The company BAC inc. sells a single product for $ 5 a unit. Its annual fixed operating costs are estimated at $ 180,000 including $ 30,000 in depreciation. Its unit variable cost is estimated at $ 2. The amount of interest paid annually to bondholders is $ 45,000. The corporate tax rate is 35%. a) Estimate the general breakeven point of the business? b) Estimate the company's cash flow breakeven point? c) Estimate the operating leverage of the business at a sales level of d) 120,000 units? e) Estimate the company's financial leverage for an EBIT of $ 50,000? f) Estimate the total leverage of the business at a sales level of 80,000 units?

Q: What is locals net profit margin?

A: Net profit margin =

Q: has total sales of $1,500,000 and costs of $993,500. Depreciation is $60,000 and the tax rate is 21…

A: Total sales=$15,00,000 Cost=$993,500 Depreciation=$60,000 Tax rate=21% Required: Operating cash…

Q: So Long, Inc, has sales of $334,000, costs of $145,400, depreciation expense of $63,200 and interest…

A: The question is based on the concept of Financial Management.

Q: 1. You have the following information on the income statement this year: Unit sales: 1,000…

A: Financial statements are official records companies maintain to inform different stakeholders about…

Q: I need help with question is solution

A: To determine Bubble Corp.'s net profit margin, we need to calculate its net income first and then…

Q: Keller Cosmetics maintains an operating profit margin of 5% and asset turnover ratio of 6. a. What…

A: We need to use below equations to solve above problems.ROA = Operating profit margin* Assets…

Q: A company has $600,000 in Sales, $400,000 in Costs, and $100,000 in Depreciation expenses. If the…

A: Operating cash flow can be calculated as revenues less costs after taking effect of taxes.

Q: Local Co. has sales of $10.9 million and cost of sales of $6.1 million. Its selling, general and…

A: Ratio Analysis is the method of checking the company's operational efficiency, liquidity, and…

Q: Ann's Custom Catering has sales of $214,000, depreciation of $9,000, and net working capital of…

A: Sales = $ 214,000 Depreciation = $ 9000 Net working capital = $ 16000 Tax rate = 34%

Q: Rain company whose tax rate is 40% has a total asset of P500,000,000 and earnings before interest…

A: Interest Payment is calculated on the debt part out of the total funds of the company. Net Income is…

Q: A firm has sales of $4,740, costs of $2.540, Interest paid of $169, and depreciation of $473. The…

A: Cash coverage ratio can be calculated by using formula below.

Q: Broward Manufacturing recently reported the following information: Net income ROA BEP: Interest…

A: Return on Invested Capital (ROIC) measures how well a business earns returns on its capital…

Q: Last year, Jackson Tires reported net sales of $60 million and total operating costs (including…

A: The concept of economic value added (EVA), which is a cash basis tax adjusted measure of a…

Q: Bolero Corporation has one long term loan (interest bearing debt) of $700,000 at an interest rate of…

A: Given: Particulars Amount Rate Debt $700,000 5.20% Equity $1,000,000 16.00%

Q: Edmonds Industries is forecasting the following income statement: Sales Operating costs excluding…

A: Variable costs are costs which changes along with change in activity level. Variable cost ratio is…

Q: iRobot has total sales of $380.000, costs are $270,000, and depreciation is $30,000. The tax rate is…

A: Sales$380,000Cost$270,000Depreciation$30,000Tax 25%Required:Operating Cash flow =?

Q: Pfizer currently has a Net Profit Margin of 5%, its corporate tax rate is 21% and its annual…

A: The Times Interest Earned (TIE) ratio, also known as the interest coverage ratio, is a measure of a…

Q: provide answer for all needed

A:

Q: Use the following scenario to solve A-C. H2X Incorporated has accounts payable of $400,000 (a…

A: WACC means weighted average cost of all the sources through which funds are raised. WACC is equal to…

Q: Last year, Cayman Corporation had sales of $6,766,704, total variable costs of $2,557,445, and total…

A: "As you have posted multiple questions to answer in a single post, according to honoring guidelines…

