Sales for last year Lastyear, Hever Inc. had sales of $500,000, based ona unit selling price of $250. The variable cost per unitwas $175, and fixed costs were $75,000. Themaximum sales within Hever Inc.'s relevant rangeare 2,500 units. Hever Inc. is considering a proposalto spend an additional $33,750 on billboardadvertising during the current year in an attempt toincrease sales and utilize unused capacity.Construct a cost-volume-profit chart indicating thebreak-even sales for last year.Break-even sales (dollars):Break-even sales (units):

Explanation of Cost-Volume-Profit (CVP) Analysis:Cost-Volume-Profit (CVP) analysis is a financial…

Answered: Last year, Hever Inc. had sales of…

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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Selected comparative financial statements of Haroun Company follow. HAROUN COMPANY Comparative Income Statements For Years Ended December 31, 2021-2015 ($ thousands) Sales 2021 Cost of goods sold $ 1,769 1,271 2020 $ 1,549 2019 2018 2017 2016 2015 $ 1,410 $ 1,292 $ 1,206 $ 1,121 $ 919 1,034 889 778 723 676 539 Gross profit 498 515 521 514 483 445 380 Operating expenses Net income 377 295 271 200 173 171 142 $ 121 $ 220 $ 250 $ 314 $ 310 $ 274 $ 238 HAROUN COMPANY Comparative Year-End Balance Sheets December 31, 2021-2015 ($ thousands) Assets Cash Accounts receivable, net Merchandise inventory Other current assets Long-term investments Plant assets, net Total assets Liabilities and Equity 2021 2020 2019 2018 2017 2016 2015 $ 108 773 $ 142 812 $ 148 735 2,797 2,036 1,779 $ 151 564 1,499 $ 157 496 $ 155 $ 160 470 332 1,346 1,144 829 72 65 40 71 60 61 32 e B 220 220 220 220 3,422 3,409 2,982 1,683 $ 7,172 $ 6,464 $ 5,684 $ 4,188 $ 4,019 1,740 1,546 $ 3,596 $ 2,900 1,327 Current liabilities…
C
Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity Joel de Paris, Incorporated Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 121,000 207,000 $4,416,000 3,665,280 750,720 328,000 $ 422,720 Beginning Balance $ 136,000 339,000 568,000 857,000 395,000 251,000 $ 2,546,000 Ending Balance $ 131,000 479,000 488,000 842,000 435,000 253,000 $ 2,628,000 $ 349,000 $ 374,000 983,000 1,189,000 983,000 1,296,000 $ 2,546,000 $ 2,628,000 The company paid dividends of $315,720 last year. The “Investment in Buisson, S.A.," on the balance sheet represents an investment in the stock of another company. The…
Calculate LTM (last twelve months) 9/30/2012 sales given the information below Sales data in millions YTD 9/30/2012 sales YTD 9/30/2011 sales YTD 9/30/2010 sales 2011 sales 2010 sales $1,900.7 $2,000.5 $2,100.0 Ⓒ$2,400.0 $1,600.0 1,450.0 1,375.0 2,250.0 2,000.0
! Required information Use the following information for the Quick Studies below. (Algo) ($ thousands) Net sales Current Year $ 803,470 394,775 Prior Year $ 455,095 135,878 Cost of goods sold QS 17-7 (Algo) Trend percents LO P1 Determine the Prior Year and Current Year trend percents for net sales using the Prior Year as the base year. (Enter the answers in thousands of dollars.) Current Year: Prior Year: Numerator: Trend Percent for Net Sales: 1 1 1 1 Denominator: = = = Trend Percent 0 % 0 %
A retailer ordered merchandise totaling $128,115.23 with terms 3.5%/10 net 40. What is the effective rate of return? Assume there are 365 days in a year.
Common-size and trend percents for Roxi Company's sales, cost of goods sold, and expenses follow. Sales Cost of goods sold Operating expenses Common-Size Percents Current Year 100.0% 63.3 14.4 Change in Net Net Income Income 1 Year Ago 100.0% 61.1 13.9 2 Years Ago 100.0% 58.0 14.2 Trend Percents 1 Year Ago Current Year 105.0% 114.6 106.6 Complete this question by entering your answers in the tabs below. 103.8% 109.3 101.6 Determine the net income for the following years. Did the net income increase, decrease, or remain unchanged in this three-year period? 2 Years Ago 100.0% 100.0 100.0 Did the net income increase, decrease, or remain unchanged in this three-year period? Did the net income increase, decrease, or remain unchanged in this three-year period?
Use the following selected information from Corolla to determine the Year 1 and Year 2 trend percentages for net sales using Year 1 as the base. Year 2 Year 1 Net sales $ 277,700 $ 231,700 Cost of goods sold 151,600 129,890 Operating expenses 54,940 52,940 Net earnings 28,320 20,120 Multiple Choice 116.7% for Year 2 and 100.0% for Year 1. 54.6% for Year 2 and 56.1% for Year 1. 36.2% for Year 2 and 40.8% for Year 1. 65.6% for Year 2 and 64.6% for Year 1. 119.9% for Year 2 and 100.0% for Year 1.
PROBLEM 11-17 Return on Investment (ROI) and Residual Income LO11-1, LO11-2 Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Ending Balance Balance Assets Cash $ 140,000 $ 120,000 Accounts receivable 450,000 530,000 Inventory 320,000 380,000 Plant and equipment, net 680,000 620,000 Investment in Buisson, S.A. 280,000 170,000 250,000 Land (undeveloped) 180,000 Total assets $2,020,000 $2,100,000 Liabilities and Stockholders' Equity Accounts payable. $ 360,000 $ 310,000 Long-term debt Stockholders' equity 1,500,000 1,500,000 160,000 290,000 Total liabilities and stockholders' equity $2,020,000 $2,100,000 Joel de Paris, Inc. Income Statement Sales $4,050,000 Operating expenses Net operating income 3,645,000 405,000 Interest and taxes: Interest expense $150,000 Таx expense 110,000 260,000 Net income $ 145,000 The company paid dividends of $15,000 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an…
Which year performered best ?
Common-size and trend percents for Roxi Company's sales, cost of goods sold, and expenses follow. Common-Size Percents Trend Percents Current 2 Years Year 1 Year Ago Sales 100.0% 100.0% Ago 100.0% Current Year 103.7% 2 Years 1 Year Ago Ago 102.5% 100.0% Cost of goods sold 63.3 61.1 56.7 115.8 110.5 100.0 Operating expenses 14.2 13.7 14.0 105.2 100.3 100.0 Determine the net income for the following years. Did the net income increase, decrease, or remain unchanged in this three-year period? Complete this question by entering your answers in the tabs below. Change in Net Income Net Income Determine the net income for the following years. Assuming sales were $100,000 2 yrs ago, what is net income in each year? Note: Enter all amounts as positive values. Sales Cost of Goods Sold Operating Expenses Net Income Current Year 1 Year Ago 2 Years Ago $ 100,000 56,700 14,000 $ 29,300 < Change in Net Income Nachicome D

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