Which of the following is not reported as an operating expense on the income statement? a. Salaries expense b. Rent expense c. Interest expense d. Advertising expens | Homework.Study.com (2024)

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• Which of the following is a non-cash expense? A. Administrative salaries B. Packaging costs C. Depreciation expenses D. Interest expense
• Which of the following expenses would not appear in Mallcentral's cash budget? a. Depreciation expense b. Marketing expense c. Interest expense d. Wages expense
• A firm has an operating profit of $120,000 after deducting lease payments of $20,000. Interest expense is $40,000. What is the firm's fixed charge coverage? a. 6.00x b. 2.33x c. 2.00x d. 3.00x
• What is the survival revenues breakeven based on the following: Administrative expenses = $200,000; Marketing expenses = $180,000; Depreciation expenses = $100,000; and Interest expenses = $20,000; an
• Which of the following would be found on a company's income statement? I. cost of goods sold II. interest expense III. cash flow from operations IV. earnings before taxes A. I, II, and III only B. I, II, III, and IV C. I an IV only D. I, II, and I
• Which of the following is not included in computing EBT (earnings before taxes)? a Depreciation expense b Marketing expenses c Dividends d Cost of goods sold
• Would the following item be included in presenting the cash flow from operating activities section of the statement of cash flows? Add-back interest expense of $290
• Which of the following statements is true? a. The degree of pretax cash flow operating leverage remains same for any level of revenue. b. The higher the proportion of fixed costs to variable costs i
• Which of the following is always a non-cash expense? a) salaries b) depreciation c) income taxes d) none of the above
• Which of the following is an element of budgeted financial requirements that is not included in budgeted expenses? A. Interest expense B. Increases in working capital C. Labor expense D. Both A and B. E. None of the above.
• Which of the following statements is correct for a firm in which depreciation expense exceeds EBIT? The firm: A. will have a net loss. B. will have no income-tax liability. C. needs to lower its interest expense. D. can still have a positive net income.
• Saved Pompeil, Inc, has sales of $49,000, costs of $22.600, depreciation expense of $2,150 and interest expense of $1,900. If the tax rate is 21, what is the operating cash flow, or OCF? Do not round
• Which of the following should not be included as investment costs in evaluating a capital asset? A. Employee training expenses B. Interest payments and other financing cash flows that result from ra
• Which of the following are correct methods for computing the operating cash flow of a project assuming that the interest expense is equal to zero? I. EBIT + Depreciation - Taxes II. EBIT - Deprecia
• Which of the following is an example of a deferral (or prepaid) adjusting entry? a). Recording the usage of office supplies during the period. b). Recording salaries expense for employees not yet paid. c). Recording revenue that has been earned but not
• If a firm has $6,940 in earnings before interest and taxes, $650 in depreciation expense, and $2,120 in taxes, what is the firm's operating cash flow? a. $4,120 b. $6,240 c. $5,470 d. $9,710
• Southpark, Inc. had income before interest and taxes or $24.000, paid $4,000 in interest expense and $6,000 for operating lease expenses. What is the firm's fixed charge coverage? A. 3 B. 4 C. 5 D. 6
• Which of the following is an example of earned income? A. Capital gains B. Interest C. Welfare payments D. Self-employment income
• Consider the following short income statement (in millions): Operating income before taxes $100 Interest expense before taxes 10 Tax expense 25 Net income $65 The statutory tax rate is 35 percent. a. What is the effective tax rate on net income before ta
• The pro forma income of THX company is $2,335, based on an interest expense of $750. After reviewing the company's balance sheet, you determine that interest expense should be $975 instead. What will be the effect of using $975 as interest expense on the
• Prather, Inc., has sales of $14,200, costs of $5,600, depreciation expense of $1,200, and interest expense of $680. If the tax rate is 35%, what is the operating cash flow, or OCF?
• What is the 1 year operating cash flow? Sales $33,000 Depreciation $10,000 Other operating costs $17,000 Interest expense $4,000 Tax rate 35%
• An enterprise recently reported an EBITDA of $8 million and a net income of $2.4 million. It had $2.0 million in interest expenses, and the corporate tax rate was 40%. What was it's charge for depreci
• Which of the following statements is correct? a. Prepaid Expenses are decreased with a debit. b. Unearned Revenue is increased with a debit. c. Rent Expense is increased with a credit. d. Accounts Pay
• Which of the following is an example of earned income? a. Welfare payments b. Interest c.Capital gains d. Self employment income
• Ridiculousness, Inc., has sales of $47,500, costs of $20,500, depreciation expense of $1,800, and interest expense of $1,300. If the tax rate is 35 percent, what is the operating cash flow, or OCF?
