Shorter Company had originally expected to earn operating income of $130,000 in the coming year. Shorter's degree of operating leverage is 2.4. Recently, Shorter revised its plans and now expects to increase sales by 20% next year. What is the percent change in operating income expected by Shorter in the coming year?
Q: Solve the problem
A: Compute the number of units completed during the month by using the following formula: Units…
Q: I need answer of this question solution general accounting
A: Explanation: In the given case, we are provided with the data about last year for Rec Room Sports…
Q: ROA
A: Explanation of Net Income:Net income represents the profit a company earns after deducting all…
Q: Account Question
A: Explanation of FIFO (First-In, First-Out):FIFO stands for First-In, First-Out, which is a method of…
Q: Which answer is correct?
A: Explanation of Overhead Costs: Overhead costs are the indirect expenses incurred during the…
Q: How does the concept of objectivity influence the selection and application of accounting methods…
A: Key Definitions:Explanation of Objectivity: Objectivity in accounting refers to the principle that…
Q: RST Company uses a process cost system. The following data pertains to January. Please provide…
A: Step 1: Define Equivalent production unitA manufacturer's activity on output values that are only…
Q: Financial Accounting
A: Step 1: Define Stock IssueCompanies issue stock to finance their operations, and therefore they…
Q: Determining the disposal value from the costs of the spoiled goods accumulated to the point of…
A: In accounting, the cost of spoiled goods refers to the cost of goods that have become unusable or…
Q: PLEASE HELP ME WITH THIS ACCOUNTING PROBLEM! FILL ALL CELLS.
A: 1. Straight-line method :Year 2024: $458,700Year 2025: $458,700 + $458,700 = $917,400Year 2026:…
Q: Accounting was out net income or loss for the year ?
A: Step 1: Define Owner's EquityOwner's equity is an account presented on the balance sheet of a sole…
Q: In july....accounting question
A: Step 1: Define Inventoriesinventories represent the assets held for production or sale by a company.…
Q: Please given answer Accounting question
A: Step 1:Definition of Machine Hour AllocationMachine hour allocation assigns overhead costs to…
Q: Solution for this
A: Explanation: In the given case, we are required to calculate the actual variable overhead rate from…
Q: At the beginning. ..please provide correct answer
A: Step 1: Define Predetermined Overhead RateA predetermined overhead rate is multiplied by the…
Q: Teamboo company's stockholders equity at the beginning solve this question
A: Step 1:Define Statement of Stockholders EquityIt is not required, but many companies will often…
Q: Solution step by step
A: Explanation of Hourly Cost Assignment:Hourly cost assignment involves calculating the cost of a…
Q: accurate response
A: Explanation of Temporary Timing Differences: Temporary timing differences are discrepancies between…
Q: Report the number of missing boxes.
A:
Q: E8-8 (Static) Preparing Cost of Goods Sold Budget [LO 8-3f] Each shade requires a total of $40 in…
A: Introduction:Shadee is preparing a cost of goods sold (COGS) budget for May and June. Each shade…
Q: Business 123 Introduction to Investments May I please have the solution for the following question?…
A: The formula to calculate the conversion price is:Conversion Price=Par Value of the Bond/Conversion…
Q: Francisco leased equipment...accounting question
A: Step 1: Define LiabilityLiabilities are recorded on the left side of the balance sheet. The…
Q: Required information [The following information applies to the questions displayed below.] On…
A: Step 1: This will be the Data Extraction and Organization from Question Grant Date: January 1, Year…
Q: Webber fabricating estimated the following solve this question ❓
A: Step 1: Define Manufacturing CostsThe manufacturing costs of a business include all those costs…
Q: Need help with this question solution general accounting
A: Excess Cash = $800Other Assets = $5,200Equity = $6,000Shares Outstanding = 600 sharesNet Income =…
Q: Need help with this question solution general accounting
A: Step 1: Define Total bank depositsTotal bank deposits are the total sum of money which are submitted…
Q: Given answer Accounting
A: Step 1: Define Cost of Goods SoldIn the context of accounting, the cost of goods sold during a given…
Q: GRFN6215 & BUADG002 Online Classroom 09:05 Question 1 Foxwood Company is a metal and woodcutting…
A:
Q: What was the cost of goods manufactured on these general accounting question?
A: Step 1: Define Process-Costing SystemThe process-costing system is used to evaluate the costs…
Q: I want to correct answer general accounting
A: Step 1: Identify the Initial Investment• Record the Year 0 cash outflow Step 2: Calculate Present…
Q: What amount of interest has accrued as of December 31, 2013 on these accounting question?
