User Account

All Pages

What are the effects on cash flow

Assignment Help Managerial Accounting
Reference no: EM132746969

Question - A project currently generates sales of $18 million, variable costs equal 60% of sales, and fixed costs are $3.6 million. The firm's tax rate is 35%. Assume all sales and expenses are cash items.

Required -

a. What are the effects on cash flow, if sales increase from $18 million to $19.8 million?

b. What are the effects on cash flow, if variable costs increase to 70% of sales?

Reference no: EM132746969

Questions Cloud

Find what is the cost per finished unit of job : Find what is the cost per finished unit of Job 009? The rework costs were attributable to the exacting specifications of the customer.
Experiencing decline in business because of competition : Your company is experiencing decline in business because of competition.
Appreciation of domestic currency : How contractionary monetary policy leads to the appreciation of domestic currency. Explain.
What is the dividend yield of the stock : If a stock you buy is $50 per share and pays $2 per year in total dividends; what is the dividend yield of the stock?
What are the effects on cash flow : A project currently generates sales of $18 million, variable costs equal 60% of sales, and fixed costs are $3.6 million. What are the effects on cash flow
Find which statement is correct concerning job-order costing : Find which statements is correct concerning job-order costing? Job-order costing is mainly used in firms with homogeneous products such as oil refineries.
How is the value of any asset be determined : You are vice president of Money Management and in charge of pension fund division. A major new client, AA Berhad has requested Money Management
Remaining discussion is about evaluating : We are done with our discussions during this term. The remaining discussion is about evaluating this course.
Find the market value of the bonds using semiannual analysis : Cox Media Corporation pays an 11 percent coupon rate on debentures that are due in 25 years. Find the market value of the bonds using semiannual analysis

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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