Hello,
(Figures in $) | Calculations | ||
59 | Year 1 Gross Margin | ||
Sales | 1,00,00,000 | a | |
Less : Cost of goods sold | 50,00,000 | b | |
Gross Margin | 50,00,000 | c=a-b | |
60 | Year 1 Operating Income | ||
Gross Margin | 50,00,000 | c | |
Less : Core operating expenses | 33,00,000 | d | |
Operating income | 17,00,000 | e = c-d | |
61 | Year 1 Depreciation expenses | ||
Base | 30,00,000 | f1 | |
Useful life | 5 years | g1 | |
Depreciation (SL method) | 6,00,000 | f = f1/g1 | |
62 | Year 1 Net income | ||
Operating income | 17,00,000 | e | |
Less : Depreciation | 6,00,000 | f | |
Less : Interest | 2,50,000 | g | |
Less : Tax expenses | 2,50,000 | h | |
Net income | 6,00,000 | i | |
63 | Year 2 Sales Revenue | ||
Compounded annual growth rate | 4.5% | j | |
Year 1 sales | 1,00,00,000 | a | |
Year 2 Sales Revenue | 1,04,50,000 | k = a* (1+j) | |
64 | Year 2 Operating Income | ||
Core operating expenses Year 1 | 33,00,000 | d | |
Compounded annual growth rate | 4.5% | l | |
Core operating expenses Year 2 | 34,48,500 | m = d * (1+l) | |
Sales revenue Year 2 | 1,04,50,000 | k | |
Cost of goods sold Year 2 | 50,00,000 | n | |
Core operating expenses Year 2 | 34,48,500 | m | |
Year 2 Operating Income | 20,01,500 | o = k-n-m | |
65 | Year 2 interest expenses | 2,50,000 | p |
66 | Year 2 Taxes | 2,50,000 | q |
67 | Year 2 Net Income | ||
Year 2 Operating Income | 20,01,500 | o | |
Less : interest expenses, taxes, depreciation | 9,01,500 | r = p+q+f | |
Year 2 Net Income | 11,00,000 | s = o-r | |
68 | Year 3 sales revenue | ||
Compounded annual growth rate | 4.5% | j | |
Year 2 sales | 1,04,50,000 | k | |
Year 3 Sales Revenue | 1,09,20,250 | t = k* (1+j) | |
69 | Year 3 operating income | ||
Core operating expenses Year 2 | 34,48,500 | m | |
Compounded annual growth rate | 4.5% | l | |
Core operating expenses Year 3 | 36,03,683 | u = m * (1+l) | |
Sales revenue Year 3 | 1,09,20,250 | t | |
Cost of goods sold Year 3 | 50,00,000 | n | |
Core operating expenses Year 3 | 36,03,683 | u | |
Year 3 operating income | 23,16,568 | v = t-n-u | |
70 | Year 3 interest expenses | 2,50,000 | p |
71 | Year 3 Taxes | 2,50,000 | q |
72 | Year 3 Net income | ||
Year 3 Operating Income | 23,16,568 | v | |
Less : interest expenses, taxes, depreciation | 11,00,000 | r3 = p+q+f | |
Year 3 Net Income | 12,16,568 | s3 = v-r3 | |
73 | EPS for Year 1 | ||
Net income Year 1 | 6,00,000 | i | |
Number of common stock shares | 1,00,00,000 | w | |
EPS for Year 1 | 0.06 | x = i/w | |
74 | EPS for Year 2 | ||
Net income Year 2 | 11,00,000 | s | |
Number of common stock shares | 1,00,00,000 | w | |
EPS for Year 2 | 0.11 | y = s/w | |
75 | EPS for Year 3 | ||
Net income Year 3 | 12,16,568 | s3 | |
Number of common stock shares | 1,00,00,000 | w | |
EPS for Year 3 | 0.12 | z = s3/w | |
76 | PE ratio Year 1 | ||
Stock Price Year 1 | 6 | sp1 | |
EPS for Year 1 | 0.06 | x | |
PE ratio Year 1 | 100 | sp1/x | |
77 | PE ratio Year 2 | ||
Stock Price Year 2 | 7 | sp2 | |
EPS for Year 2 | 0.11 | y | |
PE ratio Year 2 | 64 | sp2/y | |
78 | PE ratio Year 3 | ||
Stock Price Year 3 | 10 | sp3 | |
EPS for Year 3 | 0.12 | z | |
PE ratio Year 3 | 82 | sp3/z |
Hope this helps. Thanks and have a great day!
Page 5 FOR QUESTIONS 59-78: HERE ARE THE ASSUMPTIONS AND RELEVANT DATA. PLEASE ATTENTION TO THEM;...
