ABC Stores has a net sales of $180,000 in 2014. The cost of goods sold was...
ABC Stores has a net sales of $180,000 in 2014. The cost of goods sold was $85,000, operating expenses (excluding depreciation) were $35,000, interest expenses were $5,000 and depreciation expense was $20,000. The firm's tax rate is 35 percent.
a. What is the company's earnings before interest and taxes (EBIT) for 2014?
b. What is the net income?
c. Suggest a change in the activities of the firm that would lead to an increase in gross margin of 20%, e.g. "do X that would change item Y in the income statement, which would then increase gross margin by 20%."
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ABC Stores has a net sales of $180,000 in 2014. The cost of
goods sold was...
Please answer the 3 parts. Don't copy and paste. No handwritten please. ABC Stores has a...
Please answer the 3 parts. Don't copy and paste. No handwritten please. ABC Stores has a net sales of $180,000 in 2014. The cost of goods sold was $85,000, operating expenses (excluding depreciation) were $35,000, interest expenses were $5,000 and depreciation expense was $20,000. The firm's tax rate is 35 percent. a. What is the company's earnings before interest and taxes (EBIT) for 2014? b. What is the net income? c. Suggest a change in the activities of the firm...
Income Statement Year Ended 12/31/18 Balance Sheet Sales Cost of Goods Sold Operating Expenses Depreciation Expense100,000...
Income Statement Year Ended 12/31/18 Balance Sheet Sales Cost of Goods Sold Operating Expenses Depreciation Expense100,000 EBIT Interest Expense EBT Taxes Net Income 12/31/2018 12/31/2017 $60,000$45,000 880,000650,000 200,000Less Acc'd Depreciation 450,000350,000 350,000 $395,000 $1.400,000 Current Assets 750,000 Gross Fixed Assets Fixed Assets 430,000 $490,000 50,000 Total Assets 50,000 00,000 Current Liabilities 120,000Long-term Debt $35,000 330,000 5,000 $50,000 270,000 5,000 70,000 $395,000 180,000 Common Stock Retained Earnings Total Liabilities & Equity $490.000 110 $395.000 a) Prepare the 2018 common-sized income statement...
1. ABC Inc. 2018 sales are $1,100,000. Operating costs (excluding depreciation) are 70% of sales. Net...
1. ABC Inc. 2018 sales are $1,100,000. Operating costs (excluding depreciation) are 70% of sales. Net fixed assets are $205,000. Depreciation amounted to 15% of net fixed assets. Interest expenses are $100,000. The tax bill must be calculated using the corporate income tax table in the text, and ABC Inc. paid 8% of net income in dividends. Prepare ABC Inc.’s income statement for 2018: Sales 1,100,000 Operating costs (excluding depreciation) 1,100.000 X .70=770,000 EBITDA 1,100.00-770,00=330,00 Depreciation 205,000 x .15= 30,750...
1. Company ABC has sales of $1,850,000, cost of goods sold of $1,000,000, EBIT of $350,000,...
1. Company ABC has sales of $1,850,000, cost of goods sold of $1,000,000, EBIT of $350,000, interest expense of $65,000, and a tax rate of 27%. If the company paid $51,000 in dividends what is the addition to retained earnings. 2. Nitro Enterprise had beginning net fixed assets of $218,470 and ending net fixed assets of $209,411. During the year, assets with a combined book value of $6,943 were sold. Depreciation for the year was $42,822. What is the amount...
The following is ABC Inc.’s balance sheet (in thousands Also, sales equal $500, cost of goods...
The
following is ABC Inc.’s balance sheet (in thousands
Also, sales equal $500, cost of goods sold equals $360, interest
payments equal $62, taxes equal $56, and net income equals $22. The
beginning retained earnings is $0, the market value of equity is
equal to its book value, and the company pays no dividends.
Calculate Altman’s Z score for ABC, Inc. if ABC has a 50
percent dividend payout ratio and the market value of equity is
equal to its...
Given the following information, calculate ABC Corp’s Net Income: Sales: $260,000 Cost of Goods Sold: $100,000...
