As Plastic Products is operating at just 87 percent capacity, although it is earning a substantial profit, its increase in sales will least lead to the firm's __________ to increase.
Accounts recievable
Cost of Goods sold
Accounts payable
Fixed Assets
Inventory
As the sales increase, the cost of goods sold associated with the sales also increases.
The answer is Cost of goods sold.
As Plastic Products is operating at just 87 percent capacity, although it is earning a substantial...
A firm's current level of operation (for example, at 90% of its operating capacity) can be used to project the firm's account value of __________________ when preparing pro forma financial statements. A sales B cost of goods sold C accounts receivable D fixed assets E long-term debt
Calculate the operating cash flow for 2016. I just want to make sure it is correct. Thank you. Sales 403,456 Cost of Goods Sold 201,943 Gross Profit 201,513 Selling & Administrative Expenses 43,130 EBIT 158,383 Interest expense 13,130 Depreciation 56,876 EBT 88,377 Taxes 30,932 Net Income 57,445 Dividends 28,723 Additions to Retained Earnings 28,723 Current Assets Current Liabilities Cash 30,629 Accounts Payable 52,910 Inventory 45,785 Notes Payable 24,308 Accounts Receivable 21,524 Total Current Liabilities 77,218 Total Current Assets 97,938 Long-term...
A fire recently destroyed a substantial portion of Sheridan Company's production capacity. It will be many months before capacity can be restored. During this period, demand for the firm's products will exceed the company's ability to produce them. Per-unit data on the firm's three major products is summarized as follows: Product Selling price Variable costs Fixed costs Operating profit A $83 40 15 $28 B с $92 $74 23 27 20 11 $49 $36 Fixed costs have been allocated to...
Wanye is currently operating at 88 percent of capacity. All costs and net working capital vary directly with sales. What is the amount of the pro forma net fixed assets for next year if sales are projected to increase by 13 percent and the firm currently has $33,600 of net fixed assets?
EXCESS CAPACITY
a.
Assume that the company was operating at full capacity in 2016 with
regard to all items except fixed assets; fixed assets in 2016 were
being utilized to only 75% of capacity. By what percentage could
2017 sales increase over 2016 sales without the need for an
increase in fixed assets? Round your answer to two decimal
places.
b. Now suppose 2017 sales increase by 30% over 2016 sales.
Assume that Krogh cannot sell any fixed assets. All...
The firm currently has $298,900 in sales and is operating at 86 percent of the firm's capacity. The dividend payout ratio is 40 percent and cost of goods sold is $211,300. What is the full capacity level of sales? O a. $245,697 O b. $208,534 $347.558 d. $211,300 e $254,500
Waterloo Storage Products makes a four-drawer plastic storage cabinet on casters meant for use in garages and workshops. Each cabinet sells for $48. Data for last year's operations follow: Units in beginning inventory Units produced Units sold Units in ending inventory 23,400 20,700 2,700 $ Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative vo ū= Total variable cost per unit Fixed costs: Fixed manufacturing overhead $ 79,000 Fixed selling and 114,000 administrative Total...
The financial planning process is least apt to Multiple Choice Involve Internal negotlations among divisions quantify senior manager's goals consider the development of future technologies quantify senior manager's goals consider the development of future technologies reconclle a company's activitles across diviSions consider factors that currently provide a negative rate of growth A firm's current level of operation (for example, at 90% of its operating capacity) can be used to project the firm's account value of when preparing pro forma financial...
Question Completion Status: Income Statement For the Year Sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income $42,700 29,250 3,750 $ 9,700 1,360 $ 8,340 Taxes 2,840 Net income $ 5,500 Dividends $1,925 Balance Sheet End-of-Year Cash Accounts receivable Inventory Total current assets $ 1,320 3,780 10,200 $15,300 33,600 $48,900 Net fixed assets Total assets $ 3,650 18,100 Accounts payable Long-term debt Common stock ($1 par value) Retained earnings 15,000 12.150 End-of-Year Cash $...
A rectly destroyed a substantial portion of Blossom Company's production capacity. It will be many months before capacity can be restored. During this period, demand for the firm's products will exced the company's ability to produce them. Par unit data on the firm's the major products is sammarized as follows: Product A B C Selling price $B4 05 $75 Variable 27 27 Fixed costs 15 1B 10 Operating profit $21 $50 --- $38 Fixed costs have been allocated to the...