What is the amount of the operating cash flow

Assignment Help Financial Management
Reference no: EM13885452

Hot and Cold has annual sales of $982,000, annual depreciation of $127,000, and net working capital of $243,000. The tax rate is 34 percent and the profit margin is 6 percent. The firm has no interest expense. What is the amount of the operating cash flow?

Reference no: EM13885452

Questions Cloud

Compute the cash collections from sales for each month : The following is the sales budget for Segura, Inc., for the first quarter of 2013: January February March Sales budget $139,000 $156,000 $171,000 Credit sales are collected as follows:  Compute the cash collections from sales for each month from Janu..
More sensitive to interest rates : A thrift has an annual CGAP of -$25 million. A credit union has an annual CGAP of +$5 million. The thrift has total assets of $500 million and net income of $7.5 million and the credit union has total assets of $40 million and net income of $0.7 mill..
Set up private cemetery business : The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking up." As a result, the cemetery project will provide a net cash inflow of $87,900 for the firm during the first year, and th..
Account that pays nominal interest rate : Suppose that on January 1 you deposit $100 in an account that pays a nominal (or quoted) interest rate of 11.33463%, with interest added (compounded) daily. How much will you have in your account on October 1, or 9 months later?
What is the amount of the operating cash flow : Hot and Cold has annual sales of $982,000, annual depreciation of $127,000, and net working capital of $243,000. The tax rate is 34 percent and the profit margin is 6 percent. The firm has no interest expense. What is the amount of the operating cash..
What distinguishes a hedge fund from other types of funds : What distinguishes a hedge fund from other types of funds?
About the after-tax cost of debt : Handy Dandy Inc is preparing to calculate its cost of debt. It presently has debt outstanding that pays $ 81 per year in interest and has seven years left unto maturity. The current market value of those bonds is $ 1,090. The company pays 35% in taxe..
BEA is considering change in capital structure : Beckman Engineering and Associates (BEA) is considering a change in its capital structure. BEA currently has $20 million in debt carrying a rate of 8%, and its stock price is $40 per share with 2 million shares outstanding. What is BEA's unlevered be..
Fix sum of payments to the beneficiary for a fee : In what type of contract does an insurance company agree to pay a fix sum of payments to the beneficiary for a fee?

Reviews

Write a Review

Financial Management Questions & Answers

  Expected rate of return from this investment opportunity

James Fromholtz is considering whether to invest in a newly formed investment fund. Based on these potential outcomes, what is your estimate of the expected rate of return from this investment opportunity? I know this is 22.5%. Calculate the standard..

  Calculating the number of payments

You’re prepared to make monthly payments of $200, beginning at the end of this month, into an account that pays 6.1 percent interest compounded monthly. How many payments will you have made when your account balance reaches $11,000?

  Requirement for a code of ethics in the civil service

Requirement for a Code of Ethics in the Civil Service

  Effective annual rate-what is the duration of the bond

A CD matruing after 6 months with a par of one million dollars paying an interest rate of 1.5% annually, will have an Effective Annual Rate (EAR) of: A bond has 2 year maturity with 5% coupon rate paid semiannually. If the current market interest rat..

  What is the total risk-weighted-assets for credit risk

How much Tier 1 and Tiear 2 capital is required? How does this compare with the capital required under the Basel II standardized approach and under Basel I?

  What is the market value of the bond

A fourteen-year bond, with par value equals $1,000, pays 10% annually. If similar bonds are currently yielding 9% annually, what is the market value of the bond? Use semi-annual analysis.

  What is the price of the bond

Cisco has issued an 7%, 20-year bond with a par value of 1000$ that pays interest quarterly. If the yield to maturity 8.5%, what is the price of the bond?

  Semiannual coupon bond matures

An 7% semiannual coupon bond matures in 4 years. The bond has a face value of $1,000 and a current yield of 7.4185%. What is the bond's price? What is the bond's YTM?

  Fast-growing firm recently paid dividend

A fast-growing firm recently paid a dividend of $0.60 per share. The dividend is expected to increase at a 20 percent rate for the next four years. Afterwards, a more stable 12 percent growth rate can be assumed. If a 13.5 percent discount rate is ap..

  1 consider the following information about the

1. consider the following information about the characteristics of two securities a and b the market portfolio m and

  What is the after-tax operating cash flow

The company C is considering the acquisition of a new machine that will last for 20 years. The machine costs $500,000 and belongs to CCA class 8 (CCA rate : 20%). The machine would require an investment in net working capital of $25,000 in year 1.

  Without tax-key condition for equilibrium to occur in market

The key condition for equilibrium to occur in a market is: Without taxes, the market price per bag of apples is $5. With a $2 tax per bag of apples, buyers now pay $5.75 per bag. What is the final price per bag of apples received by sellers?

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