Vista Corporation had originally expected to earn operating income of $250,000 in the coming year. Alpine's degree of operating leverage is 3.5. Recently, Alpine revised its plans and now expects to increase sales by 15% next year. What is the percent change in operating income expected by Alpine in the coming year?
Q: I need this question answer General Accounting
A: Step 1: Define Effect of Collection Period on Cash FlowCash flow from accounts receivable is…
Q: Beginning WIP 26,000
A: Concept of Process CostingProcess costing is a method used in industries where production is…
Q: I need this question answer please contact answer general Accounting
A: Step 1: Define Government DebtThe government debt or the national debt is the total amount owed by…
Q: Provide correct answer general Accounting
A: Step 1: Define Asset Turnover RatioThe total asset turnover ratio is one of the activity financial…
Q: Net Income?
A: Explanation of Net Income: Net income represents the total profit a company earns after deducting…
Q: I want both answer
A: Explanation of Overhead Rate:The overhead rate is a calculation used in cost accounting to allocate…
Q: Financial Accounting
A: Explanation: The data given in the question pertains to the year 2014. But, it also states that the…
Q: Why does business model analysis affect accounting choices?
A: ReferencesEpstein, B. J., & Jermakowicz, E. K. (2020). Wiley IFRS 2020: Interpretation and…
Q: Don't use ai solution general Accounting
A: In variable costing, only costs that change with the level of production are included in the product…
Q: Please provide correct answer general Accounting
A: Step 1: Define Factory Overhead Factory overheads refer to the indirect expenses incurred by a…
Q: Hello tutor please given correct answer general Accounting
A: Step 1: Define Annual Pension PlanThe employee benefits in which the employer do regular…
Q: Hii expert please given answer general Accounting
A: To calculate Jorge's realized gain or loss, we follow these steps: Determine the adjusted basis of…
Q: Do fast answer of this accounting questions
A: Step 1: Define Inventory Types:For a manufacturing concern, inventory has three classifications: raw…
Q: MOH COST
A: Explanation of Budgeted Manufacturing Cost per Unit:The budgeted manufacturing cost per unit…
Q: Need ROA.
A: To calculate the firm's asset turnover using DuPont analysis, we use the following formula: Return…
Q: METLOCK COMPANY Comparative Balance Sheet Assets Dec. 31, 2025 Dec. 31, 2024 Cash $33,900 $12,500…
A: Step 1:Cash Flow Statement:-Cash Flow Statement is the statement prepared at the end of accounting…
Q: NONE
A: We can calculate the beginning inventory using the Cost of Goods Sold (COGS) formula:COGS =…
Q: Need help with this accounting questions
A: To calculate the project's Year 3 cash flow, we need to determine the after-tax operating cash flow,…
Q: Question No. 18 - Calculate the firm's asset turnover using Dupont analysis if it has a profit…
A: Explanation of Profit Margin: Profit margin is a key financial metric that shows how much profit a…
Q: What is the current stock price for this financial accounting?
A: To calculate the current stock price, we use the Gordon Growth Model (Dividend Discount…
Q: General accounting
A: Step 1: Define Return on EquityTo calculate return on equity, the net income of a company is divided…
Q: Please Tutor provide answer for this accounting prblm
A: Explanation of Days Sales Outstanding (DSO): Days Sales Outstanding represents the average number of…
Q: Provide correct answer financial accounting
A: Step 1: Define Gross and Net WagesGross and net wages are two items typically reported on an…
Q: Hello tutor please provide correct answer financial accounting
A: Step 1: Define Profit MarginA corporation's profitability and financial stability are largely…
Q: On January 1, 2020, Cullumber Inc. Issued.... If you give me correct answer this financial…
A: Step 1: Define Diluted Earnings Per ShareDiluted earnings per share are earnings per share that are…
Q: Alvarez Company's break-even point in units is.... Solve these general accounting question
A: Step 1: Define Net IncomeNet income is the amount reported on the income statement of the…
Q: Sumit manufacturing purchased equipment solution this accounting accounting questions
A: Step 1: Definition of Cash Proceeds on Sale of an AssetCash proceeds refer to the actual amount…
Q: Help
A: Explanation of Base Utilities:Base utilities refer to the fixed annual cost incurred by the resort…
Q: What is Profit?