A: Step 1: Define Accrued InterestThe interest obtained over a specific time is called accrued…
Q: Get correct answer general accounting
A: Step 1: Define Investment TurnoverInvestment turnover is used to measure how well a company uses its…
Q: ! Required information Use the following information for the Exercises below. Hudson Community…
A:
Q: Ai answer will be get rejected
A: Step 1: Gather Information and Assess the SituationReview the Facts: Thoroughly understand the…
Q: Specify the cost
A: Explanation of Prepaid Expenses:Prepaid expenses are payments made in advance for goods or services…
Q: short answer please
A: Step 1:Gross margin is (Gross profit/ sales)*100 = Gross profit= ( sales - cost of goods sold) Step…
Q: Assume that company solve question ❓
A: Step 1: Define accounts receivable turnover ratioAccounts receivable turnover ratio and days sales…
Q: General Fund Budget and Closing Entries The adjusted preclosing trial balance for Whiskey Run…
A: Estimated Revenues and Other Financing Sources:Estimated Revenues: $46,000Estimated Other Financing…
Q: Begusarai enterprises has...Accounting question
A: Step 1: Define Cash cycleCash cycle refers to the cycle that starts off with paying of cash for raw…
Q: ??
A: FEEL FREE TO ASK FOR CLARIFICATIONS
Q: Hart company made 3,000 book...accounting
A: Hello student! Variances typically refer to the difference between actual costs and standard costs…
Q: I need answer financial
A: After taking into consideration the stock's risk, the cost of equity capital is the return that…
Q: The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances…
A: Here are the steps I took to arrive at the analysis: Identify the Plant Assets: I started by…
Q: Need help with this question solution general accounting
A: Explanation: In the given case, we are required to calculate the Return on Assets (ROA) from the…
Q: Provide correct answer the general accounting question answer do fast
A: Step 1: Define TurnoverThe turnover ratio measures the worth of sales or revenues compared to the…
Q: CALCULATE THE AVOR
A: AVOR = Actual variable overhead costs / Actual direct labor hoursActual variable overhead costs =…
Q: Selected information follows for Wildhorse Select Corporation at December 31: 2024 2023 Bonds…
A: The change in common shares can be calculated by subtracting the common shares at the beginning of…
Q: Explain
A: Explanation of Realization Principle: The realization principle is a fundamental accounting concept…
Q: I want to correct answer general accounting
A: Step 1: Formula Cost of goods sold = Beginning inventory + Purchases - Ending inventory Step 2:…
Q: Watts company uses a predetermined...Accounting question
A: To determine the overapplied or underapplied overhead for Watts Company, we can follow these steps:…
Shorter company had originally expected to earn operating solve this question solution
Step by step
Solved in 2 steps
- Shorter Company had originally expected to earn operating income of $130,000 in the coming year. Shorter's degree of operating leverage is 2.4. Recently, Shorter revised its plans and now expects to increase sales by 20% next year. What is the percent change in operating income expected by Shorter in the coming year?The Blazer Company's EPS last year, EPSo, was $1.50. Blazer expects sales to increase by 15% during the coming year. If Blazer has a degree of operating leverage equal to 1.25 and a degree of financial leverage equal to 3.50, then what is its expected EPS or EPS₁? Hint: First, find DTL where DTL= DOL x DFL. Note: This is a web appendix 14A topic. O $2.48 O $2.87 O $2.02 O $1.66Cordell, Inc., has an operating leverage of 3. Sales are expected to increase by 9% next year. What is the expected change in operating income next year?
