Can you please give answer? Consider the following condensed Income Statement:2004SalesCOGS$8,000,0006,500,000Gross Profit 1,500,000Sales growth in 2005 is expected to be 15%. If COGSis assumed to vary directly with sales, then Gross Profitfor 2005 will be

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Answered: Consider the following condensed Income…

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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Answer
Consider the following information that you propose to use to obtain an estimate of year 2004 EPS for the MacLog Company. Estimated Year 2019 Year 2020 GDP 11,000 Billion GDP growth 3.5% Sales per share $800 Operating profit margin 12% Depreciation/Fixed Assets 14% Fixed asset turnover 2 Interest rate 3.5% Total asset turnover 0.7 Debt/Total assets 45% Tax rate 36% In addition, a regression analysis indicates the following relationship between growth in sales per share for MacLog, and GDP growth is %Δ Sales per share = 0.015 + 0.75(%Δ GDP) Refer to Exhibit 9.6. Calculate the firm's level of Total Assets per share for the year 2020. a. $1,385.77 b. $1,113.58 c. $1,050.65 d. $1,065.67 e. $1,190.06
on the pro forma income statement sales are expected to increase by 23%. If the net margin is expected to increase by 18% and net profit last year was 100 million, what is the net profit projected to be? A) 118 million. B)123 million. C )158 million D) 141 million
None
Solution
Forecast the next year Income Statement using the base year and growth rates. Use all formulas, not numbers. Sales Cost of Sales Gross Margin Operating Expenses R&D Operating Profit Interest Expense Income before taxes Income Taxes Net Income Base Year Forecast Growth rate 100 888898 50 50 20 10 20 4 16 4 12 20% 15% 15% 25% 100% 25% RATE
The following partial income statement data pertains to Tatum Toy Company's recent year completed and its forecast for the coming year (in millions): Recent $875.00 Sales Operating costs EBIT Interest expense EBT What was the expected percentage change in sales? a. 20% b. 16% c. -20% d. 55% e. 83% 625.00 $250.00 50.00 $200.00 Projected $1,050.00 682.50 $367.50 50.00 $317.50
Suppose a firm has had the following historic sales figures. What would be the forecast for next year's sales using the average approach? Year: 2009 2010 2011 2012 2013 Sales $1,500,000 $1,750,000 $1,400,000 $2,000,000 $1,600,000
Suppose a firm has had the following historic sales figures. Year: 2009 2010 2011 2012 2013 Sales $3,300,000 $3,550,000 $3,200,000 $3,800,000 $3,400,000 What would be the forecast for next year's sales using the average approach? Next year's sales
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 $1,770,000 What would be the forecast for next year's sales using regression to estimate a trend? Next year's sales
Use the table for the question(s) below. FCF Forecast ($ million) Year Sales 1 270 12.5% 32.40 Less: Income Tax (37%) (6.48) Less Increase in NWC (12% of Change in Sales) 3,60 Free Cash Flow 22.32 Growth versus Prior Year EBIT (10% of Sales) 0 240 OA. $4.27 OB. $7.47 OC. $12.8 OD. $5.12 2 290 7.4% 34.80 (6.96) 2.40 25.44 ACCE 3 310 6.9% 37.20 (7.44) 2.40 27.36 Banco Industries expect sales to grow at a rapid rate over the next 3 years, but settle to an industry growth rate of 4% in year 4. The spreadsheet above shows a simplified pro forma for Banco Industries. Banco industries has a weighted average cost of capital of 10%, $30 million in cash, $60 million in debt, and 18 million shares outstanding. If Banco Industries can reduce its operating expenses so that EBIT becomes 12% of sales, by how much will its stock price increase? 4 325.5 5.0% 39.06 (7.81) 1.86 29.388
I need to find which year had the better performance . if : this years information : returns 8% with net sales of 756,000 last years information: returns 11.5% with gross sales of 875,000

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Consider the following condensed Income Statement: 2004 Sales COGS $8,000,000 6,500,000 Gross Profit 1,500,000 Sales growth in 2005 is expected to be 15%. If COGS is assumed to vary directly with sales, then Gross Profit for 2005 will be