Sheryl’s Shipping had sales last year of $15,000. The cost of goods sold was $7,500, general and administrative expenses were $2,000, interest expenses were $1,500, and depreciation was $2,000. The firm’s tax rate is 30%.

a. What are the earnings before interest and taxes?

b. What is net income?

c. What is cash flow from operations?

  1. 👍
  2. 👎
  3. 👁
  1. Earnings before interest and taxes $ 1500

    Net income $650

    Cash flow from operations 1650

    Operating cash flow is calculated by a relatively simple equation:EBIT (earnings before interest and taxes)+ Depreciation- Taxes.

    1. 👍
    2. 👎

Respond to this Question

First Name

Your Response

Similar Questions

  1. accounting

    On October 31, a flood at Payne Company’s only warehouse caused severe damage to its entire inventory. Based on recent history, Payne has a gross profit of 25 percent of net sales. The following information is available from

  2. accounting

    A company has an overhead application rate of 125% of direct labor costs. How much overhead would be allocated to a job if it required total direct labor cost of $20,000? $5,000. $16,000. $25,000. $125,000. $250,000. The R&R

  3. Finance

    ) What is your Average Payment Period if your Accounts Payable are $20,000, cost of Goods Sold is $200,000, and Sales are $500,000?

  4. Fundamentals of finance

    "Genatron wants to estimate what will happen to its income before interest and taxes if its net sales change from the 2012 level of $1,500,000. Refer to Genatron’s 2012 income statement below, where the income before interest

  1. accounting

    The following information is available for ABC Company for the year ended December 31, 1997: Ending Inventory …………………………. $7,500 Purchases …………………………………. 31,000 Transportation-in

  2. Trial Balance

    Given the following balances, the total debits in the trial balance would equal: Equipment $ 37,000 Accounts Payable 2,000 Sales 49,000 Accumulated Depreciation 4,000 Accounts Receivable 7,000 Retained Earnings 16,000 Salary

  3. accounting

    Fill in the blanks in the following separate income statements a through e. Identify any negative amount by putting it in parentheses. a b c d e Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $60,000

  4. Accounting

    The beginning inventory of Merchandise at Waldo Co. and data on purchases and sales for a three-month period are as follows: Date Transaction Number of Units Per Unit Total March 3 Inventory 60 $1500 $90,000 8 Purchase 120 1800

  1. accounting

    P20-2A For the year ended December 31, 2010, the job cost sheets of DeVoe Company contained the following data. Job Number Explanation Direct Materials Direct Labor Manufacturing Overhead Total Costs 7640 Balance 1/1 $25,000

  2. accounting

    Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. Halifax only makes credit sales. The company began 2013 with an allowance for

  3. finance

    New project analysis You must evaluate a proposal to buy a new milling machine. The base price is $108,000, and shipping and installation costs would add another $12,500. The machine falls into the MACRS 3-year class, and it would

  4. accounting

    Capwell Corporation uses a periodic inventory system. The company's ending inventory on December 31, 2011, its fiscal-year end, based on a physical count, was determined to be $326,000. Capwell's unadjusted trial balance also

You can view more similar questions or ask a new question.