Homework Answers
As the firm cost have a direct relation with the sales of the company and as the sales will grow the expenses will also grow in same proportion to the increase in sales amount but because of this the profit margin will remain the same and as the sales are increased by 4% i.e. $6000*4%=$ 6,240 but the profit margin as remain the same as compared to previous year. Therefore the net income of the firm will be as follows $6240*6.5%=$406. The answer C is the correct answer.
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Question 1 1 points Save Answer The firm has sales of $6,000 and a profit margin...
GORILA has current sales of $9,500 and a profit margin of 12 percent. The firm estimates...
GORILA has current sales of $9,500 and a profit margin of 12 percent. The firm estimates that sales will increase by 9% next year and that all costs will vary in direct relationship to sales. What is the pro forma net income? Select one: a. $1,442.60 b. $1,242.60 c. $2,242.60 d. $2,742.00
Question 3 The company expects sales of S672 500 next year. The profit margin is 4.6...
Question 3 The company expects sales of S672 500 next year. The profit margin is 4.6 percent and the firm has a 15 percent dividend payout ratio. (Note: profit margin - Net Income/Sales) What is the projected increase in retained earnings ? 1 points Save Answer O a. $26.29s O b. $17.501 O c. $4,640 O d. $20,640 O e. $30,935
A firm has sales of $63,000, current assets of $13,000, current liabilities of $14,500, net fixed assets of $74,000, and a profit margin of 7.50%. The firm has no long-term debt and does not plan on a...
A firm has sales of $63,000, current assets of $13,000, current liabilities of $14,500, net fixed assets of $74,000, and a profit margin of 7.50%. The firm has no long-term debt and does not plan on acquiring any. The firm does not pay any dividends. Sales are expected to increase by 4% next year. If all assets, short-term liabilities, and costs vary directly with sales, how much additional equity financing is required for next year? A. $4,914 B. $2,000 C....
19.10 Percent of sales: Given the data for Cattail Corporation in Problem 19.9, if you assume...
19.10 Percent of sales: Given the data for Cattail Corporation in Problem 19.9, if you assume that all balance sheet items also vary with the change in sales, develop a pro forma balance sheet for Cattail for the next fiscal year. Assuming that the firm did not sell or repurchase stock, what is the cash dividend implied by the pro forma income statement and balance sheet? Percent of sales: Cattail Corporation's financial statements for the fiscal year just ended are...
19.10 Percent of sales: Given the data for Cattail Corporation in Problem 19.9, if you assume...
19.10 Percent of sales: Given the data for Cattail Corporation in Problem 19.9, if you assume that all balance sheet items also vary with the change in sales, develop a pro forma balance sheet for Cattail for the next fiscal year. Assuming that the firm did not sell or repurchase stock, what is the cash dividend implied by the pro forma income statement and balance sheet? Percent of sales: Cattail Corporation's financial statements for the fiscal year just ended are...
19:10 Percent of sales: Given the data for Cattail Corporation in Problem 19 9, if you...
19:10 Percent of sales: Given the data for Cattail Corporation in Problem 19 9, if you assume that all balance sheet items also vary with the change in sales, develop a pro forma balance sheet for Cattaid for the next fiscal year. Assuming that the firm did not sel or repurchase stock, what is the cash dividend implied by the pro forma income statement and balance sheet? Percent of sales: Cattail Corporation's financial statements for the fiscal year just ended...
A firm has sales of $1,000,000, a net profit margin of 6%, total assets of $1,200,000,...
A firm has sales of $1,000,000, a net profit margin of 6%, total assets of $1,200,000, and a total debt ratio of 50%. It pays no dividends. The return on equity is ------ 4 percent 5 percent 6 percent 10 percent
(Financial forecasting-percent of sales) Tulley Appliances, Inc. projects next year's sales to be $19.7 million. Cu...
(Financial forecasting-percent of sales) Tulley Appliances, Inc. projects next year's sales to be $19.7 million. Current sales are at $14.8 million, based on current assets of $4.7 million and fixed assets of $4.8 on. The firm's net profit margin is 4.7 percent after axes. Tulley forecasts at current assets will rise in direct proportion the increase n sales, t fixed assets wil ncrease by ont 51 O. Currently T has $1.5 million in accounts payable (which vary directly with sales),...
