-Genetic Insights Co. purchases an asset for $11,482. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, respectively. Genetic Insights has a tax rate of 30%. The asset is sold at the end of six years for $3,930.

 Calculate book value of an asset. Round the answer to two decimals.

2- The Poseidon Swim company produces swim trunks. The average selling price for one of their swim trunks is $49.47. The variable cost per unit is $26.95 Poseidon Swim Average Fixed per year Of $59,275.

  

3-Irresistible Chips is reviewing its financial condition. The firm generated an operating profit of $5,775,706. The firm's interest expense was $2,642,195.

What will be the resulting percentage change in earnings per share if they expect operating profit to change 8.6 percent? 

Round the answer to two decimals

 

4- El Dorado Storage has the following projections for Year 1 of a capital budgeting project.

Sales $253,909

Variable costs $112,729

Fixed costs adn selling, general and administrative expenses $10,564

Depreciation Expense $21,204

Tax Rate 35%

Calculate the operating cash flow for Year 1. Round the answer to two decimals

5- Haunted Forest, Inc.is selling fog machines.

Use the following information about Haunted Forest, Inc. to Answer the following questions.

Average selling price per unit $343.

Variable cost per unit $200

Units sold 360

Fixed costs $17,247

Interest expense $3,725

 Based on the data above, what is the degree of total (combined) leverage of Haunted Forest, Inc.?

 

Round the answer to two decimals

Answer rating: 100% (QA)

Book value of the asset after 6 years of depreciation can be calculated as Year 1 depreciation 11482 ... View the full answer