Gerry Co. has a gross profit of $1,200,000 and depreciation expense of $400,000. Selling and administrative expense is $250,000. Given that the tax rate is 40 percent, compute the cash flow from operations for Gerry Co.

Answers

Answer 1

The cash flow from operations for Gerry Co is $730,000.

The following format should be considered:

Gross profit $1,200,000

Less: depreciation $400,000

Less: selling & admin expense -$250,000

EBIT $550,000

Less: taxes (40% of $550,000) $220,000

Net income $330,000

Add: depreciation expense $400,000

Cash flow from operations $730,000

Therefore we can conclude that The cash flow from operations for Gerry Co is $730,000.

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Related Questions

What type of appliances are technicians certified to charge and open after passing the Type I examination?

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Answer:

Appliances containing 5 pounds or less of refrigerant that have been hermetically sealed and charged at the factory.

appliances that have been hermetically sealed and charged at the manufacture and contain 5 pounds or less of refrigerant.

What is Type I examination?

1. EU type-examination is the process by which a notified body determines and certifies that a device, including its technical documentation, pertinent life cycle processes, and an associated representative sample of the device production planned, satisfies the pertinent requirements of this Regulation.

2. The EPA has created four different certifications: in order to maintain tiny appliances (Type I). except for small appliances and MVACs, for the maintenance or disposal of high- or extremely high-pressure appliances (Type II). For maintaining or getting rid of low-pressure equipment (Type III).

Appliances of Type I are hermetically sealed. This denotes that internal components are both airtight and sealed against the elements. Consider this to be your phone. Your phone's internal circuitry and other components are enclosed in a tidy device.

Thus, appliances that have been hermetically sealed

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what is 6.3% of 4334?​

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Answer:The final answer would be 273.042Hope this helps!! <3

Hi ;-)

[tex]6,3\%=6,3\%:100\%=0,063\\\\6,3\% \ of \ 4334=0,063\cdot4334=\boxed{273,042}[/tex]

What are new guidelines issued by GAAP for consolidating entities

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Consolidation Rules Under GAAP

The general rule requires consolidation of financial statements when one company’s ownership interest in a business provides it with A MAJORITY OF the voting power- meaning it controls more then 50% of the voting shares

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Answers

Answer:

B - bachelor’s degree or apprenticeship

Explanation:

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Briefly explain the weaknesses of the RSA's Industrial Development Zones?

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Revenue losses because of the various tax exemptions and incentives.Many traders are interested in SEZ, so that they can acquire at cheap rates and create a land bank for themselves.The number of units applying for setting up EOU's is not commensurate to the number of applications for setting up SEZ's leading to a belief that this project may not match up to expectations.

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Answer:

syntific mamagement loss it relevance its relevs today it will might today it will not lost revalance

You bought two new CDs with the last $30 in your checking account, and your next payday is on Monday. What is the opportunity cost of these CDs?"
Group of answer choices

the satisfaction of knowing you are the first of your friends to have these CDs

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the $30 check that you wrote for the CDs

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Answer:

the $30 check that you wrote for the cds

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Answers

Explanation:

when it comes to Nigeria think oil

it's a very big oil country

how the looting of shops and malls will affect business in terms of the relationship between social responsibility and triple bottom line

Answers

The looting of shops and malls will affect business in terms of social and triple bottom line relationship.

Triple bottom line is a business concept in  which businesses focus and look for the impact on social and environment by their business activities.

If a shop or mall is looted it will have great impact on environment and social relationship.

The businessmen will feel insecure in the state and will be afraid of investing more money into business.

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Answers

Answer:

true

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It should be noted that demand curve shows the graphical relationship between price and services as well as quantity demanded.

What is a demand curve?

The demand curve can be regarded as  economic graphical representation ,which display relationship between the price and quantity demanded.

This demand curve is very crucial in economics because it helps in economic analysis.

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