A company reports the following for the past year.SalesIncomeAverage assets$ 17,650,0007,766,00035,300,000The company's CFO believes that income for next year will be $10,095,800. Average assets will be the same as the past year.1. Compute return on investment for the past year.2. If the CFO's forecast is correct, what will return on investment be for next year?Complete this question by entering your answers in the tabs below.Required 1Required 2cesCompute return on investment for the past year.Numerator:Return on InvestmentIDenominator:Return on investment

1. Compute return on investment for the past year.Numerator: /Denominator: Net Income /Average…

Answered: A company reports the following for the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Firm has the following revenues. Forecast the firm's year 4 revenue using the average annual growth rate. Year 1: $17,864. Year 2: $17,149. Year 3: $19,359.
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Ending Balance Balance Assets 138,000 334,000 572,000 806,000 398,000 246,000 $ 2,494,000 Cash 131,000 482,000 489,000 788,000 435,000 254, 000 $ 2,579,000 Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity 389,000 1,025,000 1,080,000 $ 2,494,000 341,000 1,025,000 1,213,000 $ 2,579,000 Total liabilities and stockholders' equity Joel de Paris, Inc. Income Statement $ 5,049,000 4,241,160 807,840 Sales Operating expenses Net operating income Interest and taxes: $ 125,000 202,000 Interest expense Тах expense 327,000 Net income 480,840
For the most recent year, Robin Company reports operating income of $660,000. Robin's sales margin is 7%, and capital turnover is 2.0.What is Robin's return on investment (ROI)? Question 15 options: 2% 7% 4% 14%
A company reports the following for the prior year: $1.6 million in sales $1 million in total assets $160,000 in net income $800,000 in equity (at the beginning of this prior year) $ 520,000 in current assets $480,000 in fixed assets $48,000 in accounts payable $32,000 in accrued liabilities The company projects that the sales will grow at 30%. Calculate the AFN for this company assuming 80% retention ratio.
Consider the following scenario: Blue Hamster Manufacturing Inc.'s income statement reports data for its first year of operation. The firm's CEO would like sales to increase by 25% next year. 1. Blue Hamster is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (EBIT). 2. The company's operating costs (excluding depreciation and amortization) remain at 65% of net sales, and its depreciation and amortization expenses remain constant from year to year. 3. The company's tax rate remains constant at 25% of its pre-tax income or earnings before taxes (EBT). 4. In Year 2, Blue Hamster expects to pay $200,000 and $2,280,656 of preferred and common stock dividends, respectively. Complete the Year 2 income statement data for Blue Hamster, then answer the questions that follow. Be sure to round each dollar value to the nearest whole dollar. Blue Hamster Manufacturing Inc. Income Statement for Year Ending December…
Suppose a firm has had the following historic sales figures. Year: 2009 2010 2011 2012 2013 Sales $1,420,000 $1,720,000 $1,600,000 $2,010,000 $1,770,000 What would be the forecast for next year's sales using regression to estimate a trend? Next year's sales
A company reports the following for the prior year: $1.6 million in sales $1 million in total assets $160, 000 in net income $800, 000 in equity (at the beginning of this prior year) $520, 000 in current assets $480, 000 in fixed assets $48, 000 ir accounts payable $32,000 in accrued liabilities The company projects that the sales will grow at 30 % . Calculate the AFN or this company assuming 80% retention ratio. a. $134,425 b. $127,650 c. $109,600 d. $76,950
Projected Operating Assets Berman & Jaccor Corporation's current sales and partial balance sheet are shown below. This year Sales $ 1,000 Balance Sheet: Assets Cash $ 100 Short-term investments $ 95 Accounts receivable $ 300 Inventories $ 200 Total current assets $ 695 Net fixed assets $ 550 Total assets $ 1,245 Sales are expected to grow by 12% next year. Assuming no change in operations from this year to next year, what are the projected total operating assets? Do not round intermediate calculations. Round your answer to the nearest dollar.
Subject :- Accounting
Mars Corporation is interested in estimating the expected rate of sales growth sustainability and additional financing needed to support improvements fast sales next year. Last year, revenue was $5.5 million; net profit is $500,000; investment in assets is $2,500,000; payables and accruals are $1,000,000; and shareholder equity at the end of the year is $1,500,000 (that is, the equity at the beginning of the year of $1,000,000 plus retained earnings of $500,000). The business does not pay dividends and does not expect to pay dividends in the future. a. Estimate sustainable sales growth rate for Mars Corporation based on the information provided in this issue. Include also the interpretation of the results of your calculations at point a.
You have looked at the current financial statements for J&R Homes, Company. The company has an EBIT of $2,890,000 this year. Depreciation, the increase in net working capital, and capital spending were $227,000, $92,000, and $425,000, respectively. You expect that over the next five years, EBIT will grow at 18 percent per year, depreciation and capital spending will grow at 23 percent per year, and NWC will grow at 13 percent per year. The company currently has $15.5 million in debt and 415,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 3.5 percent indefinitely. The company's WACC is 8.9 percent and the tax rate is 23 percent. What is the price per share of the company's stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Share price
Vikings Inc., is developing a pro forma income statement for the coming year. The chief financial officer estimates that sales will be $150,000,000. If gross profits are historically 36% of sales, what is the expected cost of goods sold (in dollars)? a) $36,000,000 b) $54,000,000 c) $64,000,000 d) $96,000,000 NOTE: In your Excel spreadsheet, all calculations must be included

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