This year, Southern Coat Company had sales of £730,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were £580,000, £105,000 and £135,000 respectively. In addition, the company had an interest expense of £75,000 and a tax rate of 28 per cent. (Ignore any tax loss carry-back or carry-forward provisions.) Required: If spending on non-current assets and net working capital was zero, and if no new shares were issued during the year, what do you know about the firm’s long-term debt? (Round your answer to the nearest whole.) Minimum amount of new long-term deb

This year, Southern Coat Company had sales of £730,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were £580,000, £105,000 and £135,000 respectively. In addition, the company had an interest expense of £75,000 and a tax rate of 28 per cent. (Ignore any tax loss carry-back or carry-forward provisions.) Required: If spending on non-current assets and net working capital was zero, and if no new shares were issued during the year, what do you know about the firm’s long-term debt? (Round your answer to the nearest whole.) Minimum amount of new long-term deb

Name: This year, Southern Coat Company had sales of £730,000. Cost of goods
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Description: This year, Southern Coat Company had sales of £730,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were £580,000, £105,000 and £135,000 respectively. In addition, the company had an interest expense of £75,000

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 11P: The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are...

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This year, Southern Coat Company had sales of £730,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were £580,000, £105,000 and £135,000 respectively. In addition, the company had an interest expense of £75,000 and a tax rate of 28 per cent. (Ignore any tax loss carry-back or carry-forward provisions.) a- What is Southern Coat Company’s net income? Net income b - What is its operating cash flow? Operating cash flow
Benson, Inc., has sales of $44830, costs of $14,370, depreciatior and interest expense of $2,390. The tax rate if 23 percent. What is the operating cash flow, or OCF?
The annual revenue, expenses, and depreciation for a company are $130,000; 32,000; and $12,000, respectively. What is the after-tax cashflow if the effective income tax rate is 23%? O a. $75,460 O b. $66,220 O c. $63,460 O d. $78,220 O e. $19,780
During 2020, Raines Umbrella Corp. had sales of $940, 000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $680,000, $85,000, and $165,000, respectively. In addition, the company had an interest expense of $53, 000 and a tax rate of 21 percent. (Assume that interest is fully deductible.) a. What was the company's net income or net loss for 2020? (Do not round intermediate calculations. Input your answer as a positive value.) b. What was its operating cash flow? (Do not round intermediate calculations.)
During the year, Pharr Corporation had sales of $459,000. Costs were $388,000 and depreciation expense was $102,800. In addition, the company had an interest expense of $79.250 and a tax rate of 21 percent. What is the operating cash flow for the year? Ignore any tax loss carry-forward provisions. Multiple Choice $72,733 $77,768 O $15,071
Penketh Ltd has operating profit for the year ended 30 June 2021 of £20,900, after charging depreciation of £2,500, exceptional expenses of £5,000 and making a profit on the disposal of a machine of £2,000. The balance sheet shows the following changes over the year: Trade receivables: increase by £2,500 Inventories: increase by £2,700Trade payables: decrease by £3,000 What is the net cash from operating activities? a) £25,900 b) £13,200 c) £28,400 d) £18,700
Oak Ltd has operating profit for the year ended 30 June 2021 of £20,900, after charging depreciation of £2,500, exceptional expenses of £5,000 and making a profit on the disposal of a machine of £2,000. The balance sheet shows the following changes over the year:Trade receivables: increase by £2,500Inventories: increase by £2,700Trade payables: decrease by £3,000What is the net cash from operating activities?a) £25,900b) £13,200c) £28,400d) £18,700
Consider the following information from the Income Statement of Production Ltd. on 31st December 2022 (accounting year-end): Operating profit equals £30,000 and depreciation expense equals £2,000. In addition, consider the following information from the Statement of Financial Position of Production Ltd.: Trade Receivables Trade Payables 31st December 2021 31st December 2022 £ £ 2,500 9,000 32,000 12,000 Additional information: • Tax paid on cash during the current accounting year amounts to £12,500 • Gain on asset disposal equals £1,000. Considering all the previous information from Production Ltd., which of the following statements is true on 31st December 2022? O a. Production Ltd. shows a negative net cash flow from operating activities which equals -£8,000. O b. Production Ltd. shows a positive net cash flow from operating activities which equals £3,000. O c. The net cash flow from operating activities equals £0 O d. None of the answers is true.
Jannah Company has sales of P1,000,000, cost of goods sold of P700,000, depreciation expenses of P250,000 and interest expenses of P55,000. If Jannah’s tax rate is 34% and the income statement is complete, what is Jannah's operating cash flow?
The 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?
Talbot Enterprises recently reported an EBITDA of $8 million and net income of $2.4 million. It had $2.0 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization?
Jannah Company has sales of P1,000,000, cost of goods sold of P700,000, depreciation expenses of P250,000 and interest expenses of P55,000. If Jannah's tax rate is 34% and the income statement is complete, what is Jannah's operating cash flow? A. P246,700 B. P283,000 C. P33,000 D. P300,000