What is the total gross margin for the month
A: Step 1: Definition of Gross Margin under Absorption CostingGross Margin under Absorption Costing is…
Q: Please provide accurate answer
A: Step 1; List all the activities and their times:Materials moved to production floor: 25…
Q: Kings Company has total assets of $240,000 and total liabilities of $80,000. The company's…
A: The debt-to-equity ratio is calculated using the formula: Debt-to-Equity Ratio=Total…
Q: Calculate the operating cash flow
A: To calculate the operating cash flow (OCF) using the four different approaches, we can use the…
Q: Cost Accounting
A: Step 1: Definition of MarginMargin refers to the percentage of sales revenue that turns into…
Sterra, Inc. has sales of $55,000, costs of $26,800, and a
Step by step
Solved in 2 steps
- What is the opereting cash flow?Sterra, Inc. has sales of $55,000, costs of $26,800, and a depreciation expense of $2,400. If the tax rate is 25 percent, what is the operating cash flow, or OCF? Correct answerWhat is the annual operating free cash flow if operating revenues increase by $1.2 million, operating expenses (ex-depreciation) go up by $0.7 million, and depreciation goes up by $0.32 million? The tax rate is 31%. Express in $ million, to the nearest $0.001 mil. Drop the $ sign. E.g., if your answer is $506,500, record it as 0.507.
- can you please provide answerA project currently generates sales of $17 million, variable costs equal 40% of sales, and fixed costs are $3.4 million. The firm’s tax rate is 30%. Assume all sales and expenses are cash items. a. What are the effects on cash flow, if sales increase from $17 million to $18.7 million? (Input the amount as positive value. Enter your answer in dollars not in millions.) Req cash flow by b. What are the effects on cash flow, if variable costs increase to 45% of sales? (Input the amount as positive value. Enter your answer in dollars not in millions.) Req cash flow byMac, Incorporated, has sales of $50,000, costs of $23,000, depreciation expense of $2,250, and interest expense of $2,000. If the tax rate is 23 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.)
- Please provide the answer to this financial accounting question with proper steps.What is the fee cash flow to the firm?A company is considering the purchase of a universal grinding machine. The following table sets out a forecast of the annual accounting profit: Revenues $ 412,000 CostsaFootnote a 288,000 Pretax profit 124,000 Tax at 25% 31,000 After-tax profit $ 93,000 aFootnote aNote: costs include depreciation of $84,000. Calculate the operating cash flow using the three methods set out in Equations (6.3A), (6.3B), and (6.3C).
- provide required answer pleaseThe owner of a bicycle repair shop forecasts revenues of $200,000 a year. Variable costs will be $60,000, and rental costs for the shop are $40,000 a year. Depreciation on the repair tools will be $20,000. a. Prepare an income statement for the shop based on these estimates. The tax rate is 20%. b. Calculate the operating cash flow for the repair shop using the three methods given below: Now calculate the operating cash flow. Dollars in minus dollars out. Adjusted accounting profits. Add back depreciation tax shield.Now suppose a firm has the following information: $7 million insales, $4 million of costs of goods sold excluding depreciation andamortization, and $500,000 of other operating expenses. What isits EBITDA? ($2.5 million)
