Last year, Dolphin Inc. had sales of $5,000,000, total variable costs of $2,000,000, and total fixed costs of $1,000,000. In addition, they paid $300,000 in interest to bondholders. Dolphin has a 30% marginal tax rate. If Dolphin's sales increase 10%, what should be the increase in earnings per share?
Q: Sam Enterprises has a return on equity of 14.8%. The debt-equity ratio is 52%, and the capital…
A: To find the profit margin, we will use the DuPont Identity, which expresses Return on Equity (ROE)…
Q: Need help with this general accounting question
A: Step 1: Definition of Degree of Operating Leverage (DOL)The Degree of Operating Leverage (DOL)…
Q: Hello tutor please help me
A: Step 1: Definition of Net IncomeNet income is the most important indicator of a business's…
Q: Compute total manufacturing costs? Please given answer
A: Step 1: Define Costs of a FirmThe overall costs of a firm can be broadly categorized into…
Q: During the year
A: Step 1: Salary Expenses can be calculated by adding Salaries paid and Ending Salaries payable and…
Q: Accurate answer
A: Explanation of Net Operating Income: Net operating income represents the profit generated from a…
Q: answer
A: The question requires the determination of the cash conversion cycle. The cash conversion cycle…
Q: Provide correct answer general Accounting question
A: Step 1: Define Types of Stock PriceStock price can be of two types: the fair price or the…
Q: Accounting sum 6 pts
A: Concept of Fixed CostsFixed costs are expenses that remain constant regardless of the level of…
Q: Kitty Manufacturing has the following data: Beginning Finished Goods Inventory = $10,200 Raw…
A: Explanation of Cost of Goods Sold (COGS):Cost of Goods Sold (COGS) represents the direct costs…
Q: Financial Accounting Question
A: Step 1: Definition of Absorption vs. Variable Costing Impact on Pre-Tax IncomeUnder absorption…
Q: What is its standard manufacturing overhead rate per unit? Give me solution
A: Step 1: Definition of Standard Manufacturing Overhead RateThe standard manufacturing overhead rate…
Q: Sierra Adventures has a net income of $3 million this year. The book value of Sierra Adventures'…
A: Step 1: Identify the formula for Internal Growth Rate (IGR)Step 2: Calculate the Retention RatioStep…
Q: Don't Use AI
A: Concept of Selling PriceThe selling price is the amount at which a product is sold to a customer. It…
Q: Average costing system?
A: Step 1: Definition of Process Costing and Weighted Average MethodThe process costing system is used…
Q: None
A: Step 1: Definition of Pension ExpensePension expense is the cost recognized by an employer for…
Q: What is the firm's ROA
A: To calculate the Return on Assets (ROA), we use the formula:ROA=Net Income/Total AssetsGiven…
Q: expert of general account
A: Step 1: Property, Plant, and Equipment Property, Plant, and Equipment - long-term assets that are…
Q: Financial Accounting Question please answer
A: Step 1: Analysis of information givenThe fact that the machine was purchased 5 years ago does not…
Q: What is the variable cost per unit processed?
A: Explanation of Variable Cost: Variable cost is a business expense that changes in proportion to the…
Q: What is the level of its accounts receivable for this financial accounting question?
A: Step 1: Define Accounts Receivable Using Days Sales Outstanding (DSO)Days Sales Outstanding (DSO)…
Q: Solaris Enterprises' break-even point in sales is $1,050,000, and its variable expenses are 72% of…
A: Step 1: Calculation of contribution margin ratioSales is the sum of variable expenses and…
Q: What is the best estimated of the total monthly fixed manufacturing cost ?
