The contribution format income statement for Huerra Company for last year is given below: Total Unit Sales $ 4,000,000 $ 80.00 Variable expenses 2,800,000 56.00 Contribution margin 1,200,000 24.00 Fixed expenses 840,000 16.80 Net operating income 360,000 7.20 Income taxes @ 30% 108,000 2.16 Net income $ 252,000 $ 5.04 The company had average operating assets of $2,000,000 during the year. At the beginning of the year, the company uses $200,000 of cash (received on accounts receivable) to repurchase and retire some of its common stock At the beginning of the year, the company uses $200,000 of cash (received on accounts receivable) to repurchase and retire some of its common stock. (Round your intermediate calculations and final answers to 2 decimal places.) Effect Margin 6.30selected answer incorrect % not attempted Turnover 2.00selected answer incorrect not attempted ROI 12.60selected answer incorrect % not attempted
The contribution format income statement for Huerra Company for last year is given below: Total Unit Sales $ 4,000,000 $ 80.00 Variable expenses 2,800,000 56.00 Contribution margin 1,200,000 24.00 Fixed expenses 840,000 16.80 Net operating income 360,000 7.20 Income taxes @ 30% 108,000 2.16 Net income $ 252,000 $ 5.04 The company had average operating assets of $2,000,000 during the year. At the beginning of the year, the company uses $200,000 of cash (received on accounts receivable) to repurchase and retire some of its common stock At the beginning of the year, the company uses $200,000 of cash (received on accounts receivable) to repurchase and retire some of its common stock. (Round your intermediate calculations and final answers to 2 decimal places.) Effect Margin 6.30selected answer incorrect % not attempted Turnover 2.00selected answer incorrect not attempted ROI 12.60selected answer incorrect % not attempted
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The contribution format income statement for Huerra Company for last year is given below:
| Total | Unit | |||
| Sales | $ | 4,000,000 | $ | 80.00 |
| Variable expenses | 2,800,000 | 56.00 | ||
| Contribution margin | 1,200,000 | 24.00 | ||
| Fixed expenses | 840,000 | 16.80 | ||
| Net operating income | 360,000 | 7.20 | ||
| Income taxes @ 30% | 108,000 | 2.16 | ||
| Net income | $ | 252,000 | $ | 5.04 |
The company had average operating assets of $2,000,000 during the year.
At the beginning of the year, the company uses $200,000 of cash (received on
At the beginning of the year, the company uses $200,000 of cash (received on accounts receivable) to repurchase and retire some of its common stock. (Round your intermediate calculations and final answers to 2 decimal places.)
|
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