Homework Answers
a) Sale price per unit in 20X2 = Sale price per unit in 20x1 (1 + Increase in sales price per unit ) = 13(1 + 10%) = 19 x 1.1 = 14.30
| Sales (11700*14.30) | 167310 |
| COGS | 93600 |
| Gross profit | 73710 |
| Selling and Administrative expenses (6%*167310) | 10038.6 |
| Depreciation | 19400 |
| Operating Profit | 44271.4 |
| Taxes (30%) | 13281.42 |
| After-tax income | 30989.98 |
| After-tax income | 30990 |
b)
= (30990 - 20982) / 20982
= 47.6979
| Gain in After-tax income | 47.70 |
c) Sale price per unit in 20X3 = Sale price per unit in 20x2 (1 - decrease in sales price) = 14.3(1 - 15%) = 14.3 x 0.85 = 12.155 = 12.16 (rounded sales price to two places off decimal)
| Sales (11700*12.16 ) | 142272 |
| COGS (11700*8.5) | 99450 |
| Gross profit | 42822 |
| Selling and Administrative expenses (6%*142272) | 8535.32 |
| Depreciation | 19400 |
| Operating Profit | 14885.68 |
| Taxes (30%) | 4465.704 |
| After-tax income | 104199.976 |
| After-tax income | 10420 |
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The Canton Corporation shows the following income statement. The firm uses FIFO inventory accounting CANTON CORPORATION...
The Canton Corporation shows the following income statement. The firm uses FIFO inventory accounting CANTON CORPORATION...
The Canton Corporation shows the following income statement. The firm uses FIFO inventory accounting CANTON CORPORATION Income Statement for 20X1 S 126,000 (10,500 units at $12.00) 73,500 (10,500 units at $7.00) $ 52,500 7,560 12,700 $ 32,240 9,672 Sales Cost of goods sold Gross profit Selling and administrative expense Depreciation Operating profit Taxes (30%) $ 22,568 Aftertax income a. Assume in 20x2 the same 10,500-unit volume is maintained, but that the sales price increases by 10 percent. Because of FIFO...
The Canton Corporation shows the following income statement. The firm uses FIFO inventory accounting. CANTON CORPORATION...
The Canton Corporation shows the following income statement. The firm uses FIFO inventory accounting. CANTON CORPORATION Income Statement for 20X1 Sales Cost of goods sold Gross profit Selling and administrative expense Depreciation Operating profit Taxes (30%) Aftertax income $ 272,800 (17,600 units at $15.50) 123,200 (17,600 units at $7.00) 149,600 13,640 15,900 120,060 $84,042 a. Assume in 20X2 the same 17,600-unit volume is maintained, but that the sales price increases by 10 percent. Because of FIFO inventory policy, old inventory...
The Canton Corporation shows the following income statement. The firm uses FIFO inventory accounting CANTON CORPORATION...
The Canton Corporation shows the following income statement. The firm uses FIFO inventory accounting CANTON CORPORATION Income Statement for 20X1 $141,600 (11,800 units at $12.00) 82,600 (11,800 units at $7.00) Sales Cost of goods sold Gross profit Selling and administrative expense Depreciation Operating profit Taxes (30%) Aftertax income S 59,000 8,496 12,300 $ 38,204 14 461 $ 26,743 a. Assume in 20X2 the same 11,800-unit volume is maintained, but that the sales price increases by 10 percent. Because of FIFO...
The Canton Corporation shows the following income statement. The firm uses FIFO inventory accounting CANTON CORPORATION...
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all my answers are wrong and i cannot figure out what i'm doing wrong, please help!...
all my answers are wrong and i cannot
figure out what i'm doing wrong, please help!
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Cycle-1 is a fast-growing start-up firm that manufactures bicycles. The following income statement is available for...
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The Canton Corporation shows the following income statement. The firm uses FIFO inventory accounting CANTON CORPORATION Income Statement for 20X1 S 126,000 (10,500 units at $12.00) 73,500 (10,500 units at $7.00) $ 52,500 7,560 12,700 $ 32,240 9,672 Sales Cost of goods sold Gross profit Selling and administrative expense Depreciation Operating profit Taxes (30%) $ 22,568 Aftertax income a. Assume in 20x2 the same 10,500-unit volume is maintained, but that the sales price increases by 10 percent. Because of FIFO...
The Canton Corporation shows the following income statement. The firm uses FIFO inventory accounting. CANTON CORPORATION Income Statement for 20X1 Sales Cost of goods sold Gross profit Selling and administrative expense Depreciation Operating profit Taxes (30%) Aftertax income $ 272,800 (17,600 units at $15.50) 123,200 (17,600 units at $7.00) 149,600 13,640 15,900 120,060 $84,042 a. Assume in 20X2 the same 17,600-unit volume is maintained, but that the sales price increases by 10 percent. Because of FIFO inventory policy, old inventory...
The Canton Corporation shows the following income statement. The firm uses FIFO inventory accounting CANTON CORPORATION Income Statement for 20X1 $141,600 (11,800 units at $12.00) 82,600 (11,800 units at $7.00) Sales Cost of goods sold Gross profit Selling and administrative expense Depreciation Operating profit Taxes (30%) Aftertax income S 59,000 8,496 12,300 $ 38,204 14 461 $ 26,743 a. Assume in 20X2 the same 11,800-unit volume is maintained, but that the sales price increases by 10 percent. Because of FIFO...
The Canton Corporation shows the following income statement. The firm uses FIFO inventory accounting CANTON CORPORATION Income Statement for 20X1 Sales Cost of goods soild Gross profa Seling and administrative expense 170,800 (12,200 units at $14.00) 85,400 (12.200 units at $7.00) 85,400 8,540 1,000 65,860 Operating proft Tales (30%) ASertax inoome 19.758 $ 46,102 a. Assume in 20x2 the same 12.200-un't volume is maintained, but that the sales price increases by 10 peroant Because of FFO inventory policy old inventory...
all my answers are wrong and i cannot
figure out what i'm doing wrong, please help!
CANTON CORPORATION Income Statement for 20x1 Sales $187,200 (15,600 units at $12.00) Cost of goods sold 109,200 (15,600 units at $7.00) Gross profit $ 78,000 Selling and administrative expense 11,232 Depreciation 10,000 Operating profit $ 56, 768 Taxes (30%) 17,030 Aftertax income $ 39,738 a. Assume in 20X2 the same 15,600-unit volume is maintained but that the sales price increases by 10 percent. Because...
Cycle-1 is a fast-growing start-up firm that manufactures bicycles. The following income statement is available for October: $384,00 Sales revenue (688 units @ $64e per unit) Less Manufacturing costs Variable costs Depreciation (fixed) Marketing and administrative costs Fixed costs (cash) Depreciation (fixed) Total costs Operating profits 27,000 25,700 66,300 23, 200 $142,200 $241,800 Sales volume is expected to increase by 10 percent in November, but the sales price is expected to fall 10 percent. Variable manufacturing costs are expected to...
Cycle-1 is a fast-growing start-up firm that manufactures bicycles. The following income statement is available for October: $384,800 22,000 26,500 Sales revenue (520 units @ $740 per unit) Less Manufacturing costs Variable costs Depreciation (fixed) Marketing and administrative costs Fixed costs (cash) Depreciation (fixed) Total costs Operating profits 67,100 24,300 $ 139,900 $244,900 Sales volume is expected to increase by 20 percent in November, but the sales price is expected to fall 10 percent. Variable manufacturing costs are expected to...
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