Page 5 EOR QUESTIONS 59.78: HERE ARE THE ASSUMATIONS AND RELEVANT DATA, PLEASE PAY CAREFUL ATTENTION TO THEM: ONE MISSED ASSUMPTION MAY AFFECT MANY ANSWERS YEAR 1: SALES REVENUE: $10,000,000 • COST OF GOODS SOLD: $5,000,000 NOTE: COST OF GOODS SOLD STAYS CONSTANT IS THE SAME AMO SOLD STAYS CONSTANT IS THE SAME AMOUNT FOR YEARS 1. 2. AND 3 • CORE OPERATING EXPENSES: $3.3 MILLION LIDO.NOTLINCLUDE THE FOLLOWING EXPENSES IN THE OPERATING EXPENSES, BULINSTEAD INCLUDE THE FOLLOWING THREE EXPENSES...
The following is a partial trial balance for General Lighting Corporation as of December 31, 2021: Debits Credits 2,600,000 85,000 Account Title Sales revenue Interest revenue Loss on sale of investments Cost of goods sold Loss on inventory write-down (obsolescence) Selling expense General and administrative expense Interest expense 25,000 1,240,000 250,000 350,000 175,000 84,000 There were 340,000 shares of common stock outstanding throughout 2021. Income tax expense has not yet been recorded. TH income tax rate is 25%. Required: 1....
I have two questions that I am requesting help with and an explanation for the correct answer. Thank you #2 #4 On December 31, 2021, the end of the fiscal year, Revolutionary Industries completed the sale of its robotics business for $12.6 million. The robotics business segment qualifies as a component of the entity according to GAAP. The book value of the assets of the segment was $8.8 million. The income from operations of the segment during 2021 was $5.8...
Please answer both The following is a partial trial balance for General Lighting Corporation as of December 31, 2021: Debits Credits 2,650,000 86,000 Account Title Sales revenue Interest revenue Loss on sale of investments Cost of goods sold Loss on inventory write-down (obsolescence) Selling expense General and administrative expense Interest expense points 25,500 1,250,000 260,000 360,000 180,000 85,000 Skipped eBook There were 300,000 shares of common stock outstanding throughout 2021. Income tax expense has not yet been recorded. The income...
Kelsy Company (Homework) Following are financial data for Kelsy Company for the year ended December 31, 2020. Revenues and expenses: Continuing operations: Net sales revenue $1,950,000 Cost of goods sold. 510,000 Selling & administrative expenses 200,000 Interest income 10,000 Interest expense 50,000 Discontinued operations-Division X (Note A): Net sales revenue. 800,000 Cost of goods sold 700,000 Selling & administrative expenses 500,000 Other: Discontinued division phase-out loss (Note A). 250,000 Litigation loss (Note B). 100,000 Dividends declared (Note C). 220,000 Note...
Problem 4-6 (Algo) Income statement presentation; Discontinued operations; EPS (LO4-1, 4-3, 4-4, 4-5) Rembrandt Paint Company had the following income statement items for the year ended December 31, 2021 ($ in thousands): Sales revenue $ 28,000 Interest 300 revenue Interest 500 expense Cost of goods sold Selling and administrative expense Restructuring costs $ 15,500 3,500 1,800 In addition, during the year the company completed the disposal of its plastics business and incurred a loss from operations of $2.6 million and...
Plano Co. 12/31/2018 Partial Trial Balance Data Debits Credits Sales revenue 715,000 Interest revenue 61,000 Gain on sale of investments 111,000 Cost of goods sold 510,000 Selling expenses 149,000 Interest expense 31,000 General and administrative expenses 102,000 Plano had 50,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 30%. Required: Prepare a multiple-step income statement with earnings per share disclosure. (Amounts to be deducted should be indicated with...
If you can please provide an explanation, I'll make sure to upvote, thanks! Sutton Inc.'s underlying economic reality is a perfectly stable business that began in Year 0 (see excel Drill 5 Accruals.xlsx D). Every year, they generate $500,000 in sales, half of which are in cash, the other half are credit sales that are collected the following year. All other items of revenue and expense (including tax expense) are identical each year (see Years 1 and 2 in excel)....
Problem 4-6 (Static) Income statement presentation; Discontinued operations; EPS (LO4-1, 4-3, 4-4, 4-5) Rembrandt Paint Company had the following income statement items for the year ended December 31, 2021 (S in thousands): Sales revenue Interest revenue Interest expense $ 18,000 100 Cost of goods sold Selling and administrative expense Restructuring costs $ 10,500 2,500 In addition, during the year the company completed the disposal of its plastics business and incurred a loss from operations of $1.6 million and a gain...
Rembrandt Paint Company had the following income statement items for the year ended December 31, 2021 ($ in thousands): Problem 4-6 (Algo) Income statement presentation; Discontinued operations; EPS (L04-1, 4-3, 4-4, 4-5) Rembrandt Paint Company had the following income statement items for the year ended December 31, 2021 ($ in thousands): Sales revenue Interest revenue Interest expense $ 32,000 380 580 Cost of goods sold Selling and administrative expense Restructuring costs $ 17,500 3,900 2,200 In addition, during the year...