ZuoTi.Pro
Question

Cute Camel woodcraft Companys income statement reports data for its first year of operation. The firms CEO would like sales to increase by 25% next year. 1, Cute Camel is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (EBIT) 2. The companys operating costs (excluding depreciation and amortization) remain at 70 of net sales, and its depreciation and amortization expenses remain constant from year to year, 3, The companys tax rate remains constant at 40% of its pre-tax income or earnings before taxes (EBT). 4. In Year 2, Cute Camel expects to pay $200,000 and $1,025,100 of preferred and common stock dividends, respectively. Complete the Year 2 income statement data for Cute Camel, then answer the questions that follow. Be sure to round each dollar value to the nearest whole dollar.Cute Camel Woodcraft CompanyIncome Statement for Year Ending December 31 Year 1 Year 2 (Forecasted) Net sales Less: Operating costs, except depreciation and amortization Less: Depreciation and amortization expenses Operating income (or EBIT) Less: Interest expense Pre-tax income (or EBT) Less: Taxes (40%) Earnings after taxes Less: Preferred stock dividends Earnings available to common shareholders Less: Common stock dividends Contribution to retained earnings $20,000,000 14,000,000 800,000 $5,200,000 520,000 4,680,000 1,872,000 $2,808,000 200,000 2,608,000 842,400 $1,765,600 800,000 $2,191,900Given the results of the previous income statement calculations, complete the following statements In Year 2, if Cute Camel has 5,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive If Cute Camel has 400,000 shares of common stock issued and outstanding, then the firms earnings per share (EPS) is expected to change from Cute Camels earnings before interest, taxes, depreciation and amortization (EBITDA) value changed from It is in annual dividends in Year 1 to in Year 2. in Year 1 to ▼ in Year 2. ▼ to say that Cute Camels net inflows and outflows of cash at the end of Years 1 and 2 are equal to the companys annual contribution to retained earnings, $1,765,600 and $2,191,900, respectively. This is because statement involve payments and receipts of cash. of the item reported in the income

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

✔ Recommended Answer
Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

Home nert Page Layout Formulas Data Review View dd-Ins Cut Σ AutoSum ー E ゴWrap Text ta copy. Fill в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 C Paste Conditional Format CeInsert Delete Format Formatting, as Table w styles. ▼ ㆆ ▼ 2 Clear Sort & Find & Format Painter Clipboard Font Alignment Number Editing AP176 AP AQ AR AS AT AU AV AW AX AY AZ 176 YEAR 1 YEAR 2 (FORECASTED) 20000000 25000000 20000000 (1.25) 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 NET SALES OPERATING COST DEPRECIATION & AMORT EXP EBIT INTEREST EBT TAX EAT PREFERRED STOCK DIVIDEND EARNINGS FOR COMMON SHAREHOLDERS COMMON STOCK DIVIDENDS CONTRIBUTION TO RETAINED EARNINGS LESS 14000000 800000 5200000 520000 4680000 1872000 2808000 200000 2608000 842400 1765600 17500000 800000 6700000 1005000 5695000 2278000 3417000 200000 3217000 1025100 2191900 70% LESS LESS LESS LESS LESS | FIFO . CASH BUDGET BV MV ratio VARIANCE BEP, OL FL ratios B-s t loss SALES BUDGET DIFF ANALYSIS overheadfloat erences: EX23 08:02

1 0
Add a comment
Know the answer?
Add Answer to:
Cute Camel woodcraft Company's income statement reports data for its first year of operation. The firm's...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Similar Homework Help Questions

  • complete the year 2 income statement data for cute camel Dute Camel Woodcraft Company's income statement...

    complete the year 2 income statement data for cute camel Dute Camel Woodcraft Company's income statement reports data for its first year of operation. The firm's CEO would like sales to increase by 25% next rear 1. Cute Camel is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (EBIT). 2. The company's operating costs (excluding depreciation and amortization) remain at 65% of net sales, and...

  • Cute Camel Woodcraft company's income statement reports data for its first year of operation. The firms...

    Cute Camel Woodcraft company's income statement reports data for its first year of operation. The firms CEO would like sales to increase by 25% next year. Given the results of the previous income statement calculations, complete the following statement. Question 1 available drop down answers. $30.00, $18.00, $12.00, $24.00 Question 2 available drop down answers, first blank. $16.74, $27.90, $31.00, $15.24. Second Blank. $18.77, $39.75, $20.27, $33.79 Question 3 available drop down answers, first blank. $9,548,000. $8,432,000. $19,200,000. $7,000,000 Second...

  • Consider the following scenario: Cute Camel Woodcraft Company’s income statement reports data for its first year...

    Consider the following scenario: Cute Camel Woodcraft Company’s income statement reports data for its first year of operation. The firm’s CEO would like sales to increase by 25% next year. 1. Cute Camel is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (EBIT). 2. The company’s operating costs (excluding depreciation and amortization) remain at 70.00% of net sales, and its depreciation and amortization expenses remain...

  • Cute Camel Woodcraft Company’s income statement reports data for its first year of operation. The firm’s CEO would like...

    Cute Camel Woodcraft Company’s income statement reports data for its first year of operation. The firm’s CEO would like sales to increase by 25% next year. 1. Cute Camel is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (EBIT). 2. The company’s operating costs (excluding depreciation and amortization) remain at 60% of net sales, and its depreciation and amortization expenses remain constant from year to...

  • The income statement is prepared using the generally accepted accounting principles (GAAP) that match the firm's...

    The income statement is prepared using the generally accepted accounting principles (GAAP) that match the firm's revenues and expenses to the period in which they were incurred, not necessarily when cash was received or paid. Investors and analysts use the information given in the income statement and other financial statements and reports to evaluate the company's financial performance and condition. Consider the following scenario: Cute Camel Woodcraft Company's income statement reports data for its first year of operation. The firm's...

  • 3. Income statement The income statement, also known as the profit and loss (P&L) statement, provides...

    3. Income statement The income statement, also known as the profit and loss (P&L) statement, provides a snapshot of the financial performance of a company during a specified period of time. It reports a firm's gross income, expenses, net income, and the income that is available for distribution to its preferred and common shareholders. The income statement is prepared using the generally accepted accounting principles (GAAP) that match the firm's revenues and expenses to the period in which they were...

  • The income statement, also known as the profit and loss (P&L) statement, provides a snapshot of...

    The income statement, also known as the profit and loss (P&L) statement, provides a snapshot of the financial performance of a company during a specified period of time. It reports a firm's gross income, expenses, net income, and the income that is available for distribution to its preferred and common shareholders. The income statem ent is prepared using the generally accepted accounting principles (GAAP) that match the firm's revenues and expenses to the period in which they were incurred, not...

  • Fuzzy Button Clothing Company's income statement reports data for its first year of operation. The firm's...

    Fuzzy Button Clothing Company's income statement reports data for its first year of operation. The firm's CEO would like sales to increase by 25% next year 1. Fuzzy Button is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (EBIT) 2. The company's operating costs (excluding depreciation and amortization) remain at 75% of net sales, and its depreciation and amortization expenses remain constant from year to...

  • Correctly answer all parts of question #3 Aa Aa E 3. Income statement The income statement,...

    Correctly answer all parts of question #3 Aa Aa E 3. Income statement The income statement, also known as the profit and loss (P&L) statement, provides a snapshot of the financial performance of a company during a specified period of time. It reports a firm's gross income, expenses, net income, and the income that is available for distribution to its preferred and common shareholders. The income statement is prepared using the generally accepted accounting principles (GAAP) that match the firm's...

  • Fuzzy Button Clothing Company's income statement reports data for its first year of operation. The firm's...

    Fuzzy Button Clothing Company's income statement reports data for its first year of operation. The firm's CEO would like sales to increase by 25% next year. 1. Fuzzy Button is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (EBIT) 2. The company's operating costs (excluding depreciation and amortization) remain at 70.00% of net sales, and its depreciation and amortization expenses remain constant from year to...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT