Changes in net income as result of change in depreciation

Assignment Help Financial Management

Reference no: EM131520756

A firm’s sales = $20 million, operating costs other than depreciation = $12 million, and depreciation = $2.00 million. It had $8 million of bonds outstanding (long term debt) with a 5.0% interest rate, and its tax rate = 40%. This year's data will remain unchanged except depreciation. In the new year, depreciation will increase by $0.50 million. Calculate the changes in net income as a result of the change in depreciation, in millions.

Reference no: EM131520756

Questions Cloud

Record acceptance of note receivable for terrell-associate : On March 1, Terrell & Associates provides legal services to Whole Grain Bakery regarding some recent food poisoning complaints. Legal services total $10,000.

Why does hughes start crying at the end of story : Hughes Discussion Why does Hughes start crying at the end of story? Was he really ready to be saved? How does his aunt describe what it is like to be saved

Prepare and define each planned capital expenditure : Prepare and define each planned capital expenditure. Prepare an executive summary along with a separate document showing the calculations.

What do you think should be highest goal of any government : What do you think should be the highest goal (the most important job) of any government? Explain your answer and give examples or evidence.

Changes in net income as result of change in depreciation : Calculate the changes in net income as a result of the change in depreciation, in millions.

Specific program student learning outcome : Signature/Benchmark Assignments are designed to align with specific program student learning outcome(s) in your program.

Discuss the acceptance of each of the notes receivable : On April 1, LeBron provides services to a customer on account. The customer signs a four-month, 9% note for $6,000.

How does angelou use of description affect her essay : How does Angelou's use of description affect her essay? How did it compare to Flavio's Home

How can the study of the holy bible help : How can the study of the Holy Bible help you understand ideas of traditional morality?

User Account

All Pages