TDL Corporation generated sales of 900 bicycles at a selling price of $900 each. The fixed...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
TDL Corporation generated sales of 900 bicycles at a selling price of $900 each. The fixed costs are $300,000 and variable costs per unit are $550. Assume that variable costs and fixed costs are both cash costs. The annual depreciation of the machinery is $100,000. Calculate the annual operating cash flow if the corporate tax rate is 34%. TDL Corporation generated sales of 900 bicycles at a selling price of $900 each. The fixed costs are $300,000 and variable costs per unit are $550. Assume that variable costs and fixed costs are both cash costs. The annual depreciation of the machinery is $100,000. Calculate the annual operating cash flow if the corporate tax rate is 34%.
Expert Answer:
Answer rating: 100% (QA)
To calculate the annual operating cash flow we need to consider the revenue costs and taxes Revenue ... View the full answer
Related Book For
Managerial Accounting An Introduction to Concepts Methods and Uses
ISBN: 978-0324639766
10th Edition
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil
Posted Date:
Students also viewed these finance questions
-
If the annual fixed costs are 54,000 dinars, the occupation expense represents 20%, the contribution margin is 25%, and the unit selling price is 40 dinars. Required: Calculate the closing point of...
-
The Doral Company manufactures and sells pens. Present sales output is 5,000,000 units per year at a selling price of $0.60 per unit. Fixed costs are $1,080,000 per year. Variable costs are $0.36 per...
-
The Chorus Company manufactures and sells pens. Present sales output is 5,000,000 units per year at a selling price of $0.60 per unit. Fixed costs are $1,080,000 per year. Variable costs are $0.36...
-
Big bang Pty (Ltd) is a company which is involved in sale of manufacturing goods. The company had the following income and expenses for the year of assessment: R15 000 for the collection of debts...
-
What is the full electron configuration for? (a) Selenium (Se), (b) Gold (Au), (c) Radium (Ra)?
-
T Wholesale Company began the year with inventory of \($8,000.\) During the year, T purchased \($90,000\) of goods and returned \($6,000\) due to damage. T also paid freight charges of \($1,000\) on...
-
In a study to determine the relationship between ambient outdoor temperature and the rate of evaporation of water from soil, measurements of average daytime temperature in C and evaporation in...
-
Flanagan Company reports the following for the month of June. Instructions(a) Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO and (2) LIFO.(b) Which costing method...
-
Name five expectations that employees often have of their leader (supervisor). Question 3 (Mandatory) (7 points) What limits the leader from using motivational theories to their fullest? (100 word...
-
Laval produces lighting fixtures. Budgeted Information for Its two production departments follows. The departments use machine hours (MH) and direct labor hours (DLH). Overhead cost Direct labor...
-
T F 23. The full cross-sectional area of cellular metal floor raceway may be used if AC cable is used. 24. Luminaires that are designed to be supplied by direct current shall be for DC operation. 25....
-
Assume that 80,000 shares of common stock were authorized by the board of directors, 60,000 shares were issued and there are now 5,000 shares of Treasury Stock. If the board of directors declares a...
-
Solve the following equations: +20 10-2(x-4)=4(x+2)-10 x+5=4-2(2x+3)
-
11) In a hypothetical experiment a student is required to evaluate the result for the speed of an object: v = (+M. m *** (). R The data collected by the student, gravity (g) being a constant, is: m =...
-
P3.1. Determine if the following incomes are subject to basic tax, fringe benefit tax or exempt from tax by putting a check mark in the column provided below. If the value of the benefit is provided,...
-
The inventory data for an item for November are: Nov. 1 Inventory 21 units at $20 4 Sale 11 units 10 Purchase 30 units at $22 17 Sale 19 units 30 Purchase 23 units at $24 Using a perpetual system,...
-
What ethical considerations arise from philosophical debates ?
-
Sandcastles, Inc.s management has recently been looking at a proposal to purchase a new brick molding machine. With the new machine, the company would not have to buy bricks. The estimated useful...
-
Plantcare, Inc., is a garden care service. The company originally specialized in serving residential clients but has recently started contracting for work with larger commercial clients. Ms....
-
What advantages do audits provide?
-
Mark Landman's accountant resigned and left the books in a mess. Mark is trying to compute unknown values in inventory accounts in three of his stores. Knowing of your expertise in cost flows, he...
-
Answer the following questions for the cited articles of the Principles of Professional Conduct. a. Responsibilities (Article 1). To which three groups do CPAs have responsibilities? b. The Public...
-
What is the difference between the two following sec- tions of the Rules of Professional Conduct? a. Interpretations of the Rules. b. Ethics Rulings.
-
Describe the purpose of each of the following Rules of Professional Conduct. a. 101-Independence. b. 102-Integrity and Objectivity. c. 201-General Standards. d. 202-Compliance with Standards. e....
Study smarter with the SolutionInn App