Solution-What is the company net income

What is the company net income

Reference no: EM131066525

During 2015, Rainbow Umbrella Corp. had sales of $700,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $500,000, $110,000, and $75,000, respectively. In addition, the company had an interest expense of $86,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.)

a. What is the company's net income for 2015? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.)

b. What is its operating cash flow? (Do not round intermediate calculations.)

Reference no: EM131066525

Questions Cloud

What would the remaining balance be on loan in year three : Parker-Miller Health Care Systems borrows $200,000 from Ashesprings National Bank to finance a new piece of ultrasound equipment. PMHC has agreed, according to the terms of the loan, to make 5 equal installment payments at the end of each of the next..

Failure of lehman brothers on money markets : 1. What was the impact of the near failure of Bear Stearns and the failure of Lehman Brothers on Money Markets?

Choosethree specific environmental influences : For this assignment you will create an informational newsletter. This newsletter will inform teenagers, or young adults, about environmental influences that could threaten a developing fetus.

Purchase of a new piece of equipment : Company X is considering the purchase of a new piece of equipment to be used in their manufacturing plant. The equipment will cost $6,000 and will increase annual cash inflow by $2,200.

What is the company net income : What is the company's net income for 2015? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.)

What is the firm cost of equity if its debt cost : The Hatfields Corporation is a zero growth firm with an expected EBIT of $250,000 and corporate tax rate of 40 percent. Hatfields uses $1,000,000 of debt financing, and the cost of equity to an unlevered firm in the same risk class is 15%. a) What is..

All the equity used is from reinvested earnings : Quinlan Enterprises stock trades for $50 per share. It is expected to pay a $2.50 dividend at year end (D1 = $2.50), and the dividend is expected to grow at a constant rate of 5.50% a year. The before-tax cost of debt is 7.50%, and the tax rate is 40..

Company incremental operating cash flow : Also, Company Y will have to pay 3% commissions to sales team to promote and sell the product. Given that depreciation expense equals $2000, and its tax rate is 36%, what is the company' s incremental operating cash flow?

Summarize call provisions and sinking fund provisions : Summarize call provisions and sinking fund provisions. Explain how these types of provisions individually make bonds more or less risky for a) an investor, and b) the issuer.

User Account

All Pages

What is the company net income

Reference no: EM131066525

Reference no: EM131066525

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Short-term bank debt currently costs 6 percent and it is

What is the present value of your bank account

Dividend was 240 per share expected to grow at 6 per year

What are abnormal returns ar and cumulative abnormal

Levine inc is considering an investment that has an

Youre young and have an investment plan that emphasizes

What are the expected cash receipts for march

Julie is bowwing 12800 to purchase a car the loan terms are

What will the new stock price be

Make a income statement pro forma

You are considering the purchase of an industrial warehouse

Determine the criteria to rank capital budgeting decisions

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT