User Account

All Pages

Administrative and selling expenses

Assignment Help Financial Management
Reference no: EM131318029

During 2015, Rainbow Umbrella Corp. had sales of $880,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $580,000, $90,000, and $135,000, respectively. In addition, the company had an interest expense of $91,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.)

Reference no: EM131318029

Questions Cloud

Contrast the drivers and role of the mrp and the drp system : Compare and contrast the role of planning/coordination and operations in improving firm competitiveness.
What is the operating cash flow : Crandall Oil has total sales of $1,190 and costs of $675. Depreciation is $151 and the tax rate is 34 percent. The firm does not have any interest expense. What is the operating cash flow?
Investor marginal tax rate : At what point would an investor be indifferent between a Bridgford corporate bond yielding 8.0 percent and a tax-free municipal bond of equal financial strength if the investor's marginal tax rate is 25 percent? (What would the equivilent Muni bo..
Calculate her debt payment-to-income ratio with-without loan : Madeline Rollins is trying to decide whether she can afford a loan she needs in order to go to chiropractic school. Right now Madeline is living at home and works in a shoe store, earning a gross income of $1,140 per month. Her employer deducts a tot..
Administrative and selling expenses : During 2015, Rainbow Umbrella Corp. had sales of $880,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $580,000, $90,000, and $135,000, respectively. In addition, the company had an interest expense of $..
Select the lettered items that indicates its effects : For each of the following numbered items, you are to select the lettered item(s) that indicate(s) its effect(s) on the corporation's statements.
Discuss the rationalization for erp implementation by firms : Discuss the major challenges a firm should expect when implementing an integrated ERP system, including financial, supply chain, service, and human resource applications.
What are some concerns with interconnectivity : What are some concerns with interconnectivity? What would you propose to smooth effective communication between countries in respect to video, voice, and data?
Producing too much air pollution : Your power plant on Gilligan’s Island is producing too much air pollution. The professor gives you three choices for dealing with this problem: You can pay a pollution tax (Carbon Offsets) onetime of $13,000,000 immediately. Common Stock -180,000 sha..

Reviews

Write a Review

Financial Management Questions & Answers

  A firms dividends payable account increased

A firm's dividends payable account increased $10,000 during the year. The firm also declared $35,000 of dividends. What is the complete disclosure in the direct method SCF for these events?

  What is the apples-to-apples organic growth

Gulf Aviation generates $800 million per year, with no material growth.  The consolidated revenues for DefenseCo are $1.5 billion in Year 1, $1.8 billion in Year 2 (the year of the acquisition), and $2.5 billion in Year 3.  If DefenseCo closed the ac..

  Expansion project-requires an initial fixed asset investment

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.64 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be w..

  What are the incremental earnings in the second year

CathFoods will release a new range of candies which contain anti-oxidants. New equipment to manufacture the candy will cost $2 million, which will be depreciated by straight-line depreciation over five years. If CathFood's marginal tax rate is 35%, w..

  Find the breakeven cash inflow for each project

Break even cash inflows and risk: Blair gasses and Chemicals is a supplier of highly purified gasses to semiconductor manufacturers. Blair is considering one of two plant designs. Blair will be the exclusive supplier for the subsequent 5 years. Find ..

  What would be cyclones estimated cost of equity

Cyclone Software Co. is trying to establish its optimal capital structure. Its current capital structure consists of 40% debt and 60% equity; however, the CEO believes the firm should use more debt. The risk-free rate, rRF, is 6%; the market risk pre..

  Stock expects the future free cash flows

You are working on the valuation for an upcoming IPO. The company that wants to sell its stock expects the following future free cash flows (FCF, in millions of dollars): -6 in year 1, 9 in year 2, 16 in year 3, and cash flows are expected to grow st..

  Excess short-term cash in particular money market investment

The treasurer of a large corporation wants to invest $45 million in excess short-term cash in a particular money market investment. The prospectus quotes the instrument at a true yield of 3.65 percent; that is, the EAR for this investment is 3.65 per..

  What is your expected rate of return for sumter stock

You can purchase one share of Sumter Company common stock for $80 today. You expect the price of the common stock to increase to $85 per share in one year. The company pays an annual dividend of $3.00 per share. What is your expected rate of return f..

  The dauten toy corporation currently uses an injection

the dauten toy corporation currently uses an injection molding machine that was purchased 2 years ago.nbsp this machine

  Current market price of stock reflects its intrinsic value

The stock of Nogro Corporation is currently selling for $20 per share. Earnings per share in the coming year are expected to be $5. The company has a policy of paying out 50% of its earnings each year in dividends. Assuming the current market price o..

  What is this employee benefit worth to you today

Your employer contributes $75 a week to your retirement plan. Assume that you work for your employer for another 20 years and that the applicable discount rate is 7.5 percent. Given these assumptions, what is this employee benefit worth to you today?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd