During 2012, Raines Umbrella Corp. had sales of $ 630,000. Cost of goods sold, administrative and selling
Question:
During 2012, Raines Umbrella Corp. had sales of $ 630,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $ 470,000, $ 95,000, and $ 140,000, respectively. In addition, the company had an interest expense of $ 70,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.)
a. What is Raines’s net income for 2012?
b. What is its operating cash flow?
c. Explain your results in (a) and (b).
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 68% (19 reviews)
Income Statement Sales 630000 COGS 470000 AS expenses 95000 ...View the full answer
Answered By
Somshukla Chakraborty
I have a teaching experience of more than 4 years by now in diverse subjects like History,Geography,Political Science,Sociology,Business Enterprise,Economics,Environmental Management etc.I teach students from classes 9-12 and undergraduate students.I boards I handle are IB,IGCSE, state boards,ICSE, CBSE.I am passionate about teaching.Full satisfaction of the students is my main goal.
I have completed my graduation and master's in history from Jadavpur University Kolkata,India in 2012 and I have completed my B.Ed from the same University in 2013. I have taught in a reputed school of Kolkata (subjects-History,Geography,Civics,Political Science) from 2014-2016.I worked as a guest lecturer of history in a college of Kolkata for 2 years teaching students of 1st ,2nd and 3rd year. I taught Ancient and Modern Indian history there.I have taught in another school in Mohali,Punjab teaching students from classes 9-12.Presently I am working as an online tutor with concept tutors,Bangalore,India(Carve Niche Pvt.Ltd.) for the last 1year and also have been appointed as an online history tutor by Course Hero(California,U.S) and Vidyalai.com(Chennai,India).
4.00+
2+ Reviews
10+ Question Solved
Related Book For
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
Question Posted:
Students also viewed these Corporate Finance questions
-
[10 marks] Let X, Y, Z be random variables such that X is a standard normal random variable, that is X~ conditional on X ~ N(0, 1) x, Y is a normal random variable with mean x and variance 1, Y~...
-
In addition, the company incurs selling and administrative expenses of $250,150. The company wishes to assign these costs to its three major retail customers, The Warehouse, Kosmo Co., and Supply...
-
Xenix Corp had sales of $353,866 in 2014. If management expects its sales to be $476,450 in three years, what is the rate at which the company's sales are expected to grow?
-
Use a calculator to obtain solutions correct to the nearest hundredth in Problems 4954. 0.02x +0.831x + 0.0069 = 0
-
After testing 12 homes for the presence of radon, an inspector is concerned that her test equipment is defective because the measured radon level at each home was higher than the reading at the...
-
What are some of the factors that make it a real challenge for conflicting parties to develop a collaborative relationship and engage in integrative negotiation?
-
We consider automobile injury claims data using data from the Insurance Research Council (IRC), a division of the American Institute for Chartered Property Casualty Underwriters and the Insurance...
-
1. Identify the pros and cons of a JIT relationship from a suppliers point of view. 2. Identify the pros and cons of a JIT relationship from a buyers point of view. 3. What factors should Dixon and...
-
Suppose that the market premiums for the K = 35 APR and JUL puts are $8.38/share and $7.38/share, respectively. These premiums present an opportunity for an arbitrage profit strategy because the JUL...
-
It is October 16, 2020, and you have just taken over the accounting work of Saskan Enterprises, whose annual accounting period ends each October 31. The company?s previous accountant journalized its...
-
Corporation Growth has $ 86,000 in taxable income, and Corporation Income has $ 8,600,000 in taxable income. a. What is the tax bill for each firm? b. Suppose both firms have identified a new project...
-
In Problem 18, suppose Raines Umbrella Corp. paid out $ 34,000 in cash dividends. Is this possible? If spending on net fixed assets and net working capital was zero, and if no new stock was issued...
-
The accountant of Hook, Line and Sinker, a partnership of seven people, has asked your advice in dealing with the following items in the partnership accounts for the year to 31 May 2017. (a) (i)...
-
A life insurance company knows with certainty that all people will die someday. Does it make sense for the insurance company to use probability theory to set its life insurance rates?
-
What is the probability of obtaining a head in one toss of a fair coin? What is the probability of rolling a 5 in one roll of a fair die? What is the probability of tossing a head and rolling a 5?
-
A top amateur bowler has a 70 % chance of roiling a strike. What is the probability that this bowler will bowl a perfect game (12 strikes in a row)? Are there any assumptions we need to make to...
-
Consider the sample space S = {A, B, C, D, E, F, G} and the following events: Are the following sets of events mutually exclusive, collectively exhaustive, both, or neither? I = {A, C, E, G} II = {B,...
-
The figure below is a plot of salary and experience of employees of the Endicott Company. Answer the following questions by using a Venn diagram. (a) The probability of experience between 3 and 5...
-
Use data from Appendix D to estimate (a) The normal boiling point of mercury and (b) The vapor pressure of mercury at 25 C. TABLE D.1 Ground-State Electron Configurations Element Configuration Z Z 1...
-
l ask this second time correnct answer is 38,01 can we look pls Consider a non-conducting rod of length 8.8 m having a uniform charge density 4.5 nC/m. Find the electric potential at P, a...
-
Suppose you want to create a price index for the price of a personal pizza across several Canadian university campuses, as of March 1 , 201 6. The data are as follows: a. Using Calgary as the "base...
-
Bond Prices versus Yields a. What is the relationship between the price of a bond and its YTM? b. Explain why some bonds sell at a premium over par value while other bonds sell at a discount. What do...
-
Treasury Bonds the following Treasury bond quote appeared in The Wall Street Journal on May 11, 2004: Why would anyone buy this Treasury bond with a negative yield to maturity? How is this possible?...
-
Stock Valuation why does the value of a share of stock depend on dividends?
-
Discuss the merits of the each standard (2g, 3g & 4g), including the advantages and disadvantages of each with respect to planning , deployment and the services they are able to provide.
-
Consider a dataset with the following 7 data points: {(3, +1), (2,+1), (-1,-1), (0,-1), (+1,-1), (+2, +1), (+3, +1)} Consider mapping these points to 2 dimensions using the feature vector (x) = (x,...
-
You borrow $3,500 and will pay back the entire amount in 5 years. You are charged 9 percent interest per year. How much interest do you pay on this loan?
Study smarter with the SolutionInn App