In Millions of USD except Per Share12 Months EndingRevenuePassengerOtherFreightRevenue Growth %OtherPassengerFreightFY 201412/31/201418 605,017 658,0772,0175,0-5,205,606,70FY 201512/31/201519 820,018 299,01 170,0179,0FY 201612/31/201620 425,018 594,01 660,0171,0FY 201712/31/201721 146,019 763,01 210,0173,0FY 201812/31/201821 965,020 455,01 335,0175,0 You work a junior analyst in the investment bank. Your first project is to build a model for the company above.Your senior manager asked you to prepare a segment analysis. She made a following comment: "The industryhad some fluctuations prior to 2016, but based on the industry report the growth is coming back. We shouldexpect the same growth rate for the passenger segment as in the last year. Freight growth most likely will bethe average of the last two years. "Other" segment is not clear, we probably should keep the same per cent ofthe total as in the last 5 years.1) Prepare a table showing relative weights of each segment of revenue over the five year period2) Calculate growth rates for each segment over the periods presented3) Make a forecast for the Segments and Total Revenue for 2019

In a financial modeling exercise, we have to find the pat trends and make forecast for the next…

In Millions of USD except Per Share 12 Months Ending Revenue Passenger Other Freight Revenue Growth % Other Passenger Freight FY 2014 12/31/2014 18 605,0 17 658,0 772,0 175,0 -5,20 5,60 6,70 FY 2015 12/31/2015 19 820,0 18 299,0 1 170,0 179,0 FY 2016 12/31/2016 20 425,0 18 594,0 1 660,0 171,0 FY 2017 12/31/2017 21 146,0 19 763,0 1 210,0 173,0 FY 2018 12/31/2018 21 965,0 20 455,0 1 335,0 175,0

In Millions of USD except Per Share 12 Months Ending Revenue Passenger Other Freight Revenue Growth % Other Passenger Freight FY 2014 12/31/2014 18 605,0 17 658,0 772,0 175,0 -5,20 5,60 6,70 FY 2015 12/31/2015 19 820,0 18 299,0 1 170,0 179,0 FY 2016 12/31/2016 20 425,0 18 594,0 1 660,0 171,0 FY 2017 12/31/2017 21 146,0 19 763,0 1 210,0 173,0 FY 2018 12/31/2018 21 965,0 20 455,0 1 335,0 175,0