• Ridiculousness, Inc., has sales of $42,000, costs of $20,300, depreciation expense of $1,900, and interest expense of $900. If the tax rate is 35 percent, what is the operating cash flow, or OCF?
• Ridiculousness, Inc., has sales of $42,500, costs of $23,800, depreciation expense of $2,000, and interest expense of $1,300. If the tax rate is 35 percent, what is the operating cash flow, or OCF?
• Ridiculousness, Inc., has sales of $43,000, costs of $25,100, depreciation expense of $1,500, and interest expense of $1,500. If the tax rate is 35 percent, what is the operating cash flow, or OCF?
• Ridiculousness, Inc., has sales of $49,000, costs of $26,000, depreciation expense of $1,500, and interest expense of $1,800. If the tax rate is 35 percent, what is the operating cash flow, or OCF?
• Ridiculousness, Inc., has sales of $44,500, costs of $24,100, depreciation expense of $1,800, and interest expense of $1,400. If the tax rate is 35 percent, what is the operating cash flow, or OCF? (D
• Ridiculousness, Inc., has sales of $40,000, costs of $20,000, depreciation expense of $1,500, and interest expense of $800. If the tax rate is 35 percent, what is the operating cash flow, or OCF?
• Hailey, Inc., has sales of $19,720, costs of $9,310, depreciation expense of $1,980, and interest expense of $1,470. Assume the tax rate is 40%. What is the operating cash flow, or OCF? (Do not round
• Sheaves, Inc., has sales of $48,000, costs of $22,200, depreciation expense of $2,050, and interest expense of $1,800. If the tax rate is 24 percent, what is the operating cash flow, or OCF?
• Which of the following statements is CORRECT? a. Depreciation is not a cash charge, so it does not have an effect on a firm's reported profits. b. People sometimes talk about the firm's cash flow,
• Which of the following statements does not properly describe the accrual basis of accounting? A. Expenses are recognized when incurred regardless of the timing of cash flows. B. Revenues are recognized when earned regardless of the timing of cash flows.
• Hailey, Inc., has sales of $19,720, costs of $9,310, depreciation expense of $1,980, and interest expense of $1,470. Assume the tax rate is 40 percent. What is the operating cash flow, or OCF? (Do not
• Hailey, Inc., has sales of $19,570, costs of $9,460, depreciation expense of $2,130, and interest expense of $1,620. Assume the tax rate is 35 percent. What is the operating cash flow, or OCF?
• Bigtime corporation has sales of $14,900, costs of $5,800, depreciation expense of $1,300 and interest expense of $780. If the tax rate is 40%, what is the operating cash flow?
• Under the direct method, which of the following items must be added to operating expenses reported on the income statement to determine cash payments for operating expenses? A. increase in accrued expenses B. decrease in prepaid expenses C. increase in in
• Peter?s Boats has sales of $760,000 and a profit margin of 5%. The annual depreciation expense is $80,000. What is the amount of the operating cash flow if the company has no interest expense? $34,00
• Accounting: Income and Cash flow Statement Reviewing the income statement and cash flow statement from KRJ Enterprises, you find the following items: Net income of $808 million interest expense of $141 million tax expense of $386 million cash flow from
• Ravings Incorporated recently reported net income of $5.4 million. Its operating income (EBIT) was $15 million, and its tax rate was 40%. What was the company's interest expense?
• Hailey, Inc., has sales of $38,530, costs of $12,750, depreciation expense of $2,550, and interest expense of $1,850. If the tax rate is 35%, what is the operating cash flow, or OCF?
• Income after deducting vacancy that is available to pay expenses is referred to as: (A) Potential gross income (B) Effective gross income (C) Net operating income (D) Before-tax cash flow
• Which of the following is not an activity reported in the cash flow financial statement? a. operating b. investing c. manufacturing d. financing
• Which of the following historical financial data is the LEAST relevant for framing projections and performing LBO analysis? a. Sales growth b. EBIT and EBITDA margins c. Interest expense d. Capex
• Which one of the following statements is correct? A. Invoice price = Flat price - Accrued Interest B. Invoice price = Flat price + Accrued Interest C. Flat price = Invoice price + Accrued Interest D. Invoice price = Settlement price - Accrued Interest
• Compute a schedule of deductible expenses related to the following hobby: Income $23,000 Mortgage interest and property taxes allocable to hobby $12,000 Depreciation $4,000 Supplies and fees $7,000 Telephone for hobby$3,000
• Which of the following statements are true? I. The sale of land for cash would be classified as a cash inflow from an investing activity. II. The payment of interest on bonds payable is classified as a cash outflow from operating activities. A) I only B)
• Hammett, Inc., has sales of $19,740, costs of $9,290, depreciation expense of $1,960, and interest expense of $1,450. Assume the tax rate is 40 percent. What is the operating cash flow?
• Hammett, Inc., has sales of $19,600, costs of $9,430, depreciation expense of $2,100, and interest expense of $1,590. Assume the tax rate is 35 percent. What is the operating cash flow?
• Which of the following statements is CORRECT? a. Since depreciation is a non-cash charge, it neither appears on nor has any effect on the cash budget. b. The typical cash budget reflects interest pa
• Stone Sour, Inc., has sales of $16,550, costs of $5,930, depreciation expense of $1,940, and interest expense of $1,460. If the tax rate is 35 percent, what is the operating cash flow, or OCF?
• Hailey , Inc., has sales of $38,530, costs of $121,750, depreciation expense of $2,550 , and interest expense of $1,850. If the tax rate is 35 percent what is the operating cash flow , or OCF ?
• Nukin' Gnats Pest Control is trying to determine its cash flow per share. It has revenue of $50,000, $35,000 of expenses, $4,000 of depreciation and $3,000 of interest expense. The firm is in the 40%
• Benson, Inc., has sales of $38,530, costs of $12,750, depreciation expense of $2,550, and interest expense of $1,850. The tax rate is 21 percent. What is the operating cash flow, or OCF?
• Talbot Enterprises recently reported an EBITDA of $6.0 million and net income of $1.2 million. It had $1.92 million of interest expense, and its corporate tax rate was 40%. What was its charge for dep
• Talbot Enterprises recently reported an EBITDA of $7.0 million and net income of $2.1 million. It had $2.59 million of interest expense, and its corporate tax rate was 40%. What was its charge for dep
• As it would be shown on a comparative income statement, what is the change in amount for interest expense?
• The pro forma income statement is important to the overall process of constructing pro forma statements because it allows us to determine a value for A. change in retained earnings. B. gross profit. C. interest expense. D. prepaid expenses.
• For the following transaction, which item on a bank's statement of income and expenses (Report of Income) would be affected? Management expects that among a series of real estate loans recently granted the default rate will probably be close to 3 percent
• Hammett, Inc. has sales of $19,570, costs of $9,460, depreciation expense of $2,130, and interest expense of $1,620. If the tax rate is 35%, what is the operating cash flow, or OCF?
• Daniel's Market has sales of $36,000, costs of $26,400. deprecation expenses of $3,100 and interest expense of $1,500. If the tax rate is 34%, what is the operating cash flow?
• Which of the following is an example of unearned income? A. Wages B. Tips C. Interest D. Both interest and tips
• Talbot Enterprises recently reported an EBITDA of $8 million and net income of $2.4 million. It had $2.0 million of interest expense, and its corporate tax rate was 40%. What was its charge for deprec
• Kaylor Equipment Rental reported $511 in interest expense. Net income was $493 and the tax rate was 35 percent. What were earnings before interest and taxes?
• Neeley Office Supplies income statement is given below. a. What is the times interest earned ratio? b. What would be the fixed charge coverage ratio? Neeley Office Supplies Sales $200,000 Cost of good
• Talbot Enterprises recently reported an EBITDA of $6.0 million and net income of $1.5 million. It had $2.4 million of interest expense, and its corporate tax rate was 40%. What was its charge for depr
• Bullseye, Inc.'s 2008 income statement lists the following income and expenses: EBIT=$904,500 Interest expense=$87,000 Net income=$576,000 What are the 2008 Taxes reported on the income statement?
• Fill the missing numbers in the following income statement: Do not round immediate calculations. Sales 657,900 Costs 352,900 Depreciation 97,500 Requirement 2: What is the OCF? Do not round intermed
• Which of the following would not be found in a cash budget? a. interest expense. b. taxes. c. depreciation. d. all of the above would be found in a cash budget.
• Investment expenses treated as miscellaneous itemized deductions do not include: -Expenses incurred to generate tax-exempt income. -Investment interest expense. -Expenses for investment advice. -Expenses incurred to generate tax-exempt income and i
• Ridiculousness Inc., has sales of $46,000, costs of $20,900, depreciation expense of $1,500, and interest expense of $1,100. If the tax rate is 35 per cent, what is the operating cash flow, or OCF?
• Which of the following statements about the free cash flow from the firm (FCFF) approach is true? a. The costs associated with noninterest-bearing current liabilities, which are included in the firm's cost of sales and other operating expenses, are added
• Bazza Ltd has sales of $16,550, costs of $5,930, depreciation expense of $1,940, and interest expense of $1,460. If the tax rate is 30%, what is the operating cash flow (OCF)?
• Income Statement - Byron Books Inc. recently reported $6 million of net income. Its EBIT was $10.8 million, and its tax rate was 40%. What was its interest expense? [Hint: Write out the headings for a
• Barrett, Inc., has sales of $47,500, costs of $20,500, depreciation expense of $1,800, and interest expense of $1,300. If the tax rate is 35%, what is the operating cash flow, or OCF?
• Consider the following information: Sales: $950,000 Interest expense: 40,000 Variable costs: 270,000 Taxes: 84,000 Fixed costs: 400,000 If sales increase by 8%, what should be the increase in EBIT? 22
• Hammett, Inc. has sales of $19,570, costs of $9,460, depreciation expense of $2,130, and interest expense of $1,620. If the tax rate is 35 percent, what is the operating cash flow, or OCF?
• Hammett, Inc., has sales of $34,630, costs of $10,340, depreciation expense of $2,520, and interest expense of $1,750. If the tax rate is 35 percent, what is the operating cash flow, or OCF?
• INCOME STATEMENT Byron Books Inc. recently reported $9 million of net income. Its EBIT was $18.9 million, and its tax rate was 40%. What was its interest expense? [Hint: Write out the headings for a
• Hammett, Inc., has sales of $19,610, costs of $9,420, depreciation expense of $2,090, and interest expense of $1,580. Assume the tax rate is 30%. Required: What is the operating cash flow?
• McDaniel and Associates reported the following amounts on its 2016 income statement: Net income = $60,500 Income tax expense = 12,100 Interest expense = 5,000 What was McDaniel s times-interest-earne
• Ridiculousness, Inc. has sales of $43,800, costs of $22,700, depreciation expense of $2,100, and interest expense of $1,600. If the tax rate is 35%, what is the Operating Cash Flow?
• Byron Books Inc. recently reported $14 million of net income. Its EBIT was $30.8 million, and its tax rate was 30%. What was its interest expense? (Hint: Write out the headings for an income statement
• Comp 1Comp 2Comp 3 Price$300,000$350,000$375,000 Effective gross income50,00055,00060,000 % operating expense50%55%54% NOI25,00030,00032,500 Consider the table above. Assume that the sub
• Benson Inc has sales of $38,530, costs of $12,750, depreciation expense of $2,550, and interest expense of $1,850. If the tax rate is 21%, what is the operating cash flow or OCF?
• Which of the following would not be needed to determine net cash provided by operating activities? a. Depreciation expense. b. Change in accounts receivable. c. Payment of cash dividends. d. Change in prepaid expenses
• Given ABC s next year EBIT of $1,100,000 and depreciation of $220,000, its capital expenditure will be $330,000. What is the free cash flow for the firm (FCFF) in the coming year if NWC is zero? The ABC s earnings before interest taxes (EBIT) was $1,000,
• Revenue is 60,000, cogs is 6,000, SGA is 10,000, depreciation expense is 10,000 assume no interest expense and a tax rate of 35%. what is the operating cash flow?
• Which of the following is NOT considered in the calculation of incremental cash flows? a) Tax saving due to increased depreciation expense. b) Interest payments if new debt is issued. c) Increased dividend payments if additional preferred stock is issu
• If the EBIT of a firm is $60,000 with an interest expense of $20,000, what is the degree of financial leverage?
• Which of the following does NOT represent cash outflows to the firm? Taxes Depreciation Interest payments Dividends
• The cash flow tax savings generated as a result of a firm's tax-deductible depreciation expense is called the ________.
• Chevelle, Inc. has sales of $39,500, depreciation expense of $1,900, other expenses of $18,400, and interest expense of $1,400. If the tax rate is 35%, what is the operating cash flow?
• Pearson Brothers recently reported an EBITDA of $17.5 million and net income of $3.3 million. It had $2.0 million of interest expense, and its corporate tax rate was 40%. What was its charge for depre
• Calculating OCF Williams, Inc., has sales of $25,300, costs of $9,100, depreciation expense of $1,700, and interest expense of $950. If the tax rate is 40%, what is the operating cash flow, or OCF?
• Amy's Gifts has sales of $2,300, Cost of Goods Sold of $600, Depreciation of $400 and Interest Expense of $100. If their tax rate is 35%, what are the net income and operating cash flow?