Top executive officers of Jordan Company, a merchandising firm, are preparing the next year's budget. The...
Top executive officers of Jordan Company, a merchandising firm, are preparing the next year's budget. The controller has provided everyone with the current year's projected income statement. Current Year $2,100,000 1,470,000 630,000 286,000 Sales revenue Cost of goods sold Gross profit Selling & administrative expenses $ 344,000 Net income Cost of goods sold is usually 70 percent of sales revenue, and selling and administrative expenses are usually 10 percent of sales plus a fixed cost of $76,000. The president has...
Top executive officers of Thornton Company, a merchandising firm, are preparing the next year's budget. The...
Top executive officers of Thornton Company, a merchandising firm, are preparing the next year's budget. The controller has provided everyone with the current year's projected income statement. Current Year Sales revenue $1,800,000 1,260,000 540,000 254,000 Cost of goods sold Gross profit Selling & administrative expenses $ 286,000 Net income Cost of goods sold is usually 70 percent of sales revenue, and selling and administrative expenses are usually 10 percent of sales plus a fixed cost $74,000. The president has announced...
Question 3 The company expects sales of S672 500 next year. The profit margin is 4.6 percent and the firm has a 15 percent dividend payout ratio. (Note: profit margin - Net Income/Sales) What is the projected increase in retained earnings ? 1 points Save Answer O a. $26.29s O b. $17.501 O c. $4,640 O d. $20,640 O e. $30,935
19.10 Percent of sales: Given the data for Cattail Corporation in Problem 19.9, if you assume that all balance sheet items also vary with the change in sales, develop a pro forma balance sheet for Cattail for the next fiscal year. Assuming that the firm did not sell or repurchase stock, what is the cash dividend implied by the pro forma income statement and balance sheet? Percent of sales: Cattail Corporation's financial statements for the fiscal year just ended are...
19.10 Percent of sales: Given the data for Cattail Corporation in Problem 19.9, if you assume that all balance sheet items also vary with the change in sales, develop a pro forma balance sheet for Cattail for the next fiscal year. Assuming that the firm did not sell or repurchase stock, what is the cash dividend implied by the pro forma income statement and balance sheet? Percent of sales: Cattail Corporation's financial statements for the fiscal year just ended are...
19:10 Percent of sales: Given the data for Cattail Corporation in Problem 19 9, if you assume that all balance sheet items also vary with the change in sales, develop a pro forma balance sheet for Cattaid for the next fiscal year. Assuming that the firm did not sel or repurchase stock, what is the cash dividend implied by the pro forma income statement and balance sheet? Percent of sales: Cattail Corporation's financial statements for the fiscal year just ended...
A firm has sales of $1,000,000, a net profit margin of 6%, total assets of $1,200,000, and a total debt ratio of 50%. It pays no dividends. The return on equity is ------ 4 percent 5 percent 6 percent 10 percent
(Financial forecasting-percent of sales) Tulley Appliances, Inc. projects next year's sales to be $19.7 million. Current sales are at $14.8 million, based on current assets of $4.7 million and fixed assets of $4.8 on. The firm's net profit margin is 4.7 percent after axes. Tulley forecasts at current assets will rise in direct proportion the increase n sales, t fixed assets wil ncrease by ont 51 O. Currently T has $1.5 million in accounts payable (which vary directly with sales),...
Top executive officers of Jordan Company, a merchandising firm, are preparing the next year's budget. The controller has provided everyone with the current year's projected income statement. Current Year $2,100,000 1,470,000 630,000 286,000 Sales revenue Cost of goods sold Gross profit Selling & administrative expenses $ 344,000 Net income Cost of goods sold is usually 70 percent of sales revenue, and selling and administrative expenses are usually 10 percent of sales plus a fixed cost of $76,000. The president has...
Top executive officers of Thornton Company, a merchandising firm, are preparing the next year's budget. The controller has provided everyone with the current year's projected income statement. Current Year Sales revenue $1,800,000 1,260,000 540,000 254,000 Cost of goods sold Gross profit Selling & administrative expenses $ 286,000 Net income Cost of goods sold is usually 70 percent of sales revenue, and selling and administrative expenses are usually 10 percent of sales plus a fixed cost $74,000. The president has announced...
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