Cullumber Company is considering two alternatives. Alternative A will have revenues of $147,300 and costs of $101,600. AlternativeB will have revenues of $185,100 and costs of $122,800. Compare Alternative B to Alternative A showing incremental revenues,costs, and net income. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)RevenuesCostsNet Income+AAlternativeA☑ is better thanAAlternativeB$Net IncomeIncrease (Decrease)$

Step 1: Calculation of incremental revenue.Incremental revenue = Revenue of alternative B - Revenue…

Answered: Cullumber Company is considering two…

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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Coronado Company is considering two alternatives. Alternative A will have revenues of $146,300 and costs of $101,000. Alternative B will have revenues of $187,100 and costs of $124,900. Compare Alternative A to Alternative B showing incremental revenues, costs, and net income. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Alternative A Alternative B Net Income Increase (Decrease) $ $ Revenues Costs $ Net Income $ is better than $ $
Please answer very fast then i ll upvote Calculate EBIT. Revenue 1,061,751.0 Cost of sales 690,135.0 Selling, general and administration 53,087.0 Other income 11,796.0 Operating income 330,325.0 Interest expense 19,874.0 Profit before tax 310,451.0 Tax expense 46,500.0 Net income 263,951.0 The footnotes mention the following: Cost of sales includes inventory write off costs 39,677.0 Cost of sales includes distribution costs 120,458.0 SG&A includes corporate restructuring expenses 15,570.0 Responses 385,572.0 275,078.0 330,325.0 506,030.0
a. Fill in the missing numbers in the following income statement: Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g. 32. Sales Costs Depreciation EBIT Taxes (21%) Net income $ 544,300 349,300 97,300 b. What is the OCF? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g. 32. b. OCF c. Depreciation tax shield c. What is the depreciation tax shield? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g. 32.
then the gross profit margin M = M(G, T) is given by the formula M = GT. Use functional notation to express the gross profit margin for a company that has a gross profit of $355,000 and a total revenue of $510,000
a. Present a cost-profit-volume analysis that shows the effect of adding the $8,500 annual premium to the company's fixed costs by showing current and revised CVP Income Statements. Include a column to the right of each income statement where each line item is expressed as a percentage of sales (called a common size income statement). b. Visualize the changes to net income in a chart. c. Advise the company using your quantitative support and qualitative. reasoning as to whether the company should purchase the insurance. A-Float Pools Company Income Statement (Pools Maintenance Div.) For the Year Ended December 31, 2022 In Sales (2,000 clients) Cost of Services Gross profit Operating expenses Selling Administrative Net Income $165,000 $225,000 $1,100,000 627,000 $473,000 $390,000 $83.000
R (X) = 55x and C (x) = 30x + 250 for total revenue and total cost functions a-) profit function pi (x) for firms and b-) Find the breakeven point.
Fill in the missing numbers for the following statement of comprehensive income. (Input all amounts as positive values. Omit $ sign in your response.) Sales Costs Depreciation EBIT Taxes (34%) Net income Calculate the OCF. OCF $ What is the CCA tax shield? CCA tax shield 733,500 503,300 89,400
a. Fill in the missing numbers in the following income statement: Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g. 32. Sales Costs Depreciation EBIT Taxes (25%) Net income $ b. OCF c. Depreciation tax shield 643,700 384,300 136,500 b. What is the OCF? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g. 32. c. What is the depreciation tax shield? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g. 32.
Required information [The following information applies to the questions displayed below.] Laker Company reported the following January purchases and sales data for its only product. Date Activities Units Acquired at Cost Units sold at Retail 140 units @ $6.00 = $ 840 Jan. 1 Beginning inventory Jan. 10 Sales 100 units @ $ 15 Jan. 20 Purchase 60 units @ $5.00 = Jan. 25 Sales 80 units @ $15 Jan. 30 Purchase 180 units @ $4.50 = 380 units Totals Sales Cost of goods sold Gross profit The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 200 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory. Expenses Income before taxes Income tax expense Net income Required: 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,250 and that the applicable income tax rate is 40%. (Round your…
The Street Division of Labrosse Logistics just started operations. It purchased depreciable assets costing $37.7 million and having a four-year expected life, after which the assets can be salvaged for $7.54 million. In addition, the division has $37.7 million in assets that are not depreciable. After four years, the division will have $37.7 million available from these nondepreciable assets. This means that the division has invested $75.4 million in assets with a salvage value of $45.24 million. Annual operating cash flows are $13.7 million. In computing ROI, this division uses end-of-year asset values in the denominator. Depreciation is computed on a straight-line basis, recognizing the salvage values noted. Ignore taxes. In computing ROI, this division uses end-of-year asset values. Assume that all cash flows increase 10 percent at the end of each year. This has the following effect on the assets' replacement cost and annual cash flows: End of Year 1 234 Replacement Cost $75,400,000…
Please help me
Fill in the missing numbers for the following income statement. (Input all amounts as positive values. Do not round intermediate calculations.) Sales $ 678,900 Costs 433,800 Depreciation 106,400 EBIT $ Taxes (30%) Net income $ Calculate the OCF. OCF $ What is the depreciation tax shield? Depreciation tax shield $

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