ZuoTi.Pro
Question

INCOME STATEMENT (Thousands of dollars) Net revenues $7,000 (2,781) (1,809) (912) $ (5,502) (223) $ (1,275) (190) $1,085 (434) 651 Cost of goods sold Operating expenses Research & development expense Operating costs excluding depreciation Depreciation and amortization expense Operating income (EBIT) Interest expense Taxable income Taxes Net income Preferred dividends Net income available to common shareholders $ 642 Dividends 321 Addition to retained earning:s 321In this example, the firm pays half of its earnings as dividends to its stockholders and retains the other half. This is done for simplicity here, but real firms weigh a multitude of factors in setting their dividends. This issue will be covered in your finance course Check Your Understanding The gross margin for this fictional company is: 14.7% 33.3% 9.2% 60.3% 18.2% If the firm has 200,000 common shares outstanding, its earnings per share (EPS) is while its dividends per share (DPS) is With its earnings, a firm has a decision to make about whether to pay common dividends or On the income statement, interest expense is preferred dividends are and common dividends areWages are considered a(n) when it incurs them, because the future benefits that this spending is A company usually expenses expected to bring are very uncertain and difficult to time

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

2) EPS Net in ceme available f No. of shasce 642 00o 21001000 3.2) Total No of shases 53 211000 2, 001 000 1 605 A) or retin it in the buuineu 4 vea $190

0 0
Add a comment
Know the answer?
Add Answer to:
INCOME STATEMENT (Thousands of dollars) Net revenues $7,000 (2,781) (1,809) (912) $ (5,502) (223) $ (1,275)...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • A main element of financial statement analysis is the use of common-size financial statements, also called...

    A main element of financial statement analysis is the use of common-size financial statements, also called "vertical analysis." A common-size balance sheet divides each account's value by the value of total assets, while a common-size income statement divides each entry by net sales revenue Common-size balance sheets immediately show how a firm's assets, liabilities, and equity are distributed. Common-size income statements give a quick snapshot of how various expenses and types of income relate to sales revenue. The following common-size...

  • Empire Industries forecasts net income this coming year as shown here (in thousands of dollars). Approximately...

    Empire Industries forecasts net income this coming year as shown here (in thousands of dollars). Approximately 150,000 of Empire's earnings will needed to make new, positive-NVP investments. Unfortunately, Empire's managers are expected to waste 10% of its net income on needless perks, pet projects, and other expenditures that do not contribute to the firm, All remaining income will be returned to shareholders through dividends and share repurchase. a. What are the two benefits of debt financing for Empire? B. By...

  • Balance Sheet as of December 31, 2018 and 2017 (In thousands of dollars) Current liabilities: Accounts...

    Balance Sheet as of December 31, 2018 and 2017 (In thousands of dollars) Current liabilities: Accounts payable lities and Equity Current assets: Cash and marketable securities87 $ 86 Accrued wages and t Accounts receivable Inventory $ 64 s s6 156 146 372 358 637$ 586 162 146 205 196 306 Notes payable Total $613 S 588Total Fixed assets: Long-tere debt Gross plant and equipeent Less: Accumulated depreciation Net plant and equipment Other long-ters assets $1,118 176 942 3 912 Stockholders'...

  • The Verbrugge Publishing Company's 2016 balance sheet and income statement are as follows (in millions of...

    The Verbrugge Publishing Company's 2016 balance sheet and income statement are as follows (in millions of dollars). Balance Sheet Current assets $168 Current liabilities $42 Net fixed assets 153 Advance payments 78 Goodwill 15 Reserves 6 $6 preferred stock, $112.50 par value (1,200,000 shares) 135 $10.50 preferred stock, no par, callable at $150 (60,000 shares) 9 Common stock, $1.50 par value (6,000,000 shares) 9 Retained earnings 57 Total assets $336 Total claims $336 Income Net sales $540.0 Operating expense 516.0...

  • 3. Income statement The income statement, also known as the profit and loss (P&L) statement, provides...

    3. Income statement The income statement, also known as the profit and loss (P&L) statement, provides a snapshot of the financial performance of a company during a specified period of time. It reports a firm's gross income, expenses, net income, and the income that is available for distribution to its preferred and common shareholders. The income statement is prepared using the generally accepted accounting principles (GAAP) that match the firm's revenues and expenses to the period in which they were...

  • complete the year 2 income statement data for cute camel Dute Camel Woodcraft Company's income statement...

    complete the year 2 income statement data for cute camel Dute Camel Woodcraft Company's income statement reports data for its first year of operation. The firm's CEO would like sales to increase by 25% next rear 1. Cute Camel 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 65% of net sales, and...

  • The Verbrugge Publishing Company's 2018 balance sheet and income statement are as follows (in millions of...

    The Verbrugge Publishing Company's 2018 balance sheet and income statement are as follows (in millions of dollars). Balance Sheet Current assets $168 Current liabilities $42 Net fixed assets 153 Advance payments 78 Goodwill 15 Reserves 6 $6 preferred stock, $112.50 par value (1,200,000 shares) 135 $10.50 preferred stock, no par, callable at $150 (60,000 shares) 9 Common stock, $1.50 par value (6,000,000 shares) 9 Retained earnings 57 Total assets $336 Total claims $336 Income Statement Net sales $540.0 Operating expense...

  • Mays, Inc. had net income for 2014 of $1,060,000 and earnings per share on common stock...

    Mays, Inc. had net income for 2014 of $1,060,000 and earnings per share on common stock of $5. Included in the net income was $150,000 of bond interest expense related to its long-term debt. The income tax rate for 2014 was 30%. Dividends on preferred stock were $200,000. The payout ratio on common stock was 25%. What were the dividends on common stock in 2014? $215,000 $241,250 $265,000 $322,500

  • of a company during a a firm's gross income, expenses, net income, and the income that...

    of a company during a a firm's gross income, expenses, net income, and the income that is available for distnibution to its preferred and common principles (GAAP) that match the firm's revenues and expenses to the period in and analysts use the information given in the income statement and other financial statements and reports to evaluate the company's financial performance and condition and taxes (EBIT). 3. The company's tax rate remains constant at 40% of its pre-tax income or earnings...

  • Ecker Company reports $1,500,000 of net income and declares $210,000 of cash dividends on its preferred...

    Ecker Company reports $1,500,000 of net income and declares $210,000 of cash dividends on its preferred stock for the year. At year- end, the company had 270,000 weighted average shares of common stock 1. What amount of net income is available to common stockholders? Net income To preferred stockholders Net income available to common stockholders 2. What is the company's basic EPS? Basic Earnings per Share Choose Denominator: Choose Numerator: Basic Earnings per Share Basic earnings per share

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT