Calculating Projected NetIncome. A proposed newinvestment has projected salesof $585,000. Variable costs are44 percent of sales, and fixedcosts are $187,000; depreciationis $51,000. Prepare a pro formaincome statement assuming taxrate of 21 percent. What is theprojected net income?

To prepare a pro forma income statement, we need to calculate various components based on the given…

Answered: Calculating Projected Net Income. A…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 1CMA

See similar textbooks

Similar questions

Answer this financial accounting problem
A proposed new investment has projected sales of $635,000, Variable Costs are 44% of sales, and Fixed Costs are $193,000, depreciation is $54,000. Prepare a pro-forma income statement assuming a tax rate of .34%. What is the projected EBITDA, what is NET INCOME and OPERATING CASH FLOW
what is the projected net income Accounting Solution
A proposed new investment has projected sales of $515,000. Variable costs are 36 percent of sales, and fixed costs are $173,000; depreciation is $46,000. Prepare a pro forma income statement assuming a tax rate of 21 percent. What is the projected net income? (Do not round intermediate calculations.) Sales Variable costs Fixed costs Depreciation EBT Taxes Net income
Need answer
3. Find the net income
What is the operating cash flow? Give correct calculation
Calculate the Payback period (PBP) and Profitability Index (PI) of the investment and state the Pro’s and Cons of this method The annual incremental profits/ (losses) relating to the investment are estimated as follows: Years CF’s (000) Year 0 -175,000 Year 1 K11,000 Year 2 K3,000 Year 3 K34,000 Year 4 K47,000 Year 5 K8,000 Investment at the start of the project would be K175, 000,000.the investment sum assuming nil disposal value after five years, would be written off using the equal instalment method. The depreciation has been included in the profit estimates above, which should be assumed to arise at each year end. Assume the cost of Capital is 12% Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 D.f 1.00 0.893 0.797 0.712 0.636 0.567
You are given the following data for year 1; Revenue =RM 100, Fixed Costs = RM30, Total Variable costs = RM 50, Depreciation = RM10, tax rate= 30%. Calculate the after tax cash flow for the project for year 1.
A proposed new investment has projected sales of $550,000. Variable costs are 40 percent of sales, and fixed costs are $130,500; depreciation is $50,750. Prepare a pro forma income statement assuming a tax rate of 23 percent. What is the projected net income? Answer Sales Variable costs Fixed costs Depreciation EBT Taxes Net income
Help
Calculate the percentage of total return for $6800

SEE MORE QUESTIONS

Recommended textbooks for you

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Financial And Managerial Accounting

Accounting

ISBN:

9781337902663

Author:

WARREN, Carl S.

Publisher:

Cengage Learning,

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Financial And Managerial Accounting

Accounting

ISBN:

9781337902663

Author:

WARREN, Carl S.

Publisher:

Cengage Learning,

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SEE MORE TEXTBOOKS

Calculating Projected Net Income. A proposed new investment has projected sales of $585,000. Variable costs are 44 percent of sales, and fixed costs are $187,000; depreciation is $51,000. Prepare a pro forma income statement assuming tax rate of 21 percent. What is the projected net income?