Based on this information, create and solve a ratio analysis: In their most recent discussion with VP Finance, they wereinformed that total sales next year (2022) was expected to be $1,500,000. You should assume the same amount ofturnover in 2022 as there was in the past 5 years. Number of new hires and turnover by year Year New Hires Turnover2017 10 5 2018 20 7 2019 22 9 2020 25 12 2021 15 15 Sales per year Year Service Sales Product Sales 2017 $250,000 $200,000 2018 $350,000 $325,000 2019 $400,000 $450,000 2020 $550,000 $600,000 2021 $625,000 $675,000 Howmany employees need to be hired in 2022, show all calculations

The objective of the question is to determine the number of employees that need to be hired in 2022…

Answered: Based on this information, create and…

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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Philip Inc. expects their sales to increase by $900,000 next month. If their CMR is calculated as 48%, operating income of the next month would be expected to: Group of answer choices Increase by $432,000 Decrease by $468,000 Decrease by $432,000 Increase by $468,000
A) Obtain the EFN if the firm plans to have sales growth equal to 20% B) Use your fianncial model to estimate the internal growth rate
Based on table 7.3, what production capacity will Kappa require each year? When will and expansion be necessary?
Consider the following scenario: Fuzzy Button Clothing Company’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. Fuzzy Button 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 70.00% of net sales, and its depreciation and amortization expenses remain constant from year to year. 3. The company’s tax rate remains constant at 40% of its pre-tax income or earnings before taxes (EBT). 4. In Year 2, Fuzzy Button expects to pay $100,000 and $896,963 of preferred and common stock dividends, respectively. Complete the Year 2 income statement data for Fuzzy Button, then answer the questions that follow. Round each dollar value to the nearest whole dollar.
Lewellen Products has projected the following sales for the coming year: 01 02 03 04 Sales $940 $1,020 $980 $1,080 Sales in the year following this one are projected to be 20 percent greater in each quarter a. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 30 percent of projected sales for the next quarter. Assume that the company pays immediately. What is the payables period in this case? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Calculate payments to suppliers assuming a 90-day payables period. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. Calculate payments to suppliers assuming a 60-day payables period. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) a. b. Payment of accounts Payment of accounts Payment of accounts 01 02 Q3 Q4
Please explain without excel
Sexton Products has projected the following sales for the coming year: Q1 Q2 Q3 Q4 Sales $ 930 $ 1,010 $ 970 $ 1,070 Sales in the year following this one are projected to be 10 percent greater in each quarter. a. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 30 percent of projected sales for the next quarter. Assume that the company pays immediately. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Calculate payments to suppliers assuming a 90-day payables period. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g ., 32.16.) c. Calculate payments to suppliers assuming a 60-day payables period. (Do not round intermediate calculations and round your answers to 2 decimal places, e. g., 32.16.)
The table given below summarizes the 2019 income statement and end-year balance sheet of Drake’s Bowling Alleys. Drake’s financial manager forecasts a 10% increase in sales and costs in 2020. The ratio of sales to average assets is expected to remain at 0.40. Interest is forecasted at 5% of debt at the start of the year. Income Statement $ in thousands Sales $ 2,600 (40% of average assets)a Costs 1,950 (75% of sales) Interest 105 (5% of debt at start of year)b Pretax profit 545 Tax 218 (40% of pretax profit) Net income $ 327 aAssets at the end of 2018 were $6,240,000. bDebt at the end of 2018 was $2,100,000. Balance Sheet $ in thousands Net assets $ 6,760 Debt $ 2,100 Equity 4,660 Total $ 6,760 Total $ 6,760 a. What is the implied level of assets at the end of 2020? (Enter your answer in dollars not in thousands.) b. If the company pays out 50% of net income as dividends, how much cash will Drake need…
Grant Communications is forecasting its financial statements for the upcoming year. Highlights include: Current assets of $6 million Current ratio of 2.0 Sales of $20 million Inventory turnover ratio (Sales/Inventory) of 6 The company's CFO is concerned about the forecasted inventory turnover ratio. Her goal is cut inventory enough to obtain an inventory turnover ratio of X, which is the industry average, while still maintaining sales at $20 million. If the company can accomplish this goal, the cash generated from the cut in inventories will be used to cut accounts payable. This will give the firm a Quick Ratio [(Current Assets - Inventory) / Current Liabilities] of 1.50. What is X, the desired inventory turnover ratio? Enter your answer, truncated to 2 decimal places. For example, enter 7.777 as 7.77.
Armin, Inc. had the following economic data for 2019 (refer to the attached picture): What is Armin’s breakeven point in 2019? net sales 400,000 contribution margin 160,000 margin of safety 40,000
Sales SOLVE IT ON MS EXCEL or GOOGLE SPREADSHEET (please send the file) Ziegen, Inc. Income Statement for 2013 Make a Proforma Income Statement and ProForma Balance Sheet using the Financial Planning attached. Use 15% as the Sales Growth Rate of the 2013 base year, all other data remain the same. Net Income Ziegen, Inc. Balance Sheet for 2013 Current assets Net fixed assets Total Total Accounts payable Accrued expenses Notes payable Current liabilities Long-term debt Total liabilities Common stock (par) Paid-in capital Retained earnings Common equity $10,000,000 $ 500,000 $ 2,000,000 4,000,000 $ 6,000,000 $ 1,000,000 1,000,000 500,000 $ 2,500,000 2,000,000 $ 4,500,000 100,000 200,000 1,200,000 $ 1,500,000 $6,000,000 Calculation $.5m/$10m = Calculation $2m/$10m = $4m/$10m = $1m/$10m = $1m/$10m = Ziegen, Inc. Pro Forma Income % of 2013 Sales Statement for 2014 5.0% % of 2013 Sales 20.0% 40.0% 10.0% 10.0% NAª NA NA" NA" Calculation 20% Sales growth rate = Sales Net Income Ziegen, Inc. Pro…
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