A: Step 1: Definition of Fixed Manufacturing Cost Using the High-Low MethodThe high-low method is used…
Q: Step by step answer
A: the ending total asset balance is $1,100,000.Explanation of Net Sales: Net sales represents the…
Q: Answer this Accounting problem
A: Concept of Variable CostingVariable costing is a cost accounting method that includes only variable…
Q: Please give the answer general accounting
A: Step 1. Required A: Initial entry Debit Cash to increase its balance by $60,000Credit Notes payable…
Q: Answer
A: Step 1: Definition of Work-In-Process InventoryWork-in-process inventory refers to partially…
Q: Please provide solution this financial accounting question
A: Step 1: Define Gain or Loss on Asset SaleWhen a company sells a fixed asset, it records a gain if…
Q: Correct Answer
A: Concept of Total AssetsTotal Assets represent everything a company owns that has economic value and…
Q: Financial Accounting
A: Step 1: Definition of Corporation's Tax Basis in Property (Section 351)Under Section 351 of the…
Q: Ans please ABC ?
A: Step 1: Define Contribution Margin AnalysisIn the context of accounting, the contribution margin…
Q: Give me Answer
A: Standard Cost per Pound=5.80 Standard Material per Unit=2.35 pounds which means 1 unit requires 2.35…
Q: General accounting question please give me solution
A: Step 1: Definition of LiabilitiesLiabilities represent the financial obligations of a company,…
Q: General accounting
A: Here's how to calculate your total return and after-tax return:1. Total ReturnCalculate the total…
Q: abc general accounting
A: Step 1: Definition of Net IncomeNet income is the profit earned by a business after subtracting all…
Q: Hi expert please help me
A: Step 1: Definition of Product cost in accounting:As per the accounting terms of GAAP and IFRS, the…
Q: If the beginning inventory is $75,000, the cost of goods purchased is $420,000, and the ending…
A: Explanation of Beginning Inventory: Beginning inventory represents the total value of goods that a…
Q: General accounting
A: Step 1: Definition of Gross Profit and Gross Profit RatioGross Profit is the difference between net…
Q: Pinakin Inc. has sales of $680,000 and costs of $305,000. Interest expense is $25,000 and…
A: Step 1: Calculation of Earnings before taxEarnings before tax = Sales - Costs - Interest expense -…
Q: What is the Economic order Quantity of this financial accounting question?
A: Understanding EOQThe EOQ formula helps businesses determine the optimal order size to minimize total…
Q: What is the predetermined overhead allocation rate?
A: Explanation of Predetermined Overhead Allocation Rate:The predetermined overhead allocation rate is…
Q: What does the selling price per unit need to be? General accounting question
A: Step 1: Definition of Contribution MarginContribution Margin is the amount remaining from sales…
Q: Please given answer
A: The question requires the determination of the return on common stockholder's equity. The Return on…
Q: III. For each transaction, indicate whether the assets (A), liabilities (L) or owner's equity (OE),…
A: III TransactionA (Assets)L (Liabilities)OE (Owner's Equity)DrCr1Collected an account…
Q: I want the correct answer with accounting
A: Step 1: Introduction to CVP AnalysisCVP analysis, or cost-volume-profit analysis, is a management…
Q: Assume the cost of capital is 13 percent
A: 1. Calculate the total return:Total return = Cash inflow - Initial investmentTotal return = $660,000…
Q: Financial accounting question
A: Step 1: Define Accounting EquationThe Accounting Equation states that a company's total assets are…
Q: Provide correct answer general accounting
A: Step 1:FIFO:-Fifo is the method of valuation of inventory in which inventory purchased first will be…
Q: general accounting is
A: Firm's Cash Conversion CycleFirm′s Cash Conversion Cycle=DIO+DSO−DPOCalculation of Days Inventory…
Q: choose best answer me
A: Step 1: Definition of DepreciationDepreciation is the allocation of the cost of a fixed asset over…
None
Step by step
Solved in 2 steps
- Last year, Cayman Corporation had sales of $6,834,793, total variable costs of $2,832,135, and total fixed costs of $1,547,197. In addition, they paid $480,000 in interest to bondholders. Cayman has a 21% marginal tax rate. If Cayman's sales increase 7%, what should be the increase in earnings per share?Last year, Cayman Corporation had sales of $6 million, total variable costs of $2 million, and total fixed costs of $1 million. In addition, they paid $480,000 in interest to bondholders. Cayman has a 21% marginal tax rate. If Cayman's sales increase 6%, what should be the increase in operating income?Last year, Cayman Corporation had sales of $6,608,800, total variable costs of $2,695,237, and total fixed costs of $1,517,037. In addition, they paid $480,000 in interest to bondholders. Cayman has a 21% marginal tax rate. If Cayman's sales increase 10%, what should be the increase in earnings per share? SET YOUR CALCULATOR TO 4 DECIMAL PLACES. ROUND TO 2 DECIMAL PLACES AT THE END. DO NOT ENTER THE % SIGN. FOR EXAMPLE, IF YOUR ANSWER IS 9.4567, ENTER IT AS 9.46.
