Sales = $1,350,000 - ($1,350,000*10%)
= $1,215,000
Miller Company
Sales | $1,215,000 |
Variable expenses | $972,000 ($1,215,000*80%) |
Income before interest | $243,000 |
Interest expense | $72,000 |
Net income | $171,000 |
Weaver Company
Sales | $1,215,000 |
Variable expenses | $729,000 ($1,215,000*60%) |
Income before interest | $486,000 |
Interest expense | $342,000 |
Net income | $144,000 |
Company | Net income |
Miller Co. | Decrease by 14% [($198,000-$171,000)/$198,000] |
Weaver Co. | Decrease by 27% [($198,000-$144,000)/$198,000] |
New loo search Required information [The following information applies to the questions displayed below) Shown here...
Required information [The following information applies to the questions displayed below.] Shown here are condensed income statements for two different companies (assume no income taxes). Miller Company Sales $1,300,000 Variable expenses (80%) 1,040,000 Income before interest 260,000 Interest expense (fixed) 76,000 Net income $ 184,000 Weaver Company Sales Variable expenses (60%) Income before interest Interest expense (fixed) Net income $1,300,000 780,000 520,000 336,000 $ 184,000 Required: 1. Compute times interest earned for Miller Company and for Weaver Company.. Times interest...
Chapter 9 Problems i Saved Required information [The following information applies to the questions displayed below.) 1.64 points Shown here are condensed income statements for two different companies (assume no income taxes). Miller Company Sales $1,500,000 Variable expenses (80%) 1,200,000 Income before interest 300,000 Interest expense (fixed) 68,000 Net income $ 232,000 eBook Print Weaver Company Sales Variable expenses (60%) Income before interest Interest expense (fixed) Net income $1,500,000 900,000 600,000 368,000 $ 232,000 Required: 1. Compute times interest earned...
Problem 11-5A Computing and analyzing times interest earned LO A1 The following information applies to the questions displayed below Shown here are condensed income statements for two different companies (both are organized as LLCs and pay no income taxes). Miller Company Sales Variable expenses (808) Income before interest Interest expense (fixed) 10,000 Net income $1,500,000 1,200,000 300,000 $ 90,000 Weaver Company Sales variable expenses (60%) 900,000 Income before interest Interest expense (ixed)510,000 Net income $1,500,000 600,000 $ 90,000 Problem 11-5A...
Shown here are condensed income statements for two different companies (assume no income taxes). Miller CompanySales$1,000,000Variable expenses (80%)800,000Income before interest200,000Interest expense (fixed)60,000Net income$140,000 Weaver CompanySales$1,000,000Variable expenses (60%)600,000Income before interest400,000Interest expense (fixed)260,000Net income$140,000Required:1. Compute times interest earned for Miller Company and for Weaver Company
Problem 11-5A Computing and analyzing times interest earned LO A1 The following information applies to the questions displayed below] Shown here are condensed income statements for two different companies (both are organized as LLCs and pay n income taxes). Sales Variable expenses (88%) 520,603 Interest expense (fixed)70,9ee Variable expenses (68%) Interest expense (fixed)598, 000 Prev 56710 of 10 Next > Problem 11-5A Part 3 3. what happens to each company's net income if sales increase by 30% (Round your answers...
Required information Problem 11-5A Computing and analyzing times interest earned LO A1 [The following information applies to the questions displayed below.] Shown here are condensed income statements for two different companies (assume no income taxes). Miller Company Sales $ 1,200,000 Variable expenses (80%) 960,000 Income before interest 240,000 Interest expense (fixed) 60,000 Net income $ 180,000 Weaver Company Sales $ 1,200,000 Variable expenses (60%) 720,000 Income before interest 480,000 Interest expense (fixed) 300,000 Net income $ 180,000 Problem 11-5A Part...
I need help with the solution and explanation in the whole question Please and Thank you. Connect Homework - Chapter 9 i Saved Help Save & Exit Submit Required information Problem 9-5A Computing and analyzing times interest earned LO A1 The following information applies to the questions displayed below.) Part 2 of 2 points Shown here are condensed income statements for two different companies (assume no income taxes). Miller Company Sales $1,150,000 Variable expenses (804) 920,000 Income before interest 230,000...
Tequired information The following information applies to the questions displayed below] On October 29, Lobo Co. began operations by purchasing razors for resale. The razors have a 90-day warranty. When a razor is returned, the company discards it and mails a new one from Merchandise Inventory to the customer. The company's cost per new razor is $14 and its retail selling price is $80. The company expects warranty costs to equal 9% of dollar sales. The following transactions occurred. Nov....
I need help with the solution and explanation in the whole question Please and Thank you. Connect Homework - Chapter 9 Saved Help Save & Exit Submit 5 Required information Problem 9-5A Computing and analyzing times interest earned LO A1 The following information applies to the questions displayed below] Part 1 of 2 Shown here are condensed income statements for two different companies (assume no income taxes) Miller Company 1 Sales $1,150,000 920,000 230,000 76,000 $ 154,000 points Variable expenses...
Shown here are condensed income statements for two different companies (both are organized as LLCs and pay no income taxes).Ace CompanySales $500,000Variable expenses (80%) 400,000Income before interest 100,000Interest expense (fixed) 30,000Net income $70,000Deuce CompanySales $500,000Variable expenses (60%) 300,000Income before interest 200,000Interest expense (fixed) 130,000Net income $ 70,000(state whether it increases or decreases and by what % for each company)What happens to each company's net income if sales increase by 50%? (Round your answers to the nearest percentage. Omit the "%"...