Q: The most recent financial statements for Williamson, Inc., are shown here (assuming no income…

A: Any Company experiencing growth in future required to meet the demand and supply in the market,…

Q: Gibson Company sales for the Year 1 were $4 million. The firm’s variable operating cost ratio was…

A: The question is based on the concept of Financial Management. The leverage is the utilization of the…

Q: Income and Cash Flow Analysis. The Berndt Corporation expects to have sales of $12 million. Costs…

A: A cash flow statement shows the exact amount of a company's cash inflows and outflows over a period…

Q: Please solve this problem

A: Definition of Net Profit Margin:The net profit margin is a financial ratio that tells you how much…

Q: 40. A company has sales of $1,250,000, cost of goods sold of $750,000, depreciation expenses of…

A: Operating cash flow means net income of the business after excluding the effect of non cash expenses…

Q: Consider the following simplified financial statements for the Wims Corpor (assuming no income…

A: When the company has taken borrowings from third parties or financial agencies in order to fulfill…

Q: A large corporation has annual sales revenues of $6 billion. The corporation currently earns 2.25%…

A: Operating profit increases by 3 days sales which will be calculated by using equation below.Increase…

Q: the specifics for a company are as follows: tax rate 35% Equity = 6,300,000…

A: A company may raise funds from multiple sources like common and preferred stock, debt, bonds, etc. A…

Q: which option is correct

A: Given information:Annual sales of Tally Ho Inn = $737,000Earnings before interest and taxes (EBIT) =…

Q: Your firm has total sales of $1,320. Costs are $730 and depreciation is $110. The tax rate is 22…

A: Total sales = $1,320Costs = $730Depreciation expense = $110Tax rate = 22%Required:Operating cash…

Q: Vhea Corp has an operating profit of P1,200 produced from P9,800 in sales. If Vhea has no interest…

A: Formula: Net Profit= Gross operating Profit (1- Tax Rate)- Dividend Net Profit Margin= Net…

Q: Last year, Cayman Corporation had sales of $6,608,800, total variable costs of $2,695,237, and total…

A: Degree of Combined Leverage= Contribution / Earnings before tax=( Sales - Variable cost ) / ( Sales…

Q: You have gathered this information on a firm: $500,000 sales, $10,000 cash dividends, $300,000 cost…

A: Free cash flow is an important measure or metric of a company’s financial performance. It represents…

Q: Eagle Products’ EBIT is $500, its tax rate is 35%, depreciation is $25, capital expenditures are…

A: In finance and in the domain of valuation free cash flow is a very important metric.Essentially free…

Q: Lemon Auto Wholesalers had sales of $1,400,000 last year, and cost of goods sold represented 77…

A: Earnings after tax (EAT) is the measure of a company's net profitability.

Q: solve this answer

A: To answer the questions about Local Co.'s financial performance, we will calculate the gross margin,…

Q: provide correct answer for A,B and C

A: Step 1: Step 2: Step 3: Step 4:

Q: Consider the following simplified financial statements for the Yoo Corporation. Assume there are no…

A: External financing needed (EFN) represents the extra funding a company seeks to fuel its operations…

Q: The firm had sales of $100 million, Cost of goods sold of $40 million, SG&A of $10 million and…

A: Information Provided: Sales = $100 million COGS = $40 million SG&A = $10 million Depreciation =…

Q: Edmonds Industries is forecasting the following income statement: Sales Operating costs excluding…

A: To calculate the level of sales that would generate a net income of $1,130,000, we need to determine…

Q: utterfly Tractors had $15.50 million in sales last year. Cost of goods sold was $8.30 million,…

A: Net income is amount of cash money available after making payment to the cost of goods sold and…

Q: Last year, Cayman Corporation had sales of $6,834,793, total variable costs of $2,832,135, and total…

A: Earnings Per Share (EPS) is a financial metric that represents the portion of a company's profit…

Q: hane  Co. has sales of $11.5 million and cost of sales of $5.6 million. Its selling, general and…

A: Gross margin is the amount of profit achieved by the company after doing payment for the cost of…

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.