Administrative and selling expenses

Assignment Help Finance Basics
Reference no: EM131833619

During the year, Belyk Paving Co. had sales of $2,350,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,295,000, $530,000, and $420,000, respectively. In addition, the company had an interest expense of $245,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.)

a. What is the company's net income?

b. What is its operating cash flow?

c. Explain your results in parts (a) and (b).

Reference no: EM131833619

Questions Cloud

Analyze a data set and write up their findings : Descriptive statistics (which includes using graphs, tables and words to describe data) and sampling (which includes the methodology for getting representative
Develop a cash budget for his latest venture : To avoid any uncertainty regarding his business' financing needs at the time when such needs may arise, Cyrus Brown wants
What types of entities get involved in each : What types of entities get involved in each? How might their goals differ?
What is the importance of music in balinese society : We will treat the film as a text, and "reading" it will give us insight intothe Balinese gamelantradition and ensemble called "Gong Kebyar."
Administrative and selling expenses : During the year, Belyk Paving Co. had sales of $2,350,000. Cost of goods sold, administrative and selling expenses, and depreciation expense
Calculate the depreciation expense : Given the following information for Sookie's Cookies Co., calculate the depreciation expense: sales = $67,000; costs = $49,200
What was the cash flow to stockholders for the year : If the company paid out $148,500 in cash dividends during 2016, what was the cash flow to stockholders for the year?
What was the company 2016 change in net working capital : The December 31, 2016, balance sheet showed current assets of $1,685 and current liabilities of $1,305. What was the company's 2016 change in net working capita
What is the addition to retained earnings : Suppose the firm in Problem 2 paid out $43,000 in cash dividends. What is the addition to retained earnings?

Reviews

Write a Review

Finance Basics Questions & Answers

  Should huffman systems add the new home alarm system

The manufacturing equipment will be sold off a the end of the eight years for $210,000, and the cost of capital for this project is 14%.

  What is a multinational corporation

What is a multinational corporation and why do firms expand into other countries? What are exchange rate risks?

  Why does the value of a share of stock depend on dividends

Financial ratio averages and analysis benefits me in understanding stock performance and valuation. Why does the value of a share of stock depend on dividends?

  Will the company''s borrowing cost increase, decrease

Suppose two firms want to borrow money from a bank for a period of one year. Firm A has excellent credit, whereas Firm B's credit standing is such that it would pay. The firm's credit standing is prime + 2 percent. The current prime rate is 6.80 perc..

  What is the residual income for each division

What is the residual income (RI) for each division if the minimum desired rate of return is: (a) 10 percent, (b) 15 percent, and (c) 20 percent?

  Why is construction financial management different

Why is construction financial management different from the financial management of other companies?

  Discuss regulations against insider trading

"Abolishing any restrictions on insider trading would make financial markets more efficient as security prices would adjust more rapidly to any new information.

  Aurand inc has outstanding bonds with an 8 annual coupon

aurand inc. has outstanding bonds with an 8 annual coupon rate paid semiannually. the bonds have a par value of 1000 a

  How much money should place in this savings account

You plan to buy the house of your dreams in 13 years. You have estimated that the price of the house will be $77,578 at that time.

  Should reynolds lease or buy the equipment

If Reynolds borrowed and bought, the bank would charge 10 percent interest on the loan. Should Reynolds lease or buy the equipment

  Calculate the nominal annual rate of interest convertible

Calculate the nominal annual rate of interest convertible monthly which is equivalent to 6.3% p.a. convertible quarterly.

  Impact of a change in a constraint coefficient

The first four questions are true and false 1. In order to tell the impact of a change in a constraint coefficient, the change must be made and then the model resolved. 2. Any change to the objective function coefficient of a variable that is positi..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd