Carla Vista Chemicals management identified the following cash flows as significant in its year-end meeting with analysts: During the year Carla Vista had repaid existing debt of $313,400 and raised additional debt capital of $649,200. It also repurchased stock in the open market for a total of $44,170. What is the net cash provided by financing activities

$291,630

Explanation:

The computation of the net cash provided by financing activities is shown below:

Cash flow from financing activities

Less: Existing debt repaid -$313,400

Add: Raised additional debt capital $649,200

Less: Repurchased stock in the open market - $44,170

Net cash provided by financing activities $291,630

We added the additional debt capital and the rest items are deducted

7.6

Explanation:

Degree of operating leverage (DOL) = contribution margin / operating income

- contribution margin = sales - variable cost = [(1900 x $50) - (1900 x $50 x 20%)] = $95,000 - $19,000 = $76,000

- operating income = contribution margin - fixed expenses = $76,000 - $66,000 = $10,000

DOL = $76,000 / $10,000 = 7.6