The depreciation expense is 36000 a year and the fixed

Assignment Help Finance Basics
Reference no: EM13570158

The Stop Shoppe currently sells blue jeans and T-shirts. Management is considering adding fleece tops to its inventory to provide a cooler weather option. The tops would sell for $29 each with expected sales of 6,000 tops annually. By adding the fleece tops, management feels the firm will sell an additional 975 pairs of jeans at $49 a pair and 400 fewer T-shirts at $12 each. The variable cost per unit is $28 on the jeans, $7 on the T-shirts, and $16 on the fleece tops. The depreciation expense is $36,000 a year and the fixed costs are $58,000 annually. The tax rate is 35 percent. What is the project's operating cash flow?

Reference no: EM13570158

Questions Cloud

For five 5 of the following ten 10 terms give a concise two : answer both part i and part ii of the exam.part ifor five 5 of the following ten 10 terms give a concise two to four
The controller of steam straighteners has just finished a : the controller of steam straighteners has just finished a draft of the companys year-end financial statements. he is
The premium from a capitation agreement whereby a hospital : for each of the following items indicate where it would appear in the statement of operations for a private
You have 15000 you want to invest for the next 40 years you : you have 15000 you want to invest for the next 40 years. you are offered an investment plan that will pay you 8 percent
The depreciation expense is 36000 a year and the fixed : the stop shoppe currently sells blue jeans and t-shirts. management is considering adding fleece tops to its inventory
What is the economic order quantity eoq for a firm that : what is the economic order quantity eoq for a firm that sells 5000 units when the cost of placing an order is 5 and
Assume that steves division is operating at full capacity : steve murningham manager of an electronics division was considering an offer by pat sellers manager of a sister
Mary has a three-stock portfolio and is interested in : mary has a three-stock portfolio and is interested in estimating its overall return next year. she has 25000 invested
Prcentage-of-completion method lo5-5 in 2013 the westgate : percentage-of-completion method lo5-5 in 2013 the westgate construction company entered into a contract to construct a

Reviews

Write a Review

Finance Basics Questions & Answers

  Suppose the exchange rate between us dollars and swiss

suppose the exchange rate between u.s. dollars and swiss francs is sf 1.41 1.00 and the exchange rate between the u.s.

  Which is the best example of a financial metric

Which of the following is the BEST example of a financial metric?

  What is the operating cash flow based on this analysis

The company is conducting a sensitivity analysis on the sales price using a sales price estimate of $755. What is the operating cash flow based on this analysis?

  Briarcrest condiments is a spice-making firm recently it

briarcrest condiments is a spice-making firm. recently it developed a new process for producing spices. the process

  What is the company fixed operating costs

A company reports that if it's sales are $80,000, EBIT = $8,000, net income = $2,400, DOL = 2.5, and DFL = 2.0(a) What is the company's fixed operating costs? (b) What will the company's net income be if sales turn out to be $88,000 rather than $8..

  What is the after tax cost of this capital express your

a company facing a tax rate of 40 has an outstanding issue of 300000 shares of preferred stock with a 71 par value. the

  In which ratios would each group be most interested

If we divide users of ratios into short-term lenders, long-term lenders, and stockholders, in which ratios would each group be most interested, and for what reasons?

  If 7 percent is the discounted rate what is the present

the state lotterys million dollar payout provides for 1.4 million to be paid in 25 installments of 56000 per payment.

  Find the beta coefficients

I understand that B is at more risk but not understanding what the formula would be to come up to the rM and beta coefficients of A and B.

  Estimation of company cost of capital

Discuss how to and then perform a quantitative analysis and subsequently recommend the optimal capital structure mix for Berkshire Hathaway Inc. based on a 20 percent increase in assets.

  You have been assigned to estimate the cost of installing

1. there are three and only three paths through a network project each with a probability of completion in less than 24

  Universal parts company is considering a bond issue instead

universal parts company is considering a bond issue instead of using its credit line to fund projects a and b. the

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