Homework Answers
Salvage value is the estimated value of the asset at the end of its beneficial period. Salvage value is for tangible assets only. For depreciation under MACRS, salvage value is irrelevant for calculating depreciaiton
Correct choice C
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(2) Compute the company's cash flow on total assets ratio for Its fiscal year 2018. tes...
Salvage value is: Multiple Choice 0 Not a factor relevant to determining depletion 0 A factor...
Salvage value is: Multiple Choice 0 Not a factor relevant to determining depletion 0 A factor relevant to amortizing an intangible asset with an indefinite life 0 An estimate of the asset's value at the end of its benefit period 0 A factor relevant to determining depreciation under MACRS. 0 A factor relevant to determining depreciation that cannot be revised during an asset's useful life.
22) Plant assets are defined as: A) Held for sale. B) Tangible assets used in the...
22) Plant assets are defined as: A) Held for sale. B) Tangible assets used in the operation of business that have a useful life of less than one accounting period. C) Current assets. D) Tangible assets that have a useful life of more than one accounting period and are used in the operation of a business. E) Intangible assets used in the operations of a business that have a useful life of more than one accounting period. 23) Salvage value...
Depreciation and accounting cash flow A firm in the third year of depreciating its only asset,...
Depreciation and accounting cash flow A firm in the third year of depreciating its only asset, which originally cost $ 187,000 and has a 5-year MACRS recovery period , has gathered the following data relative to the current year's operations: Accruals $ 15,600 Current assets 119,000 Interest expense 15,900 Sales revenue 414,000 Inventory 70,500 Total costs before depreciation, interest and taxes 285,000 Tax rate on ordinary income 21 % a. Use the relevant data to determine the operating cash flow...
Depreciation and accounting cash flow A firm in the third year of depreciating its only asset,...
Depreciation and accounting cash flow A firm in the third year
of depreciating its only asset, which originally cost $173,000 and
has a 5-year MACRS recovery period
, has gathered the following data relative to the current
year's operations:
Accruals
$15,300
Current assets
117,000
Interest expense
15,200
Sales revenue
413,000
Inventory
69,600
Total costs before depreciation, interest and taxes
297,000
Tax rate on ordinary income
21%
a. Use the relevant data to determine the operating cash flow
for the current...
please read questions because its third time no one can help Depreciation and accounting cash flow...
please read questions because its third time no one can help
Depreciation and accounting cash flow A firm in the third year of depreciating its only asset, which originally cost $180,000 and has a 5-year MACRS recovery period A, has gathered the following data relative to the current year's operations: Accruals Current assets Interest expense Sales revenue Inventory Total costs before depreciation, interest and taxes Tax rate on ordinary income $15,000 120,000 15,000 400,000 70,000 290,000 21% a. Use the...
What is the cash flow from assets in year 1? What is the after-tax salvage value...
What is the cash flow from assets in year 1?
What is the after-tax salvage value at the end of year 3?
What is the cash flow from assets in year 3?
Hint: add the after-tax salvage value and the recovery of net
working capital.
Intro Lattice Semiconductor is thinking of buying a new machine for $190,000 that would save it $30,000 per year in production costs. The savings would be constant over the project's 3-year life. The machine falls...
NORTHEAST ART SUPPLY, INC. STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31,2017 CASH FLOW...
NORTHEAST ART SUPPLY, INC. STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31,2017 CASH FLOW FROM OPERATING ACTIVITIES: $30,175 Net Income Adjustments to reconcile net income to net cash flows S 8,500 Decrease in accounts receivable Increase in inventory Increase in accounts payable Increase in income taxes payable 1,000 (5,000) 6,000 3.000 13.500 $43,675 Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of Equipment Purchase of Investments Sale of Investments $ (2,000) (10,000) 20,000 Net...
quant analysis help What is the operating cash flow for 2016? Total Revenues Cost of Sales...
quant analysis help
What is the operating cash flow for 2016? Total Revenues Cost of Sales Gross Profit SGA Expenses Depreciation Earnings Before Interest and Taxes Interest Taxable income Taxes 21,000 10,000 11,000 6,000 1,500 3,500 500 3,000 1.000 Which of the following is FALSE? One way to help lessen the agency problem is to align the interests of management with those of shareholders by using stock or stock options in management compensation. The potential of replacement through a proxy...