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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1 Saved Help Coolbrook Company has the following information available for the past year: River Division Stream Division $1,815,000 1,298,000 $517,000 Sales revenue $1,210,000 883,000 $ 327,000 $1,180,000 Cost of goods sold and operating expenses Net operating income Average invested assets $1,510,000 The company's hurdle rate is 6.76 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. 2. Recalculate ROI and residual income for the division for each independent situation that follows: a. Operating income increases by 9 percent. b. Operating income decreases by 11 percent. c. The company invests $253,000 in each division, an amount that generates $101,000 additional income per division. d. Coolbrook changes its hurdle rate to 4.76 percent. Complete this auestion hy entering v ur answers in the tabs below. %24
7:33 Manero Company included the following information in its annual report: Sales Cost of goods sold Operating expenses Operating income Multiple Choice 20X3 $178,400 115,000 50,000 13,400 O In comparison to year 20X2 the increase in operating income of 20X3 was primarily caused by (ignore taxes): the effect of margin growth. 20X2 $162,500 102,500 50,000 10,000 the effect of sales growth. 20X1 $155,500 100,000 45,000 10,500 the answer cannot be derived from the information provided. the effect of cost of goods sold growth.
Mark up cost structure example with example of Margin cost structure Sales 125% Sales 100%CoS (100%) CoS (75%)Gross Profit 25%. Gross Profit 25% The draft accounts of Astel Co. for the year ended 31st Jan 2020 include the following: Revenue $80,000 Gross profit $20,000It was subsequently discovered that revenue had been understated by $10,000 and closing inventory overstated by $5,000. 1. After correction of these errors the gross profit percentage margin will be (to 1 d.p.)?
šales = 100,000 units Cost to place an order = $25 Freight cost = $225 Cost of 1 unit of inventory = $100 Cost of Goods Sold = $10,000,000 Selling price of 1 unit = $200 Storage cost = $33 per year Lead-time is 6 days Average inventory $250,000 Re-stock fee is $45 Cost of capital = 25% Storage space = 5% Insurance = .5% Prime interest rate = 3.6% Taxes = 1.5% %3D Average annual depreciation = 15% Service cost = 2% Risk = 1% Forecast error = 13% 1. List the components of inventory carrying cost and calculate the ICC%.
Use formula as needed. Do not hardcode. 3. Calculate the following for both divisions using appropriate formula: - Variable costs per unit - Contribution margin per unit - Break-even units Use Roundup formula in Excel to round up to full unit. The general roundup formula for break-even will be: =ROUNDUP(Total Fixed costs/Contribution margin per unit,0). - Break-even sales in dollar - Margin of safety in percentage - Operating leverage not income
1. Using the Goal Seek Tool find the Net Income breakeven point for both years changing the units sold while price remains fixed at $25.00 2. Using the Goal Seek Tool find the price each year that creates an income 1200 in 2018 and 2019 holding sales at 3500 units 2018 2019 Total Revenue 61436 63644 Cost of Goods Sold 46077 47733 Gross Profit 15359 15911 General & Admin 12,884 13,411 Depreciation 1250 1,250 Rent 650 650 Operating Expenses 14,784 15,311 EBIT 575 600 Interest Expense 575 600 Earnings Before Taxes 0 0 Income Tax Expense 0 0 Net Income 0 0 Units Sold 2,457 2,546 Price 25.00 25.00 Tax Rate 40.0% 40.0% Cost of Good Sold 75.0% 75.0%
Members of the board of directors of Security One have received the following operating income data for the year ended May 31, 2018: E (Click the icon to view the operating income data.) Members of the board are surprised that the industrial systems product line is not profitable. They commission a study to determine whether the company should drop the line. Company accountants estimate that dropping industrial systems will decrease fixed cost of goods sold by $82,000 and decrease fixed selling and administrative expenses by $10,000. Read the requirements. Requirement 1. Prepare a differential analysis to show whether Security One should drop the industrial systems product line. (Use parentheses or a minus sign to enter decreases to profits.) in operating income Requirements 1. Prepare a differential analysis to show whether Security One should drop the industrial systems product line. 2. Prepare contribution margin income statements to show Security One's total operating income under…
90 Marston Corporation Statement of Income for the Year Ending December 31, 2022 Using Sales Agents Using Own Sales Force $26,000,000 Sales Cost of goods sold Variable Fixed Gross margin Marketing costs Commissions Fixed costs Operating income $11,700,000 2,870,000 4,680,000 3,420,000 $26,000,000 14,570,000 11,430,000 8,100,000 $ 3,330,000 $11,700,000 2,870,000 2,600,000 5,500,000 14,570,000 11,430,000 8,100,000 $ 3,330,000 Marston is considering hiring its own sales staff to replace the network of agents. Marston will pay its salespeople a commission of 10% and incur additional fixed costs of $2,080,000. 4 Required 1. Calculate Marston Corporation's 2022 contribution margin percentage, breakeven revenues, and degree of operating leverage under each of the two scenarios. (You will first have to recast the 2022 statement of income assuming Marston had hired its own sales staff.) 2. Describe the advantages and disadvantages of each type of sales alternative. 3. In 2023, Marston uses its…
Question 5 The following information relates to ABC Ltd for the year ended 31 May 2015: Sales Variable costs Fixed costs REQUIRED: R450 000 (R270 000) (R110 000) Using the information above, determine the percentage (%) fall in sales that would need to occur before ABC Ltd starts incurring a loss. (Round off your answer to two (2) decimal places)
dreams demstime dremstph %24 The co ired rate of is 15%. Requlred Information The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: $ 2,300,000 Sales Variable expenses Contribution margin Fixed expensesi 1,630,000 1,170,000 24 460,000 $ 1,437,500 Net operating income Average operating assets At the beginning of this year, the company has a $287,500 investment opportunity with the following cost and revenue characteristics: $ 460,000 Contribution margin ratio Fixed expenses 50% of sales $ 161,000 The company's minimum required rate of return is 15%. 9. If the company pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year? (Do not round Intermedlate calculations. Round your percentage answer to 1 declmal place (I.e., 0.1234 should be considered as 12.3).)
Income Statement for Bearcat Hathaway, 2022 Sales Less Cost of Goods Sold Gross Profit Less General & Administrative Expenses $10,000,000 $2,470,732 $7,529,268 $1,438,438 $2,656,922 $3,433,908 $924,283 $2,509,625 $527,021 $1,982,604 $312,519 Less Depreciation Earnings Before Interest and Taxes Less Interest Paid Taxable Income (or Earnings Before Taxes) Less Taxes (21% Tax Rate) Net Income Dividends Calculate the operating cash flow. $6,090,830 $1,304,007 $3,433,908 $5,563,809 O $1,982,604
2021 2020 Sales P2,080,000 P2,000,000 Cost of sales 1,755,000 1,500,000 Gross margin 325,000 500,000 Unit selling price decreased 20% at the start of 2019. The change in gross profit due to the decrease in selling price is: P520,000 increase P80,000 increase P520,00 decrease P80,000 decrease P600,000 decrease P600,000 increase

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