- Last year, Cayman Corporation had sales of $6,766,704, total variable costs of $2,557,445, and total fixed costs of $1,589,315. In addition, they paid $480,000 in interest to bondholders. Cayman has a 21% marginal tax rate. If Cayman's sales increase 5%, what should be the increase in earnings per share? SET YOUR CALCULATOR TO 4 DECIMAL PLACES. ROUND TO 2 DECIMAL PLACES AT THE END. DO NOT ENTER THE % SIGN. FOR EXAMPLE, IF YOUR ANSWER IS 9.4567, ENTER IT AS 9.46. 2. Kiwi Airlines has fixed operating costs of $3 million, and its variable costs amount to 22 percent of sales revenue. The firm has $2 million in bonds outstanding with a coupon interest rate of 8 percent . Revenues for the firm are $10 million and the firm is in the 21 percent corporate income tax bracket . What is the firm's degree of operating leverage ? SET YOUR CALCULATOR TO 4 DECIMAL PLACES . ROUND TO 2 DECIMAL PLACES AT THE END. FOR EXAMPLE , IF YOUR ANSWER IS 9.4567 ENTER IT AS 9.46 . Please help me with them before…Last year, Cayman Corporation had sales of $26 million, total variable costs of $15 million, and total fixed costs of $5,000,000. In addition, they paid $4 million in interest to bondholders. Cayman has a marginal tax rate of 21 percent. If Cayman's sales increase by 15%, what should be the increase in operating income?Pfizer currently has a Net Profit Margin of 5%, its corporate tax rate is 21% and its annual interest payments are $20 million. How much do Pfizer’s sales need to be to produce a times interest earned (TIE) of 8.0?
- An all -equity firm reports a net profit margin of 12% on sales of $6 million. If the tax rate is 35%, what is the pretax profit?Last year the Rondoelea Products Company had $142 million in annual sales and a net profit margin of 10.4 percent. In addition, Rondoelea's average tax rate was 30 percent. If Rondoelea had $37 million of debt outstanding with an average interest rate of 9.3 percent, what is the firm's times interest earned ratio?What are its after tax earnings? Accounting
- Suppose you are estimating the WACC for Columbus Inc. It has the following data from its balance sheet: total debt = $200 million; total equity=$120 million. It has 20 million shares outstanding, and its stock is trading at $32 per share. Your analysis shows that the company's current borrowing rate is 7%, and that the cost of equity is 13%. If the company marginal tax rate is 30%, what is its WACC?A firm has a profit margin of 15% on sales of $20,000,000. If the firm has debt of $7,500,000, total assets of $22,500.00, and a after-tax interest cost on total debt of 5%, what is the firm's ROA?Last year, Cayman Corporation had sales of $7 million, total variable costs of $2 million, and total fixed costs of $1 million. In addition, they paid $480,000 in interest to bondholders. Cayman has a 21% marginal tax rate. If Cayman's sales increase 6%, what should be the increase in operating income? SET YOUR CALCULATOR TO 4 DECIMAL PLACES. ROUND TO 2 DECIMAL PLACES AT THE END. DO NOT ENTER THE % SIGN. FOR EXAMPLE, IF YOUR ANSWER IS 9.4567, ENTER IT AS 9.46. 420,000