Author Question: Last year, Michelson Manufacturing reported $23,150 of sales, $7,500 of operating costs other than ... (Read 25 times)

awgagawg · **on:** Aug 7, 2023

Last year, Michelson Manufacturing reported $23,150 of sales, $7,500 of operating costs other than depreciation, and $3,350 of depreciation. The company had no amortization charges, it had $4,500 of bonds outstanding that carry a 7% interest rate, and its combined federal and provincial income tax rate was 37%. This year’s data are expected to remain unchanged except for one item, depreciation, which is expected to increase by $865. By how much will the depreciation change cause the firm’s net after-tax income and its net cash flow to change? Assume for this question that the company uses the same depreciation calculations for tax and shareholder reporting purposes.

◦

–$524.63; $309.84

◦

–$536.18; $313.01

◦

–$544.95; $320.05

◦

–$552.75; $341.02

koswald · **Reply #1 on:** Aug 7, 2023

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 44% of students answer this correctly