During 2014, Raines Umbrella Corp. had sales of $743686. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $434397, $71886, and $352838, respectively. In addition, the company had an interest expense of $50573 and a tax rate of 30 percent. (Ignore any tax loss carryback or carryforward provisions. This means that if the company does not have any taxable income, they do not pay any tax.) What is Raines’s operating cash flow (OCF) for 2014?
Calculate operating cash flow for 2014
Sales | 743686 |
Cost of goods sold | -434397 |
Gross profit | 309289 |
Administrative and selling expense | -71886 |
Depreciation | -352838 |
Income before interest and tax | -115435 |
Less: Interest | -50573 |
Income before tax | -166008 |
Less: Income tax @30% | 49802.40 |
Net income | -116205.6 |
Depreciation | 352838 |
Operating cash flow | 236632.40 |
Operating cash flow for 2014 = $236632.40
During 2014, Raines Umbrella Corp. had sales of $743686. Cost of goods sold, administrative and selling...
During 2014, Raines Umbrella Corp. had sales of $743686. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $434397, $71886, and $352838, respectively. In addition, the company had an interest expense of $50573 and a tax rate of 30 percent. (Ignore any tax loss carryback or carryforward provisions. This means that if the company does not have any taxable income, they do not pay any tax.) What is Raines’s operating cash flow (OCF) for 2014?
During 2014, Raines Umbrella Corp. had sales of $701006. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $583702, $89744, and $116610, respectively. In addition, the company had an interest expense of $41418 and a tax rate of 31 percent. (Ignore any tax loss carryback or carryforward provisions. This means that if the company does not have any taxable income, they do not pay any tax.) What is Raines’s net income for 2014
During 2014, Raines Umbrella Corp. had sales of $712259. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $599727, $82340, and $112606, respectively. In addition, the company had an interest expense of $40726 and a tax rate of 33 percent. (Ignore any tax loss carryback or carryforward provisions. This means that if the company does not have any taxable income, they do not pay any tax.) What is Raines’s net income for 2014?
During 2014, Raines Umbrella Corp. had sales of $705112. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $584125, $80782, and $101960, respectively. In addition, the company had an interest expense of $49084 and a tax rate of 33 percent. (Ignore any tax loss carryback or carryforward provisions. This means that if the company does not have any taxable income, they do not pay any tax.) What is Raines’s net income for 2014?
During 2014, Raines Umbrella Corp. had sales of $650435. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $505481, $93119, and $87958, respectively. In addition, the company had an interest expense of $87871 and a tax rate of 34 percent. (Ignore any tax loss carryback or carryforward provisions. This means that if the company does not have any taxable income, they do not pay any tax.) Suppose Raines Umbrella Corp. paid out $52467 in cash dividends. If...
During 2009, Raines Umbrella Corp. had sales of $734,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $562,000, $95,000, and $128,000, respectively. In addition, the company had an interest expense of $102,000 and a tax rate of 40 percent. (Ignore any tax loss carryback or carryforward provisions.) Assume Raines Umbrella Corp. paid out $21,000 in cash dividends. If spending on net fixed assets and net working capital was zero, and if no new stock was issued...
During 2010, Raines Umbrella Corp. had sales of $850,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $610,000, $110,000, and $140,000, respectively. In addition, the company had an interest expense of $85,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.) Suppose Raines Umbrella Corp. paid out $63,000 in cash dividends. Is this possible? If spending on net fixed assets and net working capital was zero, and if no...
During 2009, Raines Umbrella Corp. had sales of $750,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $561,000, $96,000, and $131,000, respectively. In addition, the company had an interest expense of $99,000 and a tax rate of 40 percent. (Ignore any tax loss carryback or carryforward provisions.) Assume Raines Umbrella Corp. paid out $24,000 in cash dividends. If spending on net fixed assets and net working capital was zero, and if no new stock was issued...
During 2010, Raines Umbrella Corp. had sales of $850,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $610,000, $110,000, and $140,000, respectively. In addition, the company had an interest expense of $85,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.) Suppose Raines Umbrella Corp. paid out $63,000 in cash dividends. Is this possible? If spending on net fixed assets and net working capital was zero, and if no new...
Net Income and OCF: During 2010, Raines Umbrella Corp. had sales of &740,000. Costs of goods sold, administrative and selling expenses, and depreciation expenses were $610,000, $105,000, and $140,000, respectively. In addition, the company had an interest expense of $70,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.) What is Raines’ net income for 2010? What is its operating cash flow? Explain your results in (a) and (b).