Suppose you are in charge of a 5K race and you have $275,000 to
distribute based...
Suppose you are in charge of a 5K race and you have $275,000 to
distribute based on order of finish. You decide to pay the top ten
finishers. If your goal is to make a more entertaining race, which
of the two options below is a better method of distributing the
payouts? Why?
INCOME STATEMENT:
2016
2017
Sales
$100,000.00
$120,300.00
Cost of Goods Sold
$60,000.00
$72,180.00
Gross Margin
$40,000.00...
INCOME STATEMENT:
2016
2017
Sales
$100,000.00
$120,300.00
Cost of Goods Sold
$60,000.00
$72,180.00
Gross Margin
$40,000.00
$48,120.00
Depreciation
$16,000.00
$19,200.00
Administrative Costs
$9,000.00
$10,800.00
EBIT
$15,000.00
$18,120.00
Interest
$4,000.00
$4,000.00
Pre-tax income
$11,000.00
$14,120.00
Taxes
$4,400.00
$5,648.00
Net Income
$6,600.00
$8,472.00
Dividends
$0.00
$5,083.20
Addition to Retained Earnings
$6,600.00
$3,388.80
BALANCE SHEET AS OF 12/31/2017:
ASSETS
2016
2017
Cash
$5,000.00
$6,000.00
Inventory
$15,000.00
$18,000.00
Accounts Receivable
$15,000.00
$18,045.00
Current Assets
$35,000.00
$42,045.00
Net PPE
$80,000.00
$92,000.00
Total Assets (TA)
$115,000.00...
Assets
2019
Net Sales
$5,000,000.00
Cash &
equivalents
$20,000.00
Variable Cost (75% of
sales)
$3,750,000.00
Accounts...
Assets
2019
Net Sales
$5,000,000.00
Cash &
equivalents
$20,000.00
Variable Cost (75% of
sales)
$3,750,000.00
Accounts
Receivable
$15,000.00
Inventory
$10,000.00
Gross profit
$1,250,000.00
Total current
assets
$45,000.00
Fixed Cost
$100,000.00
Net Plant and
equipment
$50,000.00
Earnings
before interest, taxes dp and amort.
$1,150,000.00
Total
assets
$95,000.00
Depreciation
$35,000.00
Net OP. Income
(EBIT)
$1,115,000.00
Liabilities
and equity
Interest
$12,000.00
Accounts payable
$5,000.00
Earnings before
taxes
$1,103,000.00
Accruals
$2,000.00
Taxes (40%)
$441,200.00
Notes payable
$10,000.00
Net
Income
$661,800.00
Total current
liabilities
$17,000.00...
Answer the following questions:
Question A
If the sales of a firm increase while all other...
Answer the following questions:
Question A
If the sales of a firm increase while all other components of
ROE remain unchanged including ROE itself, you would expect the
firm's:
A)
ROA to increase
B)
Equity multiplier to increase
C)
Profit margin to increase
D)
Total asset turnover to increase
E)
None of the above.
Question B
In words, what does a firm's PE ratio of $15 mean?
A)
For each $1 of EBIT generated by the firm per share,
shareholders...
Panther
Marine
Instructions:
Using the "June 30, 2017 adjusted trial balance" information AND
income statement complete...
Panther
Marine
Instructions:
Using the "June 30, 2017 adjusted trial balance" information AND
income statement complete the statement of retained earnings. Round
all amounts to the nearest cent. The rest of the formatting is up
to the student. Note that grades are based on organization and
clarity of this financial statement. The only other requirements
are the following items:
a. ONLY use accounts that have
adjusted balances
b. Proper report
title
c. Net increase or decrease in
retained earnings
d....