Question 3 Your firm has net income of $273 on total sales of $1,180. Costs are $660 and depreciation is $130. The tax rate is 30 percent. The firm does not have interest expenses. What is the operating cash flow?
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- Your firm has total sales of $1,420. Costs are $780 and depreciation is $120. The tax rate is 22 percent. The firm does not have interest expenses. What is the operating cash flow? Multiple Choice $342 $420 $526 $473The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are expected to be 75% of sales, and depreciation is expected to be 1.5 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Berndts federal-plus-state tax rate is 40%. Berndt has no debt. a. Set up an income statement. What is Berndts expected net income? Its expected net cash flow? b. Suppose Congress changed the tax laws so that Berndts depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and to net cash flow? c. Now suppose that Congress changed the tax laws such that, instead of doubling Berndts depreciation, it was reduced by 50%. How would profit and net cash flow be affected? d. If this were your company, would you prefer Congress to cause your depreciation expense to be doubled or halved? Why?consider a company with sales of $18,000.0 million, cost of goods sold of 42% of sales, other expenses including salaries ( we usually call this SG&A for selling, general and administrative) of 1750.0million, depreciation of 2250.0 million, and interest expense of 2300 million. tax rate =21%. a. generate an income statement and show net income b. what is the company's operating cash flow? c. if there are 775.2 million shares outstanding, what is the EPS? d. if the company has a payout ratio of 20%, what is the dividends per share?
- Your firm has net income of $338 on total sales of $1,420. Costs are $780 and depreciation is $120. The tax rate is 35%. The firm does not have interest expenses. What is the operating cash flow?Your firm has net income of $315 on total sales of $1,260. Costs are $700 and depreciation is $110. The tax rate is 21 percent. The firm does not have interest expenses. What is the operating cash flow?1. SSSSS’ operating income (EBIT) is P500,000. The company’s tax rate is 40 percent, and its operating cash flow is P450,000. The company’s interest expense is P100,000. What is the company’s net cash flow? (Assume that depreciation is the only non-cash item in the firm’s financial statements.) 2. Calculate a firm's free cash flow if it has net operating profit after taxes of P60,000, depreciation expense of P10,000, net fixed asset investment requirement of P40,000, a net current asset requirement of P30,000 and a tax rate of 30%
- A company has the following income statement. What is its net operating profit after taxes (NOPAT)? Round it to a whole dollar. Sales $ 1,200 Costs 600 Depreciation 170 EBIT $ ? Interest expense 50 EBT $ ? Taxes (20%) ? Net income $ ?A firm's net income is $36 million, depreciation is $3 million, its investments in fixed capital totals $13 million, its AFTER-TAX interest totals $4 million and its investment in working capital totals $5 million. The tax rate is 40%. What is its Free Cash Flow to the Firm? a.$27.00 million b. $25.00 million c. $23.40 million d. $25.40 million Give typing answer with explanation and conclusionA company has the following income statement. What is its net operating profit after taxes (NOPAT)? Round it to a whole dollar. Will need to find EBIT first. Sales $ 1,050 Costs 600 Depreciation 170 EBIT $ ? Interest expense 50 EBT $ ? Taxes (24%) ? Net income $ ?
- Assume a firm has EBAT of $590,000, and no amortization. It is in a 40 percent tax bracket. a. Compute its cash flow. $ 354,000 b. Assume it has $590,000 in amortization. Recompute its cash flow. $ 590,000 c. How large a cash flow benefit did the amortization provide? $T] Cash flow Cash flow Benefit in cash flowIncome Statement. A firm's income statement included the following data. The firm's average tax rate was 20%. (LO3-1) Cost of goods sold Income taxes paid $8,000 $2,000 Administrative expenses $3,000 Interest expense $1,000 Depreciation $1,000 a. What was the firm's net income? b. What must have been the firm's revenues? c. What was EBIT?Q5. If a firm has sales level of $299,000 with 9% profit margin before taxes and interest, while its current assets $50, 000 and fixed assets $100,000. a. Calculate the total asset turnover and rate of return on total assets before taxes. b. Also compute the before tax rate of return on assets at different levels of current assets starting with $25,000 and increasing $25,000 increments to $100,000
