The Franklin Dog & Puppy Motel has current Sales of $15,000 and a Profit Margin of 5%. The firm estimates that sales will increase by 10% while Costs are expected to vary directly with Sales. What is the pro forma Net Income expected to be?
Q: financial accounting
A: Step 1: Definition of Operating incomeThe operating income is amount earned by the organizations…
Q: Give me Answer
A: Concept of Cost of Goods Sold (COGS)Cost of Goods Sold (COGS) represents the direct costs associated…
Q: Company would record the cost of the equipment
A: Explanation of Capitalized Cost of Equipment:The capitalized cost of equipment refers to all…
Q: A fixed asset with a cost of dollar 42,200 and accumulated depreciation of dollar 36,500 is sold for…
A: Concept of Book ValueThe book value of an asset represents its net worth after accounting for…
Q: General Accounting
A: Step 1: Contribution margin ratio Basis: Sales so the sales ratio is 100%Contribution margin ratio =…
Q: Please give me answer general accounting question
A: Given Costs: Direct materials: $22,000Indirect materials: $5,500Indirect labor: $9,800Factory…
Q: What is the total par value of the issued shares of this financial accounting question?
A: Step 1: IntroductionThe total par value includes only the par value of issued shares and does not…
Q: None
A: Step 1:In the given case, the issue price is greater than the face value; it results in a premium on…
Q: Get correct answer accounting questions
A: Step 1: Definition of Interest on a Note ReceivableInterest on a note receivable refers to the…
Q: Dowson corporation 2018 average collection period is
A: Explanation of Accounts Receivable:Accounts receivable refers to the amount of money a company is…
Q: Accounting question
A: The question requires the determination of the beta of the stock using the CAPM. Beta (β) is the…
Q: General accounting
A: Step 1: Definition of Freight-InFreight-in refers to the transportation cost incurred by a company…
Q: General Accounting question
A: Step 1: Define Plantwide Overhead RateThe Plantwide Overhead Rate is the rate at which overhead…
Q: choose best answer
A: Step 1: Definition of Prepaid InsurancePrepaid Insurance refers to the amount paid for an insurance…
Q: Hello teacher please solve this problem
A: Step 1: Total variable overhead at 86 guests Total variable overhead at 86 guests = Supplies +…
Q: Cool Comfort currently sells 360 Class A spas, 520 Class C spas, and 230 deluxe model spas each…
A: Concept of Sales ErosionSales erosion occurs when the introduction of a new product leads to a…
Q: General accounting
A: Step 1: Definition of Return on Equity (ROE)The Return on Equity (ROE) ratio measures how…
Q: I want the correct answer with accounting
A: To calculate the sales volume variance for total revenue, we use the following formula: Sales Volume…
Q: For your initial post, answer the following questions on this course MGT 305 What has been the most…
A: One of the most confusing aspects of MGT 305 has been understanding the complexities of leadership…
Q: Accounting question
A: Tesla's cost of equity capital can be calculated using the Capital Asset Pricing Model (CAPM)…
Q: Summit manufacturing products solve this question
A: Step 1: Define Labor Quantity VarianceThe Labor Quantity Variance (Efficiency Variance) measures how…
Q: How much is the direct labor efficiency variance?
A: To solve for the direct labor efficiency variance, we use the following formula and steps:Correct…
Q: ?? Financial accounting question
A: Step 1: Define Net Income and Cash FlowNet Income - The profit a company earns after subtracting all…
Q: GENERAL ACCOUNTING 3
A: Explanation of Beginning and Ending Assets: Beginning and ending assets represent the total value of…
Q: Cool Comfort currently sells 360 Class A spas, 520 Class C spas, and 230 deluxe model spas each…
A: The question requires the determination of the value of erosion.Business erosion is defined as the…
Q: Correct option? ?
A: Step 1: Define Ending Capital (Retained Earnings)The statement of retained earnings calculates the…
Q: Need help with this financial accounting question
A: Step 1:First, calculate the units started and completed: Units started and completed = Units…
Q: Gnomes R Us just paid a dividend of $3.22 per share. The company has a dividend payout ratio of 64…
A: Image.ExplanationTo determine the stock price of Gnomes R Us, we first calculated the company's…
Q: ?
