What will the operating cash flow be if output falls

Assignment Help Financial Management
Reference no: EM13915251

At an output level of 15,400 units, you have calculated that the degree of operating leverage is 2.00. The operating cash flow is $58,000 in this case. Ignoring the effect of taxes, what are fixed costs? What will the operating cash flow be if output rises to 16,400 units. What will the operating cash flow be if output falls to 14,400 units? Please show steps.

Reference no: EM13915251

Questions Cloud

Direct and indirect method : Prepare statement of cash flows using the direct and indirect method.
Workers at a wage : A firm can hire 10 workers at a wage of $10 but has to pay a wage of $12 to ALL workers to get the 11th worker. What is the marginal cost of adding the 11th worker.
Closed the revenue expense and dividend accounts : Inman Co. completed the following transactions in 2013, the first year of operation:
The application of knowledge to an actual organisation : This assignment is an exercise in the application of knowledge to an actual organisation and the compilation and presentation of the findings in the format of a sophisticated report - well edited, attractive, and professionally laid out and academica..
What will the operating cash flow be if output falls : At an output level of 15,400 units, you have calculated that the degree of operating leverage is 2.00. The operating cash flow is $58,000 in this case. Ignoring the effect of taxes, what are fixed costs? What will the operating cash flow be if output..
Expansion project-requires initial fixed asset investment : Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.49 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be w..
How are assets liabilities common stock retained earnings : Define debit and credit. How are assets, liabilities, common stock, retained earnings, revenues, expenses, and dividends affected (increased or decreased) by debits and by credits?
How is the balance of an account determined : How is the balance of an account determined?
What was the capital gains yield : Suppose a stock had an initial price of $80 per share, paid a dividend of $1.35 per share during the year, and had an ending share price of $87. What was the capital gains yield?

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate Debt ratio and equity ratio

Binomial Tree Farm’s financing includes $7 million of bank loans. Its common equity is shown in Binomial’s Annual Report at $6.87 million. It has 500,000 shares of common stock outstanding, which trade on the Wichita Stock Exchange at $16 per share. ..

  Prepared to make monthly payments

You’re prepared to make monthly payments of $240, beginning at the end of this month, into an account that pays 9 percent interest compounded monthly. How many payments will you have made when your account balance reaches $63,000?

  Determine the cash inflows and outflows for each year

Determine the cash inflows and outflows for each year - evaluate the capital project by calculating the following metrics.

  What is the depreciation tax shield for this project in year

Your firm needs a machine which costs $290,000, and requires $44,000 in maintenance for each year of its 5 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 5-year class life category. Assume a tax rate of 30% ..

  What types of business transactions add to the balances

Place yourself in the role of one of the following stakeholders in a company: an investor, a creditor, or a manager. Summarize the information you would look for on each of the four basic financial statements, and explain why that information is pert..

  Financial strategies, capital budgeting analysis

MBA 612, Financial Strategies, Capital Budgeting Analysis, Word Report and PowerPoint Presentation

  No dividends will be paid on the stock

Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next eleven years, because the firm needs to plow back its earnings to fuel growth. The company will then pay a dividend of $15.00 per share 12 yea..

  Standard deviation of the portfolio return

Mr. Jones has a 2-stock portfolio with a total value of $400,000. $300,000 is invested in Stock A and the remainder is invested in Stock B. If standard deviation of Stock A is 12.65%, Stock B is 21.55%, and correlation between Stock A and Stock B is ..

  Financial statements-research one publicly traded company

You will research one publicly traded company.

  Graduates earn same returns in future as in the past

Zora and Nelson, who are recent graduates of the prestigious MBA program at Meredith College, have each received $10,000 as graduation gifts. Zora and Nelson share the same birthday and they are both 30 years old. If the two graduates earn the same r..

  What are expected return and risk of the portfolio delta

The portfolio Alpha has an expected return of 18.50% and risk of 60%. The portfolio Gamma has an expected return of 11.75% and risk of 30%. The risk of market portfolio is 40%. Assume that the Capital Asset Pricing Model holds, what are the expected ..

  Describe the competition in the overnight package delivery

Describe the competition in the overnight package delivery industry, and the strategies by which those two firms are meeting the competition. What are the enabling and inhibiting factors facing the two firms as they pursue their goals? Do you think t..

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!

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