Question
The MME Company produces and sells bicycles. In 2015 the company sold 48,100 bicycles for $68 .25 each.Direct labor is $22.55 per bicycle and material
The MME Company produces and sells bicycles. In 2015 the company sold 48,100 bicycles for
$68 .25 each.Direct labor is $22.55 per bicycle and material is $24.75.In addition, $128,050 was
paid for indirect laborand$26,000waspaidforutilities.The company has outstanding debt of
$650,000 at an average interest rate of 15%. The corporate tax rate is 38%. Last year the net income for the MME Company was $350,000.
a.Calculate the depreciation expense for 2015.
b.How much money (cash) does the company have?
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Investing In Financial Research A Decision Making System For Better Results
Authors: Cheryl Strauss Einhorn, Tony Blair
1st Edition
1501732757, 9781501732751
