Question

Keep using the same set of information to answer the question below.                               &nbsp

Keep using the same set of information to answer the question below.

                                  Income Statement                                            

       HFT Corp.                                                     

   During the year of 2XX1                  2XX2              

   Sales              $1,200,000          $1,500,000        

   Cost of Sales    $   360,000           $   480,000

   Gross Profit      $   840,000         $1,020,000     

   Payroll Exp.        $   300,000        $   375,000           

   Gen. & Admin.    $ 120,000         $   150,000           

   Other Exp.           $ 240,000         $   300,000         

  (including Taxes)                                                 

   Net Income        $ 180,000          $   195,000  

=====================================

                              Balance Sheet

       On Dec. 31 of       2xx1            2xx2

Total Assets             $700,000   $800,000

Curr. Liabilities         $50,000        $60,000

L/T Liabilities          $150,000     $240,000

Owners' Equity      $500,000     $500,000

1. Determine the investors' ROI in the 2xx2. Your answer should be in percentage (%). Round it to the first decimal.   FYI, if your answer is 30%, provide "30.0" for your answer.

2. During the year of 2XX2, how many dollars of revenues were generated from $1 of the company’s investments into its resources? Follow the same format as required in the previous numerical questions. If your answer is $50.00, provide just "50.00" for your answer.

3.     If the company utilizes its resources in the next year at the same rate it did in the 2xx2, what amount of revenues will be generated in the next year? Its total assets will remain the same in the next year.  Please do not put "$" or "," in your answer. Just the number is required. If your answer is $15,000; then just put 15000 for your answer

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Homework Answers

Answer #1

HFT Corp.

1. ROI (Return on Investment)

Financial year 2XX2

="26.0"

2. During the year if 2XX2

ROI="26.0"

"26.00" of revenues were generated from $1 of the company's investments into its resources.

So, Answer = "26.00"

3. Amount of revenues generated in the next year (2XX3)

ROI="26.0" (Same as 2XX2)

Total Assets =$800000 (same as 2XX2)

Amount of revenues generated in 2XX3

=

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