Genera Accounting Question Solve please Question:ofA company has sales of $21,420,000, anet operating income of $1,799,280 andaverage operating assets$5,100,000. The chief financialofficer of the company believes thatthere would be a $6.0 million increasein sales, requiring a $1,755,000increase in average operating assets,with a resulting $997,560 increase innet operating income. What would bethe company's ROI in this scenario?

Step 1: Introduction to ratio analysisRatio analysis is a method used to analyze financial…

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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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Edmonds Industries is forecasting the following income statement: Sales Operating costs excluding depreciation & amortization EBITDA Depreciation and amortization EBIT Interest $6,000,000 3,300,000 $2,700,000 300,000 $2,400,000 480,000 EBT $1,920,000 Taxes (25%) 480,000 $1,440,000 Net Income The CEO would like to see higher sales and a forecasted net income of $2,720,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 6%. The tax rate, which is 25%, will remain the same. (Note that while the tax rate remains constant, the taxes paid will change.) What level of sales would generate $2,720,000 in net income? Round your answer to the nearest dollar, if necessary. $
Edmonds Industries is forecasting the following income statement: Sales Operating costs excluding depreciation & amortization EBITDA $12,000,000 6,600,000 $5,400,000 1,680,000 EBIT $3,720,000 Interest 1,200,000. EBT $2,520,000 Taxes (25%) 630,000 Net income $1,890,000 The CEO would like to see higher sales and a forecasted net income of $2,550,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 15%. The tax rate, which is 25%, will remain the same. (Note that while the tax rate remains constant, the taxes paid will change.) What level of sales would generate $2,550,000 in net income? Round your answer to the nearest dollar, if necessary. Depreciation and amortization
INCOME STATEMENT XYZ Industries is forecasting the following income statement: Sales P8,000,000 Operating costs excl. depr. & amort. 4,400,000 EBITDA 3,600,000 Depreciation & amortization 800,000 EBIT 2,800,000 Interest 600,000 EBT 2,200,000 Taxes (40%) 880,000 Net income 1,320,000 The CEO would like to see higher sales and a forecasted net income of 2,500,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 10%. The tax rate, which is 40%, will remain the same. What level of sales would generate 2,500,000 in net income? *
INCOME STATEMENT Hermann Industries is forecasting the following income statement:Sales $8,000,000Operating costs excluding depr. & amort. 4,400,000EBITDA $3,600,000Depreciation & amortization 800,000EBIT $2,800,000Interest 600,000EBT $2,200,000Taxes (40%) 880,000Net income $1,320,000The CEO would like to see higher sales and a forecasted net income of $2,500,000. Assumethat operating costs (excluding depreciation and amortization) are 55% of sales and thatdepreciation and amortization and interest expenses will increase by 10%. The tax rate, whichis 40%, will remain the same. What level of sales would generate $2,500,000 in net income?
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Edmonds Industries is forecasting the following income statement: Sales Operating costs excluding depreciation & amortization EBITDA Depreciation and amortization $10,000,000 5,500,000 $4,500,000 1,400,000 EBIT $3,100,000 Interest 600,000 EBT $2,500,000 Taxes (25%) 625,000 $1,875,000 Net income. The CEO would like to see higher sales and a forecasted net income of $2,660,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 12%. The tax rate, which is 25%, will remain the same. (Note that while the tax- rate remains constant, the taxes paid will change.) What level of sales would generate $2,660,000 in net income? Round your answer to the nearest dollar, if necessary. Grade it Now Save & Continue
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Use this information for Mason Corporation to answer the question that follow. Mason Corporation had $1,030,000 in invested assets, sales of $1,275,000, income from operations amounting to $227,000, and a desired minimum return of 12%. Round the percentage to one decimal place. The profit margin for Mason Corporation is Oa. 22.0% Оb. 17.8% Oc. 12.0% Od. 80.8%
Edmonds Industries is forecasting the following income statement: Sales $11,000,000 Operating costs excluding depreciation & amortization 6,050,000 EBITDA $4,950,000 Depreciation and amortization 660,000 EBIT $4,290,000 Interest 660,000 EBT $3,630,000 Taxes (40%) 1,452,000 Net income $2,178,000 The CEO would like to see higher sales and a forecasted net income of $3,312,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 8%. The tax rate, which is 40%, will remain the same. (Note that while the tax rate remains constant, the taxes paid will change.) What level of sales would generate $3,312,000 in net income? (If necessary, round your answer to the nearest dollar at the end of the calculations.) The income statement is a company's financial statement that shows the firm's operating revenue and cost. It is used to present the operating…
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