Pine hill Technologies plans to expand its operations. Assets required for expansion will cost $890,000. It is estimated that pine hill will generate $2,120,000 in annual sales with a 5.5% profit margin. What would be the net income and return on assets for the year?

Pine hill Technologies plans to expand its operations. Assets required for expansion will cost $890,000. It is estimated that pine hill will generate $2,120,000 in annual sales with a 5.5% profit margin. What would be the net income and return on assets for the year?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 5PB: Mason, Inc., is considering the purchase of a patent that has a cost of $85000 and an estimated...

See similar textbooks

Related questions

Q: Accoun ting question

A: Given Information:Current Ratio = 2.8(Current Ratio = Current Assets ÷ Current Liabilities)Acid-Test…

Q: I am looking for the most effective method for solving this financial accounting problem.

A: Finding the Actual Return on Plan Assets for 2023The formula for Actual Return on Plan Assets…

Q: Kindly help me with this General accounting questions not use chart gpt please fast given solution

A: Step 1: Definition of Degree of Operating Leverage (DOL)The Degree of Operating Leverage (DOL)…

Q: A town council is considering converting an abandoned mall into a community arts center. They…

A: Step 1: Understanding the Benefit-Cost Ratio (BCR) The Benefit-Cost Ratio (BCR) is a key metric used…

Q: Hi expert please help me this question

A: Step 1: Definition of Gross Margin PercentageThe Gross Margin Percentage (also called Gross Profit…

Q: explain.The Expenses, Profit & Loss of an organisation are recorded in which account? Current…

A: The correct answer is Nominal Account.Explanation:In accounting, Nominal Accounts are used to record…

Q: What is the predetermined overhead rate

A: To determine the predetermined overhead rate per unit, use the following formula:Overhead Rate per…

Q: Please solve this questions Accounting

A: Step 1: Definition of Debt-Equity RatioThe Debt-Equity Ratio is a financial metric used to assess a…

Q: Need

A: Approach to solving the question: Detailed explanation: To determine the number of units that must…

Q: On January 1, 2018, Accounts Receivable was $25,000. Sales on account for 2018 totaled $180,000. The…

A: Step 1: Definition of Cash Collected from CustomersCash collected from customers refers to the…

Q: Dion Traders has a selling price of $75, variable costs of $60, and fixed costs are $90,000. How…

A: To find the break-even point, we'll use the formula: Break-Even Point = Fixed Costs / Contribution…

Q: I need help finding the accurate solution to this general accounting problem with valid methods.

A: Step 1: Definition of Long-Term Debt to Total Assets RatioThe long-term debt to total assets ratio…

Q: If you unhelpful my answer then I will unhelpful byour answer. Also you know unhelpful will remove…

A: To determine the manufacturing overhead rate for the year, we use the predetermined overhead rate…

Q: Can you please solve this question

A: Step 1: Definition of Perpetual Inventory SystemThe perpetual inventory system continuously tracks…

Q: Help

A: Step 1: Determine the cost of the equipmentThe equipment was purchased for $840,000.Step 2: Subtract…

Q: Can you demonstrate the accurate method for solving this financial accounting question?

A: Step 1: Define Degree of Operating Leverage (DOL):The degree of operating leverage (DOL) measures…

Q: A firm has net working capital of $720, net fixed assets of $2,980, and sales of $7,800. How many…

A: Explanation of Net Working Capital:Net working capital is the difference between a company's current…

Q: General accounting question

A: Step 1: Compute the Total Par Value of Common StockEach of the 500,000 shares has a par value of…

Q: What is the company's debt to equity ratio? Accounting

A: Step 1: Definition of Debt-to-Equity RatioThe debt-to-equity ratio is a financial leverage ratio…

Q: What is the 2009 cash flow to creditors?

A: To calculate the cash flow to creditors (CFC), we use the formula:Cash Flow to Creditors = Interest…

Q: Financial accounting

A: Step 1: Definition of Gross Margin RatioThe Gross Margin Ratio is a key financial metric that…

Q: Step by step answer

A: Concept of Budgeted Sales VolumeBudgeted sales volume refers to the number of units a company…

Q: Can you explain the steps for solving this Financial accounting question accurately?

A: Step 1: Define Operating IncomeOperating Income is the profit earned from a company's core business…

Q: What was the average collection period?

A: To determine the average collection period, we use the formula:Average Collection Period = 360 /…

Q: Account Question answer wanted.

A: Step 1: Definition of Degree of Operating Leverage (DOL)The degree of operating leverage (DOL)…

Q: Please show me the correct approach to solving this financial accounting question with proper…

A: Concept of Contribution Margin:The contribution margin represents the portion of sales revenue that…

Q: Can you help me solve this Financial accounting problem using the correct accounting process?

A: Step 1: Define Margin (Profit Margin)Concept of Margin: Margin (also called Profit Margin) is a…

Q: Provide a clear explanation for solving this financial accounting question.

A: Step 1: Definition of Dividend Payout RatioThe dividend payout ratio is the proportion of net income…

Q: What amount of support centre department costs will be allocated

A: To determine the amount of Support Center Department costs allocated to Department Books using the…

Q: Calculate gelexy corp estimated free cash flow?

