Homework Answers
Answer
- Requirement [a]
Degree of Operating Leverage = Contribution margin / Operating Income or EBIT
= $ 750000 / $ 150000
= 5.00
DOI = 5.00
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ssignment #1 (Chapters 14,5) * Saved 40 Income Statement Year ended December 31, 20xx Sales (30,000...
ment# (Chapters 14,5) i Saved 0 Income Statement Year ended December 31, 20XX Sales (30,000 tires...
ment# (Chapters 14,5) i Saved 0 Income Statement Year ended December 31, 20XX Sales (30,000 tires at $45 each) Less: Variable costs (30,000 tires at $20) $ 1,350,000 600,000 Contribution margin Less: Fixed costs 750,000 600,000 oped Earnings before interest and taxes (EBIT) Interest expense 150,000 75,000 Tint Earnings before taxes (EBT) Income tax expense (30%) 75,000 22,500 rences $ 52,500 Earnings after taxes (EAT) Given this income statement, compute the following a. Degree of operating leverage (Round the final...
Given is the Income Statement for the year ended December 31, 20XX, Statement of Retained Earnings...
Given is the Income Statement for the year ended December 31, 20XX, Statement of Retained Earnings for the year ended December 31, 20XX and Comparative Balance Sheets for 20XW and 20XX of Maris Corporation: Maris Corporation Income Statement Year Ended December 31, 20XX Sales $4,700,000 Cost of goods sold 2,925,000 Gross profits 1,775,000 Selling and administrative expense 630,000 Amortization expense 290,000 Operating income 855,000 Interest expense 52,000 Earnings before taxes 803,000 Taxes 390,000 Earnings after taxes...
2G Help Save Given is the Income Statement for the year ended December 31, 20XX, Statement...
2G Help Save Given is the Income Statement for the year ended December 31, 20XX, Statement of Retained Earnings for the year ended December 31, 20XX and Comparative Balance Sheets for 20XW and 20XX of Maris Corporation: Maris Corporation Income Statement Year Ended December 31, 20xx Sales $5,500,000 Cost of goods sold 3,725,000 Gross profits Selling and administrative expense Amortization expense 1,775,000 710,000 230,000 Operating income Interest expense 835,000 50,000 Earnings before taxes Taxes 785,000 470.000 315,000 Earnings after taxes...
DELL Saved Help Save & 3 Given is the Income Statement for the year ended December...
DELL Saved Help Save & 3 Given is the Income Statement for the year ended December 31, 20XX, Statement of Retained Earnings for the year ended December 31, 20XX and Comparative Balance Sheets for 20XW and 20XX of Maris Corporation: ed Maris Corporation Income Statement Year Ended December 31, 20xx Sales Cost of goods sold Gross profits Selling and administrative expense Amortization expense $5,500,000 3,725,000 1,775,000 710,000 230,00 at Operating income Interest expense nces 835,000 -50,000 Earnings before taxes Taxes...
Blue Hamster Manufacturing Inc.'s income statement reports data for its first year of operation. The firm's...
Blue Hamster Manufacturing Inc.'s income statement reports data for its first year of operation. The firm's CEO would like sales to increase by 25% next year 1. Blue Hamster is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (EBIT) 2. The company's operating costs (excluding depreciation and amortization) remain at 70% of net sales, and its depreciation and amortization expenses remain constant from year to...
Question 2......... ....(10 marks) Income Statement Sony Corp Company For the Year Ended December 31, 2015...
Question 2......... ....(10 marks) Income Statement Sony Corp Company For the Year Ended December 31, 2015 Sales $2,800,000 Less: Cost of goods sold 1,820,000 Gross profits $980,000 Less: Operating expenses 240.000 Operating Profits $ 740,000 Less: Interest expense 70,000 Net profits before taxes $ 670,000 Less: Taxes (40%) 268,000 Net profits after taxes $ 402,000 Less: Cash Dividends 132,000 To: Retained earnings $ 270,000 Sony corp. estimates its sales in 2016 will be $3 million. Interest expense is expected to...
Complete the Year 2 income statement data for Blue Hamster, then answer the questions that follow....
Complete the Year 2 income statement data for Blue Hamster, then answer the questions that follow. Be sure to round each dollar value to the nearest whole dollar Blue Hamster Manufacturing Inc Income Statement for Year Ending December 31 Year 2 Year 1 (Forecasted) $15,000,000 9,000,000 600,000 $5,400,000 540,000 4,860,000 1,944,000 $2,916,000 100,000 2,816,000 1,166,400 $1,649,600 $18,750,000 11,250,000 600,000 Net sales Less: Operating costs, except depreciation and amortization Less: Depreciation and amortization expenses Operating income (or EBIT) Less: Interest expense...
Income Statement For the Year Ended on December 31 J&H Corp. Industry Average Net sales $39,000,000 $48,...
Income Statement For the Year Ended on December 31 J&H Corp. Industry Average Net sales $39,000,000 $48,750,000 Operating costs, except depreciation and amortization 31,200,000 39,000,000 Depreciation and amortization 1,560,000 1,950,000 Total operating costs 32,760,000 40,950,000 Operating income (or EBIT) $6,240,000 $7,800,000 Less: Interest expense 624,000 1,170,000 Earnings before taxes (EBT) $5,616,000 $6,630,000 Less: Taxes (40 % ) 2,246,400 2,652,000 Net income $3,369,600 $3,978,000 information given to him, Jeffery submits a report on January 1 with some important calculations for management...
