1. The following financial information is available for Hero Sports Ltd.: Sales : $45,000 Costs : $25,000 Addition to retained earnings : $5,500 Dividends paid : $900 Interest expense : $1,450 Tax rate : 40% Compute the depreciation expense.
1. The following financial information is available for Hero Sports Ltd.:
Sales : $45,000
Costs : $25,000
Addition to
Dividends paid : $900
Interest expense : $1,450
Tax rate : 40%
Compute the
2. In response to customer complaints about rising prices of food items,
a supermarket responds by making the following offer:
For every $10 of purchase, the customers will earn $1 worth of coupons
and this way they will end up making twice as much as the supermarket.
If the supermarket makes $500 worth of total sales to all customers
taken together, how much will it need to restrict its costs to so as
to honour the offer
3. Use the following information to answer the question that follow:
Net Income : $205,000
Profit margin : 7.80%
A/R : $151,642
Credit sales : 60% of total sales
Compute the days’ sales in receivables
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