A: The question requires the determination of the gross profit rate. Gross profit rate is a financial…
Q: A balance sheet shows cash... Please provide answer this financial accounting question
A: Step 1: Define Current AssetsCurrent assets become cash in one year or less and current liabilities…
Q: Don't use ai please give me answer general accounting
A: To calculate the maturity value of the note, you need to determine the interest and then add it to…
Q: What amount of interest expense would the company report in 2019 on these financial accounting…
A: Step 1: Define Interest ExpenseIn accounting, interest expense refers to the regular payment of the…
Q: Financial Accounting Question-6 point
A: Explanation of Accounts Receivable Turnover:Accounts receivable turnover is a financial ratio that…
Q: Financial Accounting please need answer
A: Step 1: Define Check registerThe check register is used to record the transactions in the checking…
Q: General Accounting
A: Step 1: Define Operating CycleAn operating cycle is the sum of the inventory holding period and the…
Q: Financial Accounting Question please true answer
A: Step 1: Introduction to the Dividend Payout RatioThe dividend payout ratio refers to the total…
Q: Tech Manufacturing has the following data for the past six months: please answer the accounting…
A: Highest Activity Cost = Highest Total Overhead Cost = $13,500, Lowest Total Overhead Cost =…
Q: SUBJECT: ACCOUNTING 7 MARKS
A: Explanation of Beginning Inventory: Beginning inventory represents the initial stock of goods that…
Q: General Accounting
A: To calculate the expected return using the Capital Asset Pricing Model (CAPM), the formula…
Q: Kindly help me with general accounting question
A: Step 1: Definition of Manufacturing OverheadManufacturing overhead includes all indirect costs…
Q: 47. Financial Accounting: What treatment applies to stock dividend declarations between balance…
A: The correct treatment for stock dividend declarations between the balance sheet and issue dates…
Q: Can you please give me correct solution for this general accounting question?
A: Step 1: Define Absorption Costing Income StatementThe absorption costing income statement presents…
Q: The Leo Company had
A: Explanation of Sales Revenue:Sales revenue is the total income generated from selling goods or…
Q: General Accounting Question please answer do fast
A: Step 1: Define Recognized Gain and Stock Basis in a Section 351 TransactionUnder Section 351 of the…
Q: Provide correct answer financial accounting
A: Step 1: Define GainGain is an increased value of a product asset owned by a person or company. Gains…
Q: Please provide this question solution general accounting
A: Step 1: Definition of Standard Overhead RateThe standard overhead rate is the estimated overhead…
Q: General accounting
A: Step 1:First calculate the profit margin: Profit margin = Sales revenue - Cost of goods sold -…
Q: The per unit standards for direct solve this accounting questions
A: Step 1: Definition of Direct Labor VarianceThe total direct labor variance measures the difference…
Q: None
A: Dollar return on an investment refers to the total return on an investment measured in dollar terms…
Q: None
A: Step 1: Define ExpensesExpense accounts are considered as temporary accounts. Meaning, these are…
Vista corporation had originally expected solve this accounting questions
Step by step
Solved in 2 steps
- Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1 and by 5% in Year 2. Its operating profitability ratio (OP) is 10%, and its capital requirement ratio (CR) is 80%? What are the projected sales in Years 1 and 2? What are the projected amounts of net operating profit after taxes (NOPAT) for Years 1 and 2? What are the projected amounts of total net operating capital (OpCap) for Years 1 and 2? What is the projected FCF for Year 2?Smiley Corporations current sales and partial balance sheet are shown here. Sales are expected to grow by 10% next year. Assuming no change in operations from this year to next year, what are the projected spontaneous liabilities?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?
- Cordell, 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?Cordell, 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?fill in the blank 1 % Increase or Decrease?Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1 and by 5% in Year 2. Its operating profitability ratio (OP) is 10%, and its capital requirement ratio (CR) is 80%?a. What are the projected sales in Years 1 and 2?b. What are the projected amounts of net operating profit after taxes (NOPAT) for Years 1 and 2? c. What are the projected amounts of total net operating capital (OpCap) for Years 1 and 2?d. What is the projected FCF for Year 2?
- (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…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…
- 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…The following tables contain financial statements for Dynastatics Corporation. Although the company has not been growing, it now plans to expand and will increase net fixed assets (i.e., assets net of depreciation) by $200,000 per year for the next 4 years, and it forecasts that the ratio of revenues to total assets will remain at 1.50. Annual depreciation is 20% of net fixed assets at the beginning of the year. Fixed costs are expected to remain at $90 and variable costs at 70% of revenue. The company’s policy is to pay out one-half of net income as dividends and to maintain a book debt ratio of 20% of total capital. INCOME STATEMENT, 2019(Figures in $ thousands) Revenue $ 1,800 Fixed costs 90 Variable costs (70% of revenue) 1,260 Depreciation 160 Interest (6% of beginning-of-year debt) 18 Taxable income 272 Taxes (at 35%) 95 Net income $ 177 Dividends $ 89 Addition to retained…The following tables contain financial statements for Dynastatics Corporation. Although the company has not been growing, it now plans to expand and will increase net fixed assets (i.e., assets net of depreciation) by $200,000 per year for the next 5 years, and it forecasts that the ratio of revenues to total assets will remain at 1.50. Annual depreciation is 10% of net fixed assets at the beginning of the year. Fixed costs are expected to remain at $68 and variable costs at 80% of revenue. The company’s policy is to pay out two-thirds of net income as dividends and to maintain a book debt ratio of 20% of total capital. INCOME STATEMENT, 2019(Figures in $ thousands) Revenue $ 1,800 Fixed costs 68 Variable costs (80% of revenue) 1,440 Depreciation 80 Interest (8% of beginning-of-year debt) 24 Taxable income 188 Taxes (at 40%) 75 Net income $ 113 Dividends $ 75 Addition to…
