User Account

All Pages

How much free cash flow did was generate

Assignment Help Financial Accounting
Reference no: EM132950033

Problem 1: Wells water systems recently reported $8250 of sales and 950 of operating cost other than depreciation and $950 of depreciation. The company had no amortization charges it had $3250 of outstanding bond that carry a 6.75% interest rate, and it's federal plus state income tax rate was 35%. In order to sustain it's operation and those generate sales in cash flows in the future the firm was required to spend $250 to buy new fixed assets and to invest $250 and that's operating working capital. how much free cash flow did was generate?

A. 1880
B. 2270
C.2020
D. 1630
E. 1770

Reference no: EM132950033

Questions Cloud

By how much would the ROE change : By how much would the ROE change in response to the change in the capital structure? What conclusion can be drawn about the management of ROE from here
Which is correct for the talley corporation : Which of the following is correct? The Talley Corporation had a taxable income of $150,000 from operations after all operating costs
What are net present values of expected future cash flows : On the basis of the current value of business as of January 1, 2021, what are the net present values of the expected future cash flows
Determine the minimum number of customers per year : The annual revenues are estimated at $15 per customer. Determine the minimum number of customers per year that would result in accepting the project.
How much free cash flow did was generate : How much free cash flow did was generate? Wells water systems recently reported $8250 of sales and 950 of operating cost other than depreciation
What is the net amount to be presented : What is the net amount to be presented in the Statement of Comprehensive Income for the period ended 2018
What is the effect of this erroe is under ias : If the accounting staff erroneously omitted to recognize depreciation expense at the end of an accounting period, this will result in
Why is retrospective treatment of a change in accounting : The company changed its deprecation method from straight line method to the double declining balance method. Which should be reported?
Find the amount of research and development costs : Materials used in research and development projects P 450,000. Find the amount of research and development costs charged to Hall's 2011 income statement

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare journal entries in all funds journals-transactions

Prepare journal entries in all Funds journals and/or Activity journal for the related transactions provided. The following transactions occurred for the City of Fontaine’s General Fund. The budget prepared for the fiscal year included Total estimated..

  Evaluate cash flow from investing activities

Which of the following statements is correct with respect to determining cash flow from investing activities? Assume that the equipment purchase

  Enter the given in the three column cash book

Enter the following in the three-column cash book of an office supply shop. Balance-off the cash book at the end of the month and show the discount accounts in the general ledger.

  Make the journal entries to record the transactions

July 10 Received payment from MJ Company for the July 1 sale. Make the journal entries to record the above transactions using Gross Method

  Last year brinkman company had 20000 units in its ending

last year brinkman company had 20000 units in its ending inventory. in this current year brinkmans variable production

  Application of intra-period income tax allocation

On December 31, 20X0, Greer Co. entered into an agreement to sell its Hart segment's assets. On that date, Greer estimated the gain from the disposition of the assets in 20X1 would be $700,000 and Hart's 20X1 operating losses would be $200,000. When ..

  What are the basic benefits for company to develop pro forma

What are the basic benefits and purposes for a company to develop pro forma statements and a cash budget? What key factors go into developing

  What is the amount of research and development costs

The equipment has no alternative future use. What is the amount of research and development costs that should be charged to income in 2014?

  Create a journal entry from this transaction

Received a check as payment in full of the November 24 invoice from customer Robert Wise (11330). The $25,500 invoice on this sale was number U2000. Remember, the wholesale division of Uptight Tools offers credit terms of 2/15, n/30 to all retail cus..

  What the amount that corsetti would have to invest today

What The amount that Corsetti would have to invest today, assuming an interest rate of 6% compounded semiannually, in order to reach her goal is

  Record the new asset from the exchange

Evaluate Chi s cost to record the new asset from the exchange - Chi Corporation trades an asset by a book value of $20,000 for another asset with a fair market value of $15,000.

  Make the statement of changes in equity for the company

Prepare the statement of changes in equity for this company for the year ended 30 June 2020. Land was revalued by $800 000 during the year.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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