A: Step 1: Analysis of information givenCash Paid to Suppliers = $145,000Beginning Accounts Payable…
Q: Answer? ? General accounting question
A: Step 1: Define High-Low MethodThe high-low method is a cost estimation technique used to separate…
Q: What is the opereting cash flow?
A: Earnings Before Taxes (EBT):EBT = Total Sales - Costs - Depreciation= $1,349,800 - $903,500 -…
Q: Calculate the depreciation expense
A: Concept of DepreciationDepreciation refers to the systematic allocation of an asset's cost over its…
Q: A company’s fixed monthly expenses are $35,000, and its contribution margin ratio is 62%. Assuming…
A: Explanation of Net Operating Income:The net operating income (NOI) represents the profit a company…
Q: Provide financial accounting question
A: The cost of common stock using the Capital Asset Pricing Model (CAPM) equation is calculated as: re=…
Q: Multiple Choice 2-32 Educational Incentives (LO 2.14) Wendy is a single taxpayer and pays tuition of…
A: Wendy is not eligible for a tuition deduction because the tuition and fees deduction expired after…
Q: MCQ
A: Debt-to-equity ratio = Debt / Equity0.40 = $350,000 / Equity Equity = $350,000 / 0.40Equity =…
Q: Need help with this question solution general accounting
A: As per CAPM, Cost of common stock = Risk-free rate + Beta*Market risk Premium Cost of common stock…
Q: General ACCOUNT
A: Step 1: Definition of Days Sales Outstanding (DSO)Days Sales Outstanding (DSO) is a financial metric…
Q: What is the total number of equivalent unit for materials during may ?
A: Since materials are added at the beginning of the process, they are treated as 100% complete for all…
Q: Need help with this accounting questions
A: Step 1: Definition of Interest PayableInterest payable refers to the amount of interest expense that…
Q: What is the effective after tax interest expense for the firm of this financial accounting question?
A: Step 1: Define After-Tax Interest ExpenseThe After-Tax Interest Expense represents the actual cost…
Q: Can you please provide solution this general accounting question?
A: Step 1: Define Cash Flows from Operating ActivitiesCash flows from operating activities (CFO)…
Q: Want to this question answer general Accounting
A: Step 1: Define Work-in-Process (WIP) Inventory CalculationThe Work-in-Process (WIP) Inventory…
Q: Please answer the following requirements on these financial accounting question
A: Given data:Operating earnings = $350,000Sale price of stock = $225,000Original purchase price =…
Q: Zombie Corp
A: The Equity Multiplier is calculated using the DuPont formula:ROE = Profit Margin * Total Asset…
Q: The Willow Mills Company mills barley into flour. The equivalent units are measured in terms of tons…
A: Explanation of Equivalent Units of Production (EUP):Equivalent Units of Production (EUP) measure the…
Q: 16 Financial Accounting
A: Concept of Fixed CostsFixed costs are business expenses that do not change regardless of the number…
Q: Help
A: Step 1: Definition of Unit CostsUnit costs are calculated to determine the cost incurred per unit…
Q: expert of general accounting answer me?
A: Step 1: Definition of Asset Turnover RatioThe Asset Turnover Ratio measures a company's efficiency…
Q: Kenwooe would report a gross profit
A: Explanation of Gross Profit:The gross profit is the difference between a company's total sales…
abc general accounting
Step by step
Solved in 2 steps
- Sedgwick Inc. is considering Plan 1 which is estimated to have sales of $40,000 and costs of $15,500. The company currently has sales of $37,000 and costs of $14,000.Compare plans using incremental analysis. If Plan 1 is selected, there would be incremental decreaseincrease in profit by $ .Your business plan for your proposed start-up firm envisions first-year revenues of $120,000, fixed costs of $30,000, and variable costs equal to one-third of revenue.a. What are expected profits based on these expectations?b. What is the degree of operating leverage based on the estimate of fixed costs and expected profits?c. If sales are 10% below expectation, what will be the decrease in profits?d. Show that the percentage decrease in profits equals DOL times the 10% drop in sales.e. Based on the DOL, what is the largest percentage shortfall in sales relative to original expectations that the firm can sustain before profits turn negative?f. What are break-even sales at this point?g. Confirm that your answer to (f) is correct by calculating profits at the break-even level of sales.What percentage will the opereting income increase?