Calculate the company's debt to total assets ratio (also called total debt ratio) for both the...
Calculate the company's debt to total assets ratio (also called total debt ratio) for both the recent year and the prior year. Show your computations. Write the textbook formula here: Recent year: Prior year: Explain what information this ratio provides (define), and what the results mean to this company. Use complete sentences and your own words. Compare the two, has the ratio improved? The Procter& Gamble Company 37 Consolidated Statements of Earnings 2018 2017 2016 NET SALES S 66,832 S...
A company has $20 million in assets and a total asset turnover ratio of 2. Its...
A company has $20 million in assets and a total asset turnover ratio of 2. Its costs are equal to 30% of sales. The firm has ROE of 20% and a NPM of 8%. Assume the firm doesn’t have any preferred stock. If the firm has $2 million in cash and Market Value of Equity to Book Value of Equity (M/B) is 3.5, what is its EV/EBITDA? Now assume that the industry average for EV/EBITDA is 3. If the firm...
Salvage value is: Multiple Choice 0 Not a factor relevant to determining depletion 0 A factor relevant to amortizing an intangible asset with an indefinite life 0 An estimate of the asset's value at the end of its benefit period 0 A factor relevant to determining depreciation under MACRS. 0 A factor relevant to determining depreciation that cannot be revised during an asset's useful life.
22) Plant assets are defined as: A) Held for sale. B) Tangible assets used in the operation of business that have a useful life of less than one accounting period. C) Current assets. D) Tangible assets that have a useful life of more than one accounting period and are used in the operation of a business. E) Intangible assets used in the operations of a business that have a useful life of more than one accounting period. 23) Salvage value...
Depreciation and accounting cash flow A firm in the third year
of depreciating its only asset, which originally cost $173,000 and
has a 5-year MACRS recovery period
, has gathered the following data relative to the current
year's operations:
Accruals
$15,300
Current assets
117,000
Interest expense
15,200
Sales revenue
413,000
Inventory
69,600
Total costs before depreciation, interest and taxes
297,000
Tax rate on ordinary income
21%
a. Use the relevant data to determine the operating cash flow
for the current...
please read questions because its third time no one can help
Depreciation and accounting cash flow A firm in the third year of depreciating its only asset, which originally cost $180,000 and has a 5-year MACRS recovery period A, has gathered the following data relative to the current year's operations: Accruals Current assets Interest expense Sales revenue Inventory Total costs before depreciation, interest and taxes Tax rate on ordinary income $15,000 120,000 15,000 400,000 70,000 290,000 21% a. Use the...
What is the cash flow from assets in year 1?
What is the after-tax salvage value at the end of year 3?
What is the cash flow from assets in year 3?
Hint: add the after-tax salvage value and the recovery of net
working capital.
Intro Lattice Semiconductor is thinking of buying a new machine for $190,000 that would save it $30,000 per year in production costs. The savings would be constant over the project's 3-year life. The machine falls...
NORTHEAST ART SUPPLY, INC. STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31,2017 CASH FLOW FROM OPERATING ACTIVITIES: $30,175 Net Income Adjustments to reconcile net income to net cash flows S 8,500 Decrease in accounts receivable Increase in inventory Increase in accounts payable Increase in income taxes payable 1,000 (5,000) 6,000 3.000 13.500 $43,675 Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of Equipment Purchase of Investments Sale of Investments $ (2,000) (10,000) 20,000 Net...
quant analysis help
What is the operating cash flow for 2016? Total Revenues Cost of Sales Gross Profit SGA Expenses Depreciation Earnings Before Interest and Taxes Interest Taxable income Taxes 21,000 10,000 11,000 6,000 1,500 3,500 500 3,000 1.000 Which of the following is FALSE? One way to help lessen the agency problem is to align the interests of management with those of shareholders by using stock or stock options in management compensation. The potential of replacement through a proxy...
Calculate the company's debt to total assets ratio (also called total debt ratio) for both the recent year and the prior year. Show your computations. Write the textbook formula here: Recent year: Prior year: Explain what information this ratio provides (define), and what the results mean to this company. Use complete sentences and your own words. Compare the two, has the ratio improved? The Procter& Gamble Company 37 Consolidated Statements of Earnings 2018 2017 2016 NET SALES S 66,832 S...
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