I need help on this question. Creek Enterprises Income Statement for the Year Ended December 31,...
I
need help on this question.
Creek Enterprises Income Statement for the Year Ended December 31, 2018 Sales revenue ($34,963,000) Less Cost of goods sold Creek Enterprises Income Statement for the Year Ended December 31, 2019 Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses 1000 % $29,980,000 20,995,000 $8,985,000 338 % Less: Operating expenses Seling experse General and administrative expenses 13.3 % $3.041,000 1,774,000 193,000 979,000 Seling expense General and administrative expenses 04 3.6 Lease expense...
Question 1 Cumulative Problem: XYZ Company has sales of $4,800,000, COGS is 40% of sales, operating...
Question 1 Cumulative Problem: XYZ Company has sales of $4,800,000, COGS is 40% of sales, operating expenses are $2,100,000, interest expense $20,000 and depreciation 30,000. Tax rate 40%. Construct their income statement and answer the below: Gross profit is ___. a. 2,400,000 b. 1,920,000 c. 730,000 d. 2,880,000 Question 2 What best describes operating profit margin? a. earnings before interest and tax in relation to sales b. the impact of depreciation on taxes paid c. cost of goods sold in...
ment# (Chapters 14,5) i Saved 0 Income Statement Year ended December 31, 20XX Sales (30,000 tires at $45 each) Less: Variable costs (30,000 tires at $20) $ 1,350,000 600,000 Contribution margin Less: Fixed costs 750,000 600,000 oped Earnings before interest and taxes (EBIT) Interest expense 150,000 75,000 Tint Earnings before taxes (EBT) Income tax expense (30%) 75,000 22,500 rences $ 52,500 Earnings after taxes (EAT) Given this income statement, compute the following a. Degree of operating leverage (Round the final...
2G Help Save Given is the Income Statement for the year ended December 31, 20XX, Statement of Retained Earnings for the year ended December 31, 20XX and Comparative Balance Sheets for 20XW and 20XX of Maris Corporation: Maris Corporation Income Statement Year Ended December 31, 20xx Sales $5,500,000 Cost of goods sold 3,725,000 Gross profits Selling and administrative expense Amortization expense 1,775,000 710,000 230,000 Operating income Interest expense 835,000 50,000 Earnings before taxes Taxes 785,000 470.000 315,000 Earnings after taxes...
DELL Saved Help Save & 3 Given is the Income Statement for the year ended December 31, 20XX, Statement of Retained Earnings for the year ended December 31, 20XX and Comparative Balance Sheets for 20XW and 20XX of Maris Corporation: ed Maris Corporation Income Statement Year Ended December 31, 20xx Sales Cost of goods sold Gross profits Selling and administrative expense Amortization expense $5,500,000 3,725,000 1,775,000 710,000 230,00 at Operating income Interest expense nces 835,000 -50,000 Earnings before taxes Taxes...
Blue Hamster Manufacturing Inc.'s income statement reports data for its first year of operation. The firm's CEO would like sales to increase by 25% next year 1. Blue Hamster is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (EBIT) 2. The company's operating costs (excluding depreciation and amortization) remain at 70% of net sales, and its depreciation and amortization expenses remain constant from year to...
Question 2......... ....(10 marks) Income Statement Sony Corp Company For the Year Ended December 31, 2015 Sales $2,800,000 Less: Cost of goods sold 1,820,000 Gross profits $980,000 Less: Operating expenses 240.000 Operating Profits $ 740,000 Less: Interest expense 70,000 Net profits before taxes $ 670,000 Less: Taxes (40%) 268,000 Net profits after taxes $ 402,000 Less: Cash Dividends 132,000 To: Retained earnings $ 270,000 Sony corp. estimates its sales in 2016 will be $3 million. Interest expense is expected to...
Complete the Year 2 income statement data for Blue Hamster, then answer the questions that follow. Be sure to round each dollar value to the nearest whole dollar Blue Hamster Manufacturing Inc Income Statement for Year Ending December 31 Year 2 Year 1 (Forecasted) $15,000,000 9,000,000 600,000 $5,400,000 540,000 4,860,000 1,944,000 $2,916,000 100,000 2,816,000 1,166,400 $1,649,600 $18,750,000 11,250,000 600,000 Net sales Less: Operating costs, except depreciation and amortization Less: Depreciation and amortization expenses Operating income (or EBIT) Less: Interest expense...
Income Statement For the Year Ended on December 31 J&H Corp. Industry Average Net sales $39,000,000 $48,750,000 Operating costs, except depreciation and amortization 31,200,000 39,000,000 Depreciation and amortization 1,560,000 1,950,000 Total operating costs 32,760,000 40,950,000 Operating income (or EBIT) $6,240,000 $7,800,000 Less: Interest expense 624,000 1,170,000 Earnings before taxes (EBT) $5,616,000 $6,630,000 Less: Taxes (40 % ) 2,246,400 2,652,000 Net income $3,369,600 $3,978,000 information given to him, Jeffery submits a report on January 1 with some important calculations for management...
I
need help on this question.
Creek Enterprises Income Statement for the Year Ended December 31, 2018 Sales revenue ($34,963,000) Less Cost of goods sold Creek Enterprises Income Statement for the Year Ended December 31, 2019 Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses 1000 % $29,980,000 20,995,000 $8,985,000 338 % Less: Operating expenses Seling experse General and administrative expenses 13.3 % $3.041,000 1,774,000 193,000 979,000 Seling expense General and administrative expenses 04 3.6 Lease expense...
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