William Burris invested $100,000 in an Australian-based franchise, Rent Your Boxes, purchasing three territories in the Washingtonarea. After finding out the company had gone bankrupt, he rallied 10 other franchisees to join him and created a new company, RentOur Boxes. Assume Rent Our Boxes had net income of $39, 902 with net sales of $296,585.What was its profit margin on net sales? (Round your answer to the nearest hundredth percent.)

Answered: William Burris invested $100,000 in an…

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 28CE

See similar textbooks

Similar questions

William Burris invested $100,000 in an Australian-based franchise, Rent Your Boxes, purchasing three territories in the Washington area. After finding out the company had gone bankrupt, he rallied 10 other franchisees to join him and created a new company, Rent Our Boxes. Assume Rent Our Boxes had net income of $38,302 with net sales of $280,585. What was its profit margin on net sales? (Round your answer to the nearest hundredth percent.) Profit margin Prev 14 of 16 Next > ..... rer 90
Ahmad is an entrepreneur and owner of the company. He thinks whether should he continue his activity and hired you as an analyst in order to carry out a general business analysis. He gave you the general data of from his draftbook: Initial capital 550000 AZN. Salaries for hired employees 11000 AZN. Rented office for company 2000 AZN. Communal services 1000 AZN. Goods obtained 110000 AZN. Sales were 70% of inventory with Trade surcharge of 45 %. 40% of cash were received. Profit Tax 20%. All expenses were paid. write income statement
Suppose an investor gave you $150,000 to start your business. You gave this investor 50 percent of your company for this investment. Your revenue year one was $479,600; your cost of goods sold was $239,600; and your total operating expenses were $144,080. What ROI will your investor receive this year for his 50 percent ownership in the company?
Konawalski’s Kustom Erdapfel Chips, Inc., is the maker of gourmet German-style potato chips. The company began business three years ago in rural North Carolina and grew quickly as the product became known. Konawalski is now poised for national growth. Some analysts call the firm the next Krispy Kreme. The company pays a dividend of $0.05 per share. Earnings per share are currently $0.60, and analysts expect both earnings and dividends to grow at 17 percent per year for the next 5 years. The stock price is expected to increase in value by 60 percent over the next 3 years. If you believe that investors require a 17 percent rate of return on a stock of this risk, what price would you recommend as the IPO price for Konawalski? Use Table II to answer the question. Do not round intermediate calculations. Round your answer to the nearest cent.
Konawalski’s Kustom Erdapfel Chips, Inc., is the maker of gourmet German-style potato chips. The company began business three years ago in rural North Carolina and grew quickly as the product became known. Konawalski is now poised for national growth. Some analysts call the firm the next Krispy Kreme. The company pays a dividend of $0.10 per share. Earnings per share are currently $0.50, and analysts expect both earnings and dividends to grow at 20 percent per year for the next five years. The stock price is expected to increase in value by 70 percent over the next three years. If you believe that investors require a 20 percent rate of return on a stock of this risk, what price would you recommend as the IPO price for Konawalski?
Konawalski’s Kustom Erdapfel Chips, Inc., is the maker of gourmet German-style potato chips. The company began business three years ago in rural North Carolina and grew quickly as the product became known. Konawalski is now poised for national growth. Some analysts call the firm the next Krispy Kreme. The company pays a dividend of $0.10 per share. Earnings per share are currently $0.40, and analysts expect both earnings and dividends to grow at 20 percent per year for the next 5 years. The stock price is expected to increase in value by 70 percent over the next 3 years. If you believe that investors require a 20 percent rate of return on a stock of this risk, what price would you recommend as the IPO price for Konawalski? Use Table II to answer the question. Do not round intermediate calculations. Round your answer to the nearest cent.
Suppose an investor gave you 150,000 to start a business.you gave investor 50 percent of your investment .Your revenue one was $479,600,your goods sold was $239,600 and your total operating expenses was $144,080.What ROI will your investor receive this year for his 50 percent ownership in the company?
In the following scenario you are the CEO of a corporation (please answer A, B & C) Your company consists of 500 employees and recorded a net profit in 2021 of $9M. You notice your call center (75 employees) seems to be taking up a substantial amount of expense, as it accounted for $3M. You have the option to outsource the call center, costing the 75 employee's their jobs, but saving you $2.5M a year in expense. What do you do; keep the 75 employees at the current salary or outsource the department to save $2.5M annually? Why did you pick what you did? Same question as above, except your 2021 net profit was $1M. Do you outsource to shed $2.5M in expense? Why or why not? Were your answers to A & B the same or different? Did your answers contradict which group you picked in your initial post?
Wally is pleased with your work. He asks you for help on one more project - and then you can take a well-deserved break! He gives you this information that he has collected on one of AndrewCo's key subsidiaries, Oscar & Ollie Inc.: . • Sales $165,000 Net Income = $14,800 Dividends $3,300 Total Debt = $68,000 Total Equity = $51,000 = • Wally wants to know - (a) What is the sustainable growth rate? (b) If Oscar & Ollie grows at this rate, how much new borrowing will take place in the coming year, assuming a constant debt-equity ratio? (c) What growth rate could be supported with no outside financing at all?
Calculate Sanchez’s operating income if it keeps the Rhode Island store open and opens another store with revenues and costs identical to the Rhode Island store (including a cost of $22,000 to acquire equipment with a one-year useful life and zero disposal value). Opening this store will increase corporate overhead costs by $4,000. Is Maria Lopez’s statement about the effect of adding another store like the Rhode Island store correct? Explain.
Global Athletes Pty Ltd is a large sports goods retailer. It purchases ‘sweet spot’ badminton set rackets for $110 each from Sport Australia Pty Ltd, a large manufacturer of sports products. Sport Australia has an annual turnover of more than 30 Million and has an accruals basis accounting system. Global Athletes Pty Ltd plans to sell the badminton set rackets at a 200% mark-up to its customers. In January last year, it purchased 100 racquets. However, in April, it discovered that 10 of these racquets had design faults, and it returned them to the manufacturer and obtained a full refund. Explain the GST consequences of this arrangement for both parties.
Please do A-D thank you.

SEE MORE QUESTIONS

Recommended textbooks for you

SWFT Individual Income Taxes

Accounting

ISBN:

9780357391365

Author:

YOUNG

Publisher:

Cengage

SWFT Comprehensive Vol 2020

Accounting

ISBN:

9780357391723

Author:

Maloney

Publisher:

Cengage

Auditing: A Risk Based-Approach to Conducting a Q…

Accounting

ISBN:

9781305080577

Author:

Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:

South-Western College Pub

SWFT Individual Income Taxes

Accounting

ISBN:

9780357391365

Author:

YOUNG

Publisher:

Cengage

SWFT Comprehensive Vol 2020

Accounting

ISBN:

9780357391723

Author:

Maloney

Publisher:

Cengage

Auditing: A Risk Based-Approach to Conducting a Q…

Accounting

ISBN:

9781305080577

Author:

Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:

South-Western College Pub

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Financial And Managerial Accounting

Accounting

ISBN:

9781337902663

Author:

WARREN, Carl S.

Publisher:

Cengage Learning,

College Accounting (Book Only): A Career Approach

Accounting

ISBN:

9781337280570

Author:

Scott, Cathy J.

Publisher:

South-Western College Pub

SEE MORE TEXTBOOKS