- The following table presents sales forecasts for Golden Gelt Giftware. The unit price is $30. The unit cost of the giftware is $25. Year Unit Sales 20, 000 2. 31, 200 14, 900 5, 700 Thereafter It is expected that net working capital will amount to 25% of sales in the following year. For example, the store will need an initial (year 0) investment in working capital of 0.25 x 20,000 x $30 = $150,000. Plant and equipment necessary to establish the giftware business will require an additional investment of $197,000. This investment will be depreciated in an asset class with a CCA rate of 25%. We will assume that the firm has other assets in this asset class. After 4 years, the equipment will have an economic and book value of zero. The firm's tax rate is 35%. The discount rate is 10%. What is the net present value of the project? (Round your answer to the nearest whole dollar amount.) NPV $What percentage will the opereting income increase? Please solve this questionGidget has a new widget to bring to market. If the firm goes directly to market with the product, there is a 60% chance of success. However, the firm can conduct customer segment research, which will take a year and cost $5,000,000. By going through research, the company can better target potential customers and increase the probability of success to 75%. If successful, the widget will bring a present value profit (at the time of initial selling) of $90 million. If unsuccessful, the present value profit is only $15 million. The appropriate discount rate is 10%. Calculate the NPV for conducting customer segment research. (Enter whole numbers, e.g. 5 million should be 5,000,000)
- Slosh Cleaning Corporation services both residential and commercial customers. Slosh expects the following operating results next year for each type of customer: Residential Commercial Sales P60,000 P140,000Contribution margin ratio 50% 30% Slosh expects to have P50,000 in fixed expenses next year. What would Slosh's peso sales revenues from Commercial customers have to be next year in order to generate a profit of P166,000?Charlevoix Cases makes mobile phone cases. The company has collected the following price and cost characteristics: Sales price $ 12.00 per case Variable costs 5.50 per case Fixed costs 403,000 per year Assume that the company plans to sell 77,000 units annually. Consider requirements (b), (c), and (d) independently of each other. Required: What will be the operating profit? What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 10 percent? Note: Do not round intermediate calculations. What is the impact on operating profit if variable costs per unit decrease by 20 percent? Increase by 10 percent? Note: Do not round intermediate calculations. Suppose that fixed costs for the year are 20 percent lower than projected and variable costs per unit are 20 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much? Note: Do not round intermediate…How much does operating income increases? If Mike wants a $4,000 profit, what's the min price it should accept for each cooler?
- You estimate that your sheep farm will generate 1.5 million of profits on sales of 4.4 million under normal economic conditions, and that the degree of operating leverage is 6.3. What will sales be if profits turn out to be 1.9 million? Enter your answer in millions, rounded to two decimal places. Number millionThe following table presents sales forecasts for Golden Gelt Giftware. The unit price is $40. The unit cost of the giftware is $25. Year 1 2 3 4 Thereafter Unit Sales 22,000 30,000 14,000 5,000 0 It is expected that net working capital will amount to 20% of sales in the following year. For example, the store will need an initial (Year O) investment in working capital of 0.20 × 22,000 × $40 = $176,000. Plant and equipment necessary to establish the giftware business will require an additional investment of $200,000. This investment will be depreciated straight-line over 3 years. The firm's tax rate is 30%. The discount rate is 20%. a. What is the net present value of the project? Note: Do not round intermediate calculations. Round your answer to the nearest whole dollar amount. b. By how much does NPV increase if the firm takes immediate 100% bonus depreciation? a. Net present value b. Increase in NPV $ 284,622The following table presents sales forecasts for Golden Gelt Giftware. The unit price is $40. The unit cost of the giftware is $25. Year Unit Sales 1 22,000 2 30,000 3 14,000 4 5,000 Thereafter 0 It is expected that net working capital will amount to 20% of sales in the following year. For example, the store will need an initial (Year 0) investment in working capital of 0.20 × 22,000 × $40 = $176,000. Plant and equipment necessary to establish the giftware business will require an additional investment of $200,000. This investment will be depreciated using MACRS and a 3-year life. After 4 years, the equipment will have an economic and book value of zero. The firm’s tax rate is 30%. The discount rate is 20%. Use the MACRS depreciation schedule. a. What is the net present value of the project? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)