A: Free Cash Flow (FCF) is a key financial metric used to determine how much cash a company generates…

Q: Variable lease payments based on an index are? A. Included using initial index B. Excluded from…

A: Explanation of Variable Lease Payments:Variable lease payments are lease payments that change over…

Q: Not use ai solution please and accounting question

A: Step 1: Definition of Gross Profit and Operating IncomeGross Profit is the difference between net…

Q: Provide best solution

A: Step 1: Definition of Gross MarginGross Margin is the difference between net sales and cost of goods…

Q: Financial accounting

A: Step 1: Definition of After-Tax Cost of DebtThe after-tax cost of debt refers to the effective…

Q: General accounting question

A: Definition of Earnings Per Share (EPS):Earnings per share (EPS) is a financial metric that indicates…

Q: I need the correct answer to this financial accounting problem using the standard accounting…

A: Step 1: Definition of Net IncomeNet Income is the amount of profit a company has left after all…

Q: Provide best Answer

A: By precisely estimating the profit per test and incorporating the original investment cost for the…

Q: The main Purpose of Financial Accounting is? To Provide financial information to shareholders To…

A: The main purpose of financial accounting is:"To provide financial information to…

Q: Solve this Financial Accounting Problem

A: To calculate the interest revenue for the quarter ending March 31, use the simple interest…

Q: Solve with explanation and accounting question

A: To determine the prepaid insurance balance at the end of the third year, follow these steps:Find the…

Q: Please provide the solution to this financial accounting question using proper accounting…

A: Step 1: Definition of Lower-of-Cost-or-Market Rule (LCM)The Lower-of-Cost-or-Market Rule (LCM) is a…

Q: Please correct solution by best expert..

A: To calculate the gross profit, we subtract the Cost of Goods Sold (COGS) from the Sales Revenue. In…

Q: On January 1, 2024, Sunfish Co. issued a $22 million, 8%, 6-year convertible bond with annual coupon…

A: 1. Journal Entry for Issuance of Convertible Bonds (January 1, 2024)Sunfish Co. issued the $22…

Q: I am looking for a reliable way to solve this financial accounting problem using accurate…

A: To determine the cash paid for rent during 2020, we use the following formula:Cash Paid for Rent =…

Q: Financial Accounting

A: Step 1: Define Gross Profit Margin Gross profit margin is a financial metric that shows the…

Q: Variable costs are per unit and total fixed costs amount

A: Step 1: Definition of Contribution MarginContribution Margin represents the portion of sales revenue…

Q: I need help with this financial accounting question using the proper accounting approach.

A: The gross margin ratio is calculated using the formula:Gross Margin Ratio = (Gross Profit / Net…

Q: Please give me true answer this financial accounting question

A: To find the market price per share of Greenfield Technologies' stock, we use the Market/Book Ratio…

Q: What is the gain or loss on disposal ??

A: Step 1: Definition of Gain or Loss on DisposalThe gain or loss on disposal of an asset is the…

Q: I am trying to find the accurate solution to this financial accounting problem with appropriate…

A: Step 1: Define Operating Cash Flow Operating Cash Flow (OCF) represents the cash generated by a…

Question

100%

Can you demonstrate the accurate steps for solving this financial accounting problem with valid procedures?

Pine hill Technologies plans to expand its operations. Assets
required for expansion will cost $890,000. It is estimated that
pine hill will generate $2,120,000 in annual sales with a 5.5%
profit margin.
What would be the net income and return on assets for the year?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Falkland, Inc., is considering the purchase of a patent that has a cost of $50,000 and an estimated revenue producing life of 4 years. Falkland has a cost of capital of 8%. The patent is expected to generate the following amounts of annual income and cash flows: A. What is the NPV of the investment? B. What happens if the required rate of return increases?
Towson Industries is considering an investment of $256,950 that is expected to generate returns of $90,000 per year for each of the next four years. What Is the Investments internal rate of return?
Your company is planning to purchase a new log splitter for is lawn and garden business. The new splitter has an initial investment of $180,000. It is expected to generate $25,000 of annual cash flows, provide incremental cash revenues of $150,000, and incur incremental cash expenses of $100,000 annually. What is the payback period and accounting rate of return (ARR)?
Caduceus Company is considering the purchase of a new piece of factory equipment that will cost $565,000 and will generate $135,000 per year for 5 years. Calculate the IRR for this piece of equipment. For further instructions on internal rate of return In Excel, see Appendix C.
Accounting
Give me this question answer
Need help
General Accounting
Cullumber Corp. management is expecting a project to generate after-tax income of $76,300 in each of the next three years. The average book value of the project’s equipment over that period will be $194,140. If the firm’s investment decision on any project is based on an ARR of 37.5 percent. What is the project's accounting rate of return? - Accounting rate of return is ?
Finnegan Company plans to invest in a new operating plant that is expected to cost $762,500. The projected incremental income from the investment is as follows: Net Income Year After Tax $51,000 $66,000 $71,000 $76,000 $61,000 $41,000 1 4 6. The unadjusted rate of return on the initial investment would be approximately:
Hernandez Corporation expects to have the following data during the coming year. What is Hernandez's expected ROE? (Show your work) Assets = $200,000 D/A = 65% EBIT = $25,000 Interest rate = 8% Tax rate = 40%
Bennett Company has a potential new project that is expected to generate annual revenues of $256,700, with variable costs of $141,600, and fixed costs of $59,500. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $21,500. The annual depreciation is $24,000 and the tax rate is 21 percent. What is the annual operating cash flow?