a) Net income = (Sales - COGS - Selling expenses - Depreciation
- Interest expenses)*(1-Tax) =(739,000
-454,000-99000-144500-72200)*(1-24%) = -23332
Tax = (Sales - COGS - Selling expenses - Depreciation - Interest
expenses)*Tax Rate = (739,000 -454,000-99000-144500-72200)*24% =
-7368
Since EBIT is negative hence Tax = 0
b) OCF = EBIT -Taxes + Depreciation = (Sales - COGS - Selling
expenses - Depreciation) - Taxes + depreciation =
(739,000 -454,000-99000-144500) -0 + 144500 = 186,000
Please Discuss in case of Doubt
Best of Luck. God Bless
Please Rate Well
During 2018, Raines Umbrella Corp. had sales of $739,000. Cost of goods sold, administrative and selling...
During 2018, Raines Umbrella Corp. had sales of $721,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $448,000, $96,000, and $141,500, respectively. In addition, the company had an interest expense of $71,000 and a tax rate of 23 percent. (Ignore any tax loss carryforward provisions and assume interest expense is fully tax deductible.) company had an a. What is the company's net income/loss for 2018? (Do not round intermediate calculations. Enter your answer as a positive...
During 2018, Raines Umbrella Corp. had sales of $742,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $455,000, $99,500, and $145,000, respectively. In addition, the company had an interest expense of $72,400 and a tax rate of 25 percent. (Ignore any tax loss carryforward provisions and assume interest expense is fully tax deductible.) a. What is the company's net income/loss for 2018? (Do not round intermediate calculations. Enter your answer as a positive value.) b. What...
8 During 2018, Raines Umbrella Corp. had sales of $748,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $457,000, $100,500, and $146,000, respectively. In addition, the company had an interest expense of $72,800 and a tax rate of 22 percent. (lgnore any tax loss carryforward provisions and assume interest expense is fully tax deductible.) points a. What is the company's net income/loss for 2018? (Do not round intermediate calculations. Enter your answer as a positive value.)...
During 2018, Raines Umbrella Corp. had sales of $705,000. Cost of goods sold administrative and selling expenses, and depreciation expenses were $445,000, $95,000, and $140,000, respectively In addition, the company had an interest expense of $70,000 and a tax rate of 25 percent. (Ignore any tax loss carryforward provisions and assume interest expense is fully deductible.) Suppose Raines Umbrella Corp. paid out $102,000 in cash dividends. Is this possible? If spending on net fixed assets and net working capital was...
During 2018, Raines Umbrella Corp. had sales of $715,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $446,000, $95,000, and $140,500, respectively. In addition, the company had an interest expense of $70,600 and a tax rate of 21 percent. (Ignore any tax loss carry forward provisions and assume interest expense is fully tax deductible.) a. What is the company’s net income/loss for 2018? (Do not round intermediate calculations. Enter your answer as a positive value.) b....
During 2018, Raines Umbrella Corp. had sales of $800,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $580,000, $90,000, and $150,000, respectively. In addition, the company had an interest expense of $89,000 and a tax rate of 21 percent. (Ignore any tax loss carryforward provisions and assume interest expense is fully deductible.) Suppose the company paid out $53,000 in cash dividends. If net capital spending and net working capital was zero, and if no new stock...
During 2018, Raines Umbrella Corp. had sales of $705,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $445,000, $95,000, and $140,000, respectively. In addition, the company had an interest expense of $70,000 and a tax rate of 25 percent. (Ignore any tax loss carryforward provisions and assume interest expense is fully deductible.) Suppose Raines Umbrella Corp. paid out $102,000 in cash dividends. Is this possible? If spending on net fixed assets and net working capital was...
-2 Chap2 i Säved During 2018, Raines Umbrella Corp. had sales of $742,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $455,000, $99,500, and $145,000, respectively. In addition, the company had an interest expense of $72,400 and a tax rate of 25 percent. (Ignore any tax loss carryforward provisions and assume interest expense is fully tax deductible.) Book a. What is the company's net income/loss for 2018? (Do not round intermediate calculations. Enter your answer as...
You received partial credit in the previous attempt. During 2018, Raines Umbrella Corp. had sales of $745,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $456,000, $100,000, and $145,500, respectively. In addition, the company had an interest expense of $72.600 and a tax rate of 21 percent. (Ignore any tax loss carryforward provisions and assume interest expense is fully tax deductible.) a. What is the company's net income/loss for 2018? (Do not round intermediate calculations. Enter...
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...