(Using common-size financial statements) The S&H Construction Company expects to have total sales next year totaling $15,100,000. In addition, the firm pays taxes at 35 percent and will owe $319,000 in interest expense. Based on last year's operations the firm'smanagement predicts that its cost of goods sold will be 55 percent of sales and operating expenses will total 27 percent. What is your estimate of the firm's net income (after taxes) for the coming year?Complete the pro-forma income statement below: (Round to the nearest dollar.)Pro-Forma Income StatementSales$Cost of goods soldGross profit$Operating expensesNet operating income$Interest expenseEarnings before taxesTaxesNet income

Step 1: Preparation of the pro forma income statement.Pro forma Income StatementSales…

Answered: (Using common-size financial…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Your company forecasts that next year's sales will be $59.00 million, Cost of Goods Sold (COGS) will be 85% of sales, and the Days Payables Outstanding (DPO) ratio will be 22.19. What is the forecasted accounts payable for next year?
The firm had sales of $33 million, operating expenses of $14 million, interest of $4 million and pays a tax rate of 20%. What is the firm’s earnings before interest and taxes?
RPJ Co. has net Income of $2,937, a profit margin of 6.3 percent, a retention ratio of 45 percent, total assets of $52,800, and total debt of $24,300. Assets, current liabilities, and costs are proportional to sales. The company maintains a constant dividend payout ratio and debt-equity ratio and is operating at full capacity. What is the maximum dollar Increase in sales that can be sustained next year assuming no new equity is issued? Multiple Choice O O O O O $2,151 $1,211 $2,804 $2,267 $1,667
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Consider the following scenario: Fuzzy Button Clothing Company’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. Fuzzy Button 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 70.00% of net sales, and its depreciation and amortization expenses remain constant from year to year. 3. The company’s tax rate remains constant at 40% of its pre-tax income or earnings before taxes (EBT). 4. In Year 2, Fuzzy Button expects to pay $100,000 and $896,963 of preferred and common stock dividends, respectively. Complete the Year 2 income statement data for Fuzzy Button, then answer the questions that follow. Round each dollar value to the nearest whole dollar.
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Give me answer
Libscomb Technologies' annual sales are $6,974,991 and all sales are made on credit, it purchases $3,511,535 of materials each year (and this is its cost of goods sold). Libscomb also has $550,869 of inventory, $522,928 of accounts receivable, and $477,584 of accounts payable. Assume a 365 day year. What is Libscomb’s Inventory Turnover?
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