Given the following information, calculate ABC Corp’s Net Income: Sales: $260,000 Cost of Goods Sold: $100,000 Salaries and Wages: $20,000 Rent Expense: $65,000 Advertising Expense: $35,000 Using the above information, calculate ABC Corp’s Gross Profit.
A- Consider a firm that reports the reports the following: sales $274,691, cost of goods sold $105,479...
A- Consider a firm that reports the reports the following: sales $274,691, cost of goods sold $105,479 and interest expense of $74,140. The firm has depreciation expense $57,257 and a 15% tax rate. During the last year the firm had an increase in gross fixed assets of $123,964 and a decrease in net operating working capital of $21,169. Calculate the firm's free cash flow. Your answer should be in dollars. So $30 million should be $30,000,000 B- Your firm has the following income statement...
1.)Company ABC has sales of $1,650,000, cost of goods sold of $600,000, EBIT of $450,000, interest...
1.)Company ABC has sales of $1,650,000, cost of goods sold of $600,000, EBIT of $450,000, interest expense of $70,000, and a tax rate of 27%. If the company paid $57,000 in dividends what is the addition to retained earnings. 2.)At the beginning of the year, a firm had current assets of $121,306 and current liabilities of $124,509. At the end of the year, the current assets were $122,418 and the current liabilities were $103,718. What is the change in net...
15. Account Current year Prior year Net sales $219,000 $180,000 Cost of Goods Sold $125,000 $110,000...
15.
Account Current year Prior year Net sales $219,000 $180,000 Cost of Goods Sold $125,000 $110,000 Gross Profit $94,000 $70,000 Income from operations $32,000 $30,000 Interest expense $2,000 $7,000 Net income $25,000 $18,000 Also known: Total assets in the prior year were $325,500, and in the current year are $345,500. What is the prior year's return on sales? 10.0% 14.6% 21.7% 11.4%
During 2014, Raines Umbrella Corp. had sales of $701006. Cost of goods sold, administrative and selling...
During 2014, Raines Umbrella Corp. had sales of $701006. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $583702, $89744, and $116610, respectively. In addition, the company had an interest expense of $41418 and a tax rate of 31 percent. (Ignore any tax loss carryback or carryforward provisions. This means that if the company does not have any taxable income, they do not pay any tax.) What is Raines’s net income for 2014
Income Statement Year Ended 12/31/18 Balance Sheet Sales Cost of Goods Sold Operating Expenses Depreciation Expense100,000 EBIT Interest Expense EBT Taxes Net Income 12/31/2018 12/31/2017 $60,000$45,000 880,000650,000 200,000Less Acc'd Depreciation 450,000350,000 350,000 $395,000 $1.400,000 Current Assets 750,000 Gross Fixed Assets Fixed Assets 430,000 $490,000 50,000 Total Assets 50,000 00,000 Current Liabilities 120,000Long-term Debt $35,000 330,000 5,000 $50,000 270,000 5,000 70,000 $395,000 180,000 Common Stock Retained Earnings Total Liabilities & Equity $490.000 110 $395.000 a) Prepare the 2018 common-sized income statement...
The
following is ABC Inc.’s balance sheet (in thousands
Also, sales equal $500, cost of goods sold equals $360, interest
payments equal $62, taxes equal $56, and net income equals $22. The
beginning retained earnings is $0, the market value of equity is
equal to its book value, and the company pays no dividends.
Calculate Altman’s Z score for ABC, Inc. if ABC has a 50
percent dividend payout ratio and the market value of equity is
equal to its...
15.
Account Current year Prior year Net sales $219,000 $180,000 Cost of Goods Sold $125,000 $110,000 Gross Profit $94,000 $70,000 Income from operations $32,000 $30,000 Interest expense $2,000 $7,000 Net income $25,000 $18,000 Also known: Total assets in the prior year were $325,500, and in the current year are $345,500. What is the prior year's return on sales? 10.0% 14.6% 21.7% 11.4%
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