Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please choose the correct answer of the attached problem set During 2014, Eagle Beach Company EBC) had sales of $1,000,000, cost of goods sold of
please choose the correct answer of the attached problem set
During 2014, Eagle Beach Company EBC) had sales of $1,000,000, cost of goods sold of $600,000, administrative and selling expenses of $95,000, depreciation expense of $140,000 and interest expense of $70,000. The tax rate is 35 percent. Ignore any tax loss carryback or carry forward provisions. What is the operating cash flow for EBC? $226,250 $247,250 $271,500 If UARE, Inc. has sales of 5000, total assets of 1310, a debt to equity ratio of 1.2 and a return on equity of 15 percent, what is UARE's net income? 750.00 89.32 1301.18 A firm has net income of 123,000, profit margin of 10.0%, accounts receivables of 100,000 and a percentage of sales on credit of 75 percent. What is the firm's days sales I receivables? 39.57 days 29.67 days 296.75 days Elddir, Inc. has net income of net income of 15000, a tax rate of 34%, interest expense of 4500 and deducted depreciation expense of 3500. What is Elddir's cash coverage ratio? 6.05 6.83 11.58 During 2014, Eagle Beach Company EBC) had sales of $1,000,000, cost of goods sold of $600,000, administrative and selling expenses of $95,000, depreciation expense of $140,000 and interest expense of $70,000. The tax rate is 35 percent. Ignore any tax loss carryback or carry forward provisions. What is the operating cash flow for EBC? $226,250 $226,250 You Answered $247,250 $247,250 Do not forget to subtract interest expense prior to calculating taxes. Correct Answer $271,500 If UARE, Inc. has sales of 5000, total assets of 1310, a debt to equity ratio of 1.2 and a return on equity of 15 percent, what is UARE's net income? 750.00 89.32 1301.18 A firm has net income of 123,000, profit margin of 10.0%, accounts receivables of 100,000 and a percentage of sales on credit of 75 percent. What is the firm's days sales I receivables? 39.57 days 29.67 days 296.75 days Elddir, Inc. has net income of net income of 15000, a tax rate of 34%, interest expense of 4500 and deducted depreciation expense of 3500. What is Elddir's cash coverage ratio? You Answered 6.05 6.05 Incorrect. You need to add deprecation back to EBIT prior to dividing by the interest expense. To calculate EBIT first calculate EBT by dividing net income by (1 tax rate), then add in interest, add in depreciation, then divide by interest expense. Correct Answer 6.83 6.83 11.58 During 2014, Eagle Beach Company EBC) had sales of $1,000,000, cost of goods sold of $600,000, administrative and selling expenses of $95,000, depreciation expense of $140,000 and interest expense of $70,000. The tax rate is 35 percent. Ignore any tax loss carryback or carry forward provisions. What is the operating cash flow for EBC? $226,250 $226,250 You Answered $247,250 $247,250 Do not forget to subtract interest expense prior to calculating taxes. Correct Answer $271,500 If UARE, Inc. has sales of 5000, total assets of 1310, a debt to equity ratio of 1.2 and a return on equity of 15 percent, what is UARE's net income? 750.00 89.32 1301.18 A firm has net income of 123,000, profit margin of 10.0%, accounts receivables of 100,000 and a percentage of sales on credit of 75 percent. What is the firm's days sales I receivables? 39.57 days 29.67 days 296.75 days Elddir, Inc. has net income of net income of 15000, a tax rate of 34%, interest expense of 4500 and deducted depreciation expense of 3500. What is Elddir's cash coverage ratio? You Answered 6.05 6.05 Incorrect. You need to add deprecation back to EBIT prior to dividing by the interest expense. To calculate EBIT first calculate EBT by dividing net income by (1 tax rate), then add in interest, add in depreciation, then divide by interest expense. Correct Answer 6.83 6.83 11.58Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started