Homework Answers
Answer a:
Answer b1:
Answer b2:
Correct answer is:
Increase profitability
Explanation:
Revised earnings after taxes based on Ms Carr's suggestion is higher at $85,484 compared to the existing earnings after taxes of $72,940.
Add Answer to:
Cost of goods sold Depreciation expense Earnings after taxes Earnings before taxes Earnings before taxes Interest...
Carr Auto Wholesalers had sales of $1,510,000 in 2015, and cost of goods sold represented 76...
Carr Auto Wholesalers had sales of $1,510,000 in 2015, and cost of goods sold represented 76 percent of sales. Selling and administrative expenses were 12 percent of sales. Amortization expense was $19,000 and interest expense for the year was $10,000. The firm's tax rate is 30 percent. a. Compute earnings after taxes using Percentage-of-Sales Method. (Input all answers as positive values.) CARR AUTO WHOLESALERS Income Statement For the Year Ended December 31, 2015 TClick to select) Cick to select) Interest...
7. Carr Auto Wholesalers had sales of $900,000 in 2015, and cost of goods sold represented...
7. Carr Auto Wholesalers had sales of $900,000 in 2015, and cost of goods sold represented 65 percent of sales. Selling and administrative expenses were 9 percent of sales. Amortization expense was $10,000, and interest expense for the year was $8,000. The firm's tax rate is 30 percent. a. Compute earnings after taxes using percentage-of-sales method. b. Assume the firm hires Ms. Hood, an efficiency expert, as a consultant. She suggests that by increasing selling and administrative expenses to 12...
increasing selling and administrative expenses to 15 percent of sales, sales can be increased to $1,230,100....
increasing selling and administrative expenses to 15 percent of sales, sales can be increased to $1,230,100. The extra sales effort will also reduce cost of goods sold to 69 percent of sales. (There will be a larger markup in prices as a result of more aggressive selling) Depreciation expense will remain at $12,000. However, more automobiles will have to be carried in inventory to satisfy customers, and interest expense will go up to $20,900. The firm's tax rate will remain...
Lemon Auto Wholesalers had sales of $1,180,000 last year, and cost of goods sold represented 73...
Lemon Auto Wholesalers had sales of $1,180,000 last year, and cost of goods sold represented 73 percent of sales. Selling and administrative expenses were 13 percent of sales. Depreciation expense was $12,000 and interest expense for the year was $13,000. The firm's tax rate is 30 percent a. Compute earnings after taxes Lemon Auto Wholesalers Income Statement
b-1. Assume the firm hires Ms. Carr, an efficiency expert, as a consultant. She suggests that...
b-1. Assume the firm hires Ms. Carr, an efficiency expert, as a consultant. She suggests that by increasing selling and administrative expenses to 15 percent of sales, sales can be increased to $1,230,100. The extra sales effort will also reduce cost of goods sold to 69 percent of sales. (There will be a larger markup in prices as a result of more aggressive selling.) Depreciation expense will remain at $12,000. However, more automobiles will have to be carried in inventory...
Selling and administrative expense Depreciation expense Sales Interest expense Cost of goods sold Taxes 312,000 195,000...
Selling and administrative expense Depreciation expense Sales Interest expense Cost of goods sold Taxes 312,000 195,000 1,680,000 121,000 550,000 166,000 Jonas Brothers Cough Drops Income Statement
preparing the income statement Question 4 Total: 20 marks Part A Brown Auto Wholesalers had sales...
preparing the income statement
Question 4 Total: 20 marks Part A Brown Auto Wholesalers had sales of $800,000 in 2015 and cost of goods sold represented 70% of sales. Selling and administrative expenses were 15% of sales. Depreciation expense was $10,000 and interest expense for the year was $12,000. The firm's tax rate is 30%. Required: Prepare an income statement and show earnings after taxes. (5 marks)
Dividends paid? Net sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid...
Dividends paid?
Net sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Less: Taxes Net income $21,415 16,408 1611 3,396 1282 $ 2.114 740 $ 1,374 Galaxy Interiors 2017 and 2018 Balance Sheets is in millions) Cash Accounts receivabe Inventory Total Ne lixed assets 2017 2018 $ 668 $ 237 1.611 1.527 848 2.942 $6.127 4.771 17 489 17. 107 Accounts payable Notes payable Total long-term debt Common stock Retained earnings Total liab. &...
Prepare an income statement and compute earnings per share, with formulas. Sales Depreciation expense Cost of...
Prepare an income statement and compute earnings per share, with
formulas.
Sales Depreciation expense Cost of goods sold Interest expense Selling and administrative expense Common shares outstanding Taxes Preferred stock dividends $ $ $ $ $ $ $ $ 66,832,000,000 1,000,000,000 33,449,000,000 506,000,000 18,602,000,000 2,490,000,000 3,465,000,000 100,000,000
5) Iris Income Statement Cost of Goods Sold 320 Depreciation Expense 35 Interest Expense 20 Operating...
5) Iris Income Statement Cost of Goods Sold 320 Depreciation Expense 35 Interest Expense 20 Operating Expense (excluding depreciation) 115 Sales 690 What was Iris Inc's earnings before interest and taxes (EBIT) 6) Iris Balance Sheet Accounts Payable and Accruals 65 Accounts Receivable 63 Accumulated Depreciation (175) Cash 31 Common Stock 120 Fixed Assets (gross) 390 Inventory 129 Long-Term Debt 200 Retained Earnings 65 What is Iris Inc.'s Total Assets? 7) Flying Tigers, Inc., has net sales of $796,000 and...
Carr Auto Wholesalers had sales of $1,510,000 in 2015, and cost of goods sold represented 76 percent of sales. Selling and administrative expenses were 12 percent of sales. Amortization expense was $19,000 and interest expense for the year was $10,000. The firm's tax rate is 30 percent. a. Compute earnings after taxes using Percentage-of-Sales Method. (Input all answers as positive values.) CARR AUTO WHOLESALERS Income Statement For the Year Ended December 31, 2015 TClick to select) Cick to select) Interest...
7. Carr Auto Wholesalers had sales of $900,000 in 2015, and cost of goods sold represented 65 percent of sales. Selling and administrative expenses were 9 percent of sales. Amortization expense was $10,000, and interest expense for the year was $8,000. The firm's tax rate is 30 percent. a. Compute earnings after taxes using percentage-of-sales method. b. Assume the firm hires Ms. Hood, an efficiency expert, as a consultant. She suggests that by increasing selling and administrative expenses to 12...
increasing selling and administrative expenses to 15 percent of sales, sales can be increased to $1,230,100. The extra sales effort will also reduce cost of goods sold to 69 percent of sales. (There will be a larger markup in prices as a result of more aggressive selling) Depreciation expense will remain at $12,000. However, more automobiles will have to be carried in inventory to satisfy customers, and interest expense will go up to $20,900. The firm's tax rate will remain...
Lemon Auto Wholesalers had sales of $1,180,000 last year, and cost of goods sold represented 73 percent of sales. Selling and administrative expenses were 13 percent of sales. Depreciation expense was $12,000 and interest expense for the year was $13,000. The firm's tax rate is 30 percent a. Compute earnings after taxes Lemon Auto Wholesalers Income Statement
Selling and administrative expense Depreciation expense Sales Interest expense Cost of goods sold Taxes 312,000 195,000 1,680,000 121,000 550,000 166,000 Jonas Brothers Cough Drops Income Statement
preparing the income statement
Question 4 Total: 20 marks Part A Brown Auto Wholesalers had sales of $800,000 in 2015 and cost of goods sold represented 70% of sales. Selling and administrative expenses were 15% of sales. Depreciation expense was $10,000 and interest expense for the year was $12,000. The firm's tax rate is 30%. Required: Prepare an income statement and show earnings after taxes. (5 marks)
Dividends paid?
Net sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Less: Taxes Net income $21,415 16,408 1611 3,396 1282 $ 2.114 740 $ 1,374 Galaxy Interiors 2017 and 2018 Balance Sheets is in millions) Cash Accounts receivabe Inventory Total Ne lixed assets 2017 2018 $ 668 $ 237 1.611 1.527 848 2.942 $6.127 4.771 17 489 17. 107 Accounts payable Notes payable Total long-term debt Common stock Retained earnings Total liab. &...
Prepare an income statement and compute earnings per share, with
formulas.
Sales Depreciation expense Cost of goods sold Interest expense Selling and administrative expense Common shares outstanding Taxes Preferred stock dividends $ $ $ $ $ $ $ $ 66,832,000,000 1,000,000,000 33,449,000,000 506,000,000 18,602,000,000 2,490,000,000 3,465,000,000 100,000,000
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