- Data are as follows: In year 2020, sales are 150,000 units with Selling price per unit of 10 and VC per unit iof 6.50 per unit. Fixed cost is 155,000 and Interest cost is 90,000. Q3. Assume that the company expects to have sales increase by 20%, what will be the resulting change in EBIT in year 2021? choices: • 33.33% • 26.45% • 25% • 28.38%Provide correct answer. What are the projected sales sales for the last year before the sales?Jim's Espresso expects sales to grow by 10.4% next year. Assume that Jim's pays out 85.9% of its net income. Use the following statements LOADING... and the percent of sales method to forecast: a. Stockholders' equity b. Accounts payable The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. Income Statement Sales $205,430Costs Except Depreciation (99,920)EBITDA $105,510Depreciation (6,070)EBIT $99,440Interest Expense (net) (570)Pretax Income $98,870Income Tax (34,605)Net Income $64,265 Balance Sheet Assets Cash and Equivalents $14,920Accounts Receivable 2,010Inventories 3,950Total Current Assets $20,880Property, Plant and Equipment 10,070Total Assets $30,950 Liabilities…
- Consider the following scenario: Green Caterpillar Garden Supplies Inc.’s income statement reports data for its first year of operation. The firm’s CEO would like sales to increase by 25% next year. 1. Green Caterpillar is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (EBIT). 2. The company’s operating costs (excluding depreciation and amortization) remain at 60% of net sales, and its depreciation and amortization expenses remain constant from year to year. 3. The company’s tax rate remains constant at 25% of its pre-tax income or earnings before taxes (EBT). 4. In Year 2, Green Caterpillar expects to pay $100,000 and $1,759,500 of preferred and common stock dividends, respectively. A. Complete the Year 2 income statement data for Green Caterpillar, then answer the questions that follow. Be sure to round each dollar value to the nearest whole dollar. Green Caterpillar…Consider the following scenario: Green Caterpillar Garden Supplies Inc.'s Income statement reports data for its first year of operation. The firm's CEO would like sales to increase by 25% next year. 1. Green Caterpillar is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before Interest and taxes (EBIT). 2. The company's operating costs (excluding depreciation and amortization) remain at 60% of net sales, and its depreciation and amortization expenses remain constant from year to year. 3. The company's tax rate remains constant at 25% of its pre-tax income or earnings before taxes (EBT). 4. In Year 2, Green Caterpillar expects to pay $100,000 and $1,759,500 of preferred and common stock dividends, respectively. Complete the Year 2 Income statement data for Green Caterpillar, then answer the questions that follow. Be sure to round each dollar value to the nearest whole dollar. Net sales Less: Operating costs, except depreciation…Consider the following scenario: Blue Hamster Manufacturing Inc.'s income statement reports data for its first year of operation. The firm's CEO would like sales to increase by 25% next year. 1. Blue Hamster is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (EBIT). 2. The company's operating costs (excluding depreciation and amortization) remain at 65% of net sales, and its depreciation and amortization expenses remain constant from year to year. 3. The company's tax rate remains constant at 25% of its pre-tax income or earnings before taxes (EBT). 4. In Year 2, Blue Hamster expects to pay $200,000 and $2,280,656 of preferred and common stock dividends, respectively. Complete the Year 2 income statement data for Blue Hamster, then answer the questions that follow. Be sure to round each dollar value to the nearest whole dollar. Blue Hamster Manufacturing Inc. Income Statement for Year Ending December…
- ABC Inc. is a juice producer which has been growing steadily for the past 5 years. According to the expected market demand, the company is planning to grow its sales at 15% next year. Since the company is currently operating at full capacity, fixed assets will also grow proportional to sales, same as current assets and current liabilities. However, long-term debt and equity will not grow proportional to sales but rather management will decide upon thier next year level based on an acceptable level of debt to equity ratio as well as ROE ratio. The company has a dividend pay-out ratio of 40% which the management want to maintain in order to meet the shareholders expectations. Below are the financial statements of ABC Inc. for the year ending Sept 2020. Amounts in 000s Sep-20 Sales 5700 Costs 4200 Taxable Income 1500 Taxes (34%) 510 Net Income 990 Amounts in 000s Sept-20 Sept-20 Cash 200 Accounts Payable 2000 Accounts Receivables 1600 Accrued…ABC Inc. is a juice producer which has been growing steadily for the past 5 years. According to the expected market demand, the company is planning to grow its sales at 15% next year. Since the company is currently operating at full capacity, fixed assets will also grow proportional to sales, same as current assets and current liabilities. However, long-term debt and equity will not grow proportional to sales but rather management will decide upon thier next year level based on an acceptable level of debt to equity ratio as well as ROE ratio. The company has a dividend pay-out ratio of 40% which the management want to maintain in order to meet the shareholders expectations. Below are the financial statements of ABC Inc. for the year ending Sept 2020. In addititon to the planned 15% growth of the next year, the company is considering a future mega project of introducing a new entire production line that can increase its market share by %. The company is planning for this expansion to…(Financial forecasting—percent of sales) Next year’s sales for Cumberland Mfg. are expected to be $22 million. Current sales are $18 million, based on current assets of $5 million and fixed assets of $5 million. The firm’s net profit margin is 5 percent after taxes. Cumberland estimates that current assets will rise in direct proportion to the increase in sales but that its fixed assets will increase by only $150,000. Currently, Cumberland has $2 million in accounts payable (which vary directly with sales), $1 million in long-term debt (due in 10 years), and common equity (including $4 million in retained earnings) totaling $6.5 million. Cumberland plans to pay $750,000 in common stock dividends next year. Required: What are Cumberland’s total financing needs (that is, total assets) for the coming year? Given the firm’s projections and dividend payment plans, what are its discretionary financing needs? Based on your projections, and assuming that the $150,000 expansion in fixed assets…
