11. Morgan llc has base sales of 100 and depreciation expense is 10% of sales. Assuming...
11. Morgan llc has base sales of 100 and depreciation expense is 10% of sales. Assuming a 10% increase in sales, depreciation expense for the first pro forma year is:
-
10
-
11
-
12
-
None of the above
24. Gadson acquires digital corporation which is upstream in the marketing chain. this is an example of:
-
Diversification
-
Vertical integration
-
Horizontal integration
-
None of the above
27. Tester corporation has a beta of 2.0. the current t-bill rate is 1% and the stock market's historical return has exceeded the risk-free rate by 8%. the cost of equity for tester is:
-
16%
-
17%
-
18%
-
19%
Homework Answers
Hi
As per policy we will solve only top most question here.
11) Sales = 100
depreciation = 10% of Sales
=10%*100 = 10
Sales next year = 100*(1+10%) = 110
Depreciation for pro forma year = 110*10%
= 11
hence 11 is correct option here.
Thanks
Add Answer to:
11. Morgan llc has base sales of 100 and depreciation
expense is 10% of sales. Assuming...
2. If the current ratio is 2.0 and current liabilities are 100 then inventory is: 200...
2. If the current ratio is 2.0 and current liabilities are 100 then inventory is: 200 100 150 None of the above 3. If the return on assets is .15 and average assets are 100, the EPS is: 15 115 85 Unable to tell from data given 7. Arnold llc has base sales of 100 and rent expense is 12% of sales. Assuming a 15% increase in sales, rent expense for the first pro forma year is: 13.80 14.80 15.80...
Q7.Jett Gas LLC has total sales of $1,479,600 and costs of $914,300. Depreciation is $41,650 and...
Q7.Jett Gas LLC has total sales of $1,479,600 and costs of $914,300. Depreciation is $41,650 and the tax rate is 34 percent. The firm does not have any interest expense. What is the operating cash flow? Q8. Smith Auto Dealership had beginning net fixed assets of $216,525 and ending net fixed assets of $208,650. During the year, assets with a combined book value of $7,844 were sold. Depreciation for the year was $41,320. What is the net cash flow from...
10) ABC Corporation has $450,000 in gross profit with $120,000 in depreciation expense. 123 Corporation has...
10) ABC Corporation has $450,000 in gross profit with $120,000 in depreciation expense. 123 Corporation has $450,000 in gross profit with $40,000 in depreciation expense. Each company had $75,000 in selling and administration expenses. The tax rate for each company is 18%. Calculate the cash flow for each company. Explain any differences.
Pompeli, Inc, has sales of $46,500, costs of $21,600, depreciation expense of $1.90o, and interest expense...
Pompeli, Inc, has sales of $46,500, costs of $21,600, depreciation expense of $1.90o, and interest expense of $1,650. If the tax rate is 21 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculations.) Operating cash flow < Prev 80f 10 İİİ Next > e n e to search
Question 1 3 pts A certain company has sales of $500,000, costs of $350,000, depreciation expense...
Question 1 3 pts A certain company has sales of $500,000, costs of $350,000, depreciation expense of $30,000 and a tax rate of 21%. Sarah has computed operating cash flow to be $124,800. Which of the following is FALSE? Sarah's answer is correct. Sarah's answer is off by $30,000. Sarah could have used any of the methods to compute Operating Cash Flow. Sarah would have gotten the same answer using any of the methods. None of the above is false.
Problem 10-3 Calculating Projected Net Income [LO1] A proposed new investment has projected sales of $550,000....
Problem 10-3 Calculating Projected Net Income [LO1] A proposed new investment has projected sales of $550,000. Variable costs are 40 percent of sales, and fixed costs are $130,500; depreciation is $50,750. Prepare a pro forma income statement assuming a tax rate of 23 percent. What is the projected net income? (Input all amounts as positive values. Do not round intermediate calculations.)
Griffin's Goat Farm, Inc., has sales of $676,000, costs of $338,000, depreciation expense of $82,000, interest...
Griffin's Goat Farm, Inc., has sales of $676,000, costs of $338,000, depreciation expense of $82,000, interest expense of $51,000, a tax rate of 24 percent, and paid out $42,000 in cash dividends. 10 points What is the addition to retained earnings? (Do not round intermediate calculations.) Addition to retained earnings d earnings eBook
Creating a Pro forma income statement Adapted from Advanced Problems for Spreadsheet Application, Financial Management Core...
Creating a Pro forma income statement Adapted from Advanced Problems for Spreadsheet Application, Financial Management Core Concepts, Brooks 3rd Edition, Problem 2 Green Planet, a restaurant supply company has given you the following financial data for 2017: Green Planet Historical Income Statement 2017 $12,345,000.00 Revenue 185,175.00 $12,159,825.00 Returns Net Revenue Costs $5,555,250.00 COGS $ 1,975,200.00 $ 1,481,400.00 Fixed Costs S G & A $ Depreciation 988,320.00 $ 2,159,655.00 802,425.00 EBIT Interest Expense $ Taxable income 1,357,230.00 The tax rate in...
The Berndt Corporation expects to have sales of $10 million. Costs other than depreciation are expected...
The Berndt Corporation expects to have sales of $10 million. Costs other than depreciation are expected to be 80% of sales, and depreciation is expected to be $1 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Brendt's federal-plus-state tax rate is 35%. Berndt has no debt. Set up an income statement. What is Berndt's expected net cash flow? Enter your answer in dollars. For example, an answer...
The Berndt Corporation expects to have sales of $10 million. Costs other than depreciation are expected...
The Berndt Corporation expects to have sales of $10 million. Costs other than depreciation are expected to be 80% of sales, and depreciation is expected to be $1 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Brendt's federal-plus-state tax rate is 35%. Berndt has no debt. Set up an income statement. What is Berndt's expected net cash flow? Enter your answer in dollars. For example, an answer...
10) ABC Corporation has $450,000 in gross profit with $120,000 in depreciation expense. 123 Corporation has $450,000 in gross profit with $40,000 in depreciation expense. Each company had $75,000 in selling and administration expenses. The tax rate for each company is 18%. Calculate the cash flow for each company. Explain any differences.
Pompeli, Inc, has sales of $46,500, costs of $21,600, depreciation expense of $1.90o, and interest expense of $1,650. If the tax rate is 21 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculations.) Operating cash flow < Prev 80f 10 İİİ Next > e n e to search
Question 1 3 pts A certain company has sales of $500,000, costs of $350,000, depreciation expense of $30,000 and a tax rate of 21%. Sarah has computed operating cash flow to be $124,800. Which of the following is FALSE? Sarah's answer is correct. Sarah's answer is off by $30,000. Sarah could have used any of the methods to compute Operating Cash Flow. Sarah would have gotten the same answer using any of the methods. None of the above is false.
Griffin's Goat Farm, Inc., has sales of $676,000, costs of $338,000, depreciation expense of $82,000, interest expense of $51,000, a tax rate of 24 percent, and paid out $42,000 in cash dividends. 10 points What is the addition to retained earnings? (Do not round intermediate calculations.) Addition to retained earnings d earnings eBook
Creating a Pro forma income statement Adapted from Advanced Problems for Spreadsheet Application, Financial Management Core Concepts, Brooks 3rd Edition, Problem 2 Green Planet, a restaurant supply company has given you the following financial data for 2017: Green Planet Historical Income Statement 2017 $12,345,000.00 Revenue 185,175.00 $12,159,825.00 Returns Net Revenue Costs $5,555,250.00 COGS $ 1,975,200.00 $ 1,481,400.00 Fixed Costs S G & A $ Depreciation 988,320.00 $ 2,159,655.00 802,425.00 EBIT Interest Expense $ Taxable income 1,357,230.00 The tax rate in...
Most questions answered within 3 hours.
-
Jason Allen is saving for an Australian vacation in three years.
He estimates that he will...
asked 3 minutes ago -
starting in the radial vein list in order all the vessels through
which an erythrocyte will...
asked 9 minutes ago -
Management at Work
As the training and development manager at the Litter*Bit*Better
Cat Litter Company, part...
asked 11 minutes ago -
What is the significance of the constraints in a physical model?
What part do distinct constraints...
asked 1 hour ago -
a student was diagnosed with myopia (nearshightedness). He can
comfortably read a newspaper when it is...
asked 1 hour ago -
Consider a 3m x 3m window in a house. The thermal conductivity
is reported to be...
asked 1 hour ago -
Why has California been the favorite destination of large number
of secondary migrants?
asked 2 hours ago -
Do not neglect the old for the new. The existing business must
not lose priority simply...
asked 5 hours ago -
Kylie is a single mom with two dependent children,
Tanner, age 7 and Olivia, age 11....
asked 6 hours ago -
Phosphorous + bromine = phosphorous tribromide. If 35.0 g of
bromine are reacted and 27.9 grams...
asked 8 hours ago -
Derive the long wavelength limit of the Planck energy density
distribution
asked 7 hours ago -
Calculate the pH of each of the following solutions.
0.50 M HBr
3.1×10−4 M KOH
4.2×10−5...
asked 11 hours ago