Question

Bebee & Buckholz Inc. forecasts sales of $650,000 for 2021. Assume that the firm has fIxed...

Bebee & Buckholz Inc. forecasts sales of $650,000 for 2021. Assume that the firm has fIxed costs of $250,000 and variable costs amounting to 35% of sales. In addition, operating expenses are estimated to include fixed costs of $28,000 and a variable portion equal to 7.5% of sales. Interest expenses for the coming year are estimated to be $20,000. Estimate Bebee & Buckholz’s net profit before taxes for 2021.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Please refer to the image below for the solution.

The figures in brackets need to be subtracted. Let me know in the comment section below in case of any doubt.

0 0
Know the answer?
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

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Graduating Tiger, Inc has the following costs: Total variable expenses are $42,000, total fixed expenses are...
Graduating Tiger, Inc has the following costs: Total variable expenses are $42,000, total fixed expenses are $28,000, and sales revenue to breakeven is $35,000. What is current operating income? Group of answer choices $140,000 $7,000 $210,000 $28,000
The most recent financial statements for Retro Machine, Inc., follow. Sales for 2021 are projected to...
The most recent financial statements for Retro Machine, Inc., follow. Sales for 2021 are projected to grow by 25 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. RETRO MACHINE, INC. 2020 Income Statement   Sales $ 748,000   Costs 583,000   Other expenses 19,000   Earnings before interest and taxes $ 146,000   Interest paid 15,000   Taxable income $ 131,000   Taxes...
A proposed new investment has projected sales of $950,000. Variable costs represent 60% of sales, and...
A proposed new investment has projected sales of $950,000. Variable costs represent 60% of sales, and fixed costs are $210,000; depreciation is $102,000. What is the projected operating cash flow assuming a tax rate of 35%.                                          Sales                                                        $687,500                                     Operating Costs                                         343,860                                     Depreciation                                              110,000 What is Net Operating Profit, Taxes at 35%, Net Profit, and Operating Cash Flow
Clay Consulting Firm provides three types of client services in three health-care-related industries. The income statement...
Clay Consulting Firm provides three types of client services in three health-care-related industries. The income statement for July is as follows: Clay Consulting Firm Income Statement For Month of July Sales $ 900,000 Less variable costs (650,000) Contribution margin 250,000 Less fixed expenses Service $ 70,000 Selling and administrative 65,000 (135,000) Net income $ 115,000 The sales, contribution margin ratios, and direct fixed expenses for the three types of services are as follows: Hospitals Physicians Nursing Care Sales $ 350,000...
Merlot, Inc. has fixed costs of $200,000, sales price of $50, and variable cost of $30...
Merlot, Inc. has fixed costs of $200,000, sales price of $50, and variable cost of $30 per unit. How many units must be sold to earn profit of $50,000? Multiple Choice 2,500 12,500 20,000 10,000
Papa Roach Exterminators, Inc., has sales of $729,000, costs of $315,000, depreciation expense of $50,000, interest...
Papa Roach Exterminators, Inc., has sales of $729,000, costs of $315,000, depreciation expense of $50,000, interest expense of $28,000, and a tax rate of 35 percent. If the firm paid out $71,000 in cash dividends. What is the addition to retained earnings?
amby Inc. has sales of $2,000,000 for the first quarter of 2020. In making the sales,...
amby Inc. has sales of $2,000,000 for the first quarter of 2020. In making the sales, the company incurred the following costs and expenses. Variable Fixed Cost of goods sold $760,000 $600,000 Selling expenses 95,000 60,000 Administrative expenses 79,000 66,000 Prepare a CVP income statement for the quarter ended March 31, 2020. HAMBY INC. Income Statement For the Year Ended March 31, 2020For the Quarter Ended March 31, 2020March 31, 2020 Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesGross ProfitNet Income/(Loss)SalesSelling...
The Alexander Company reported the following income statement for 2016: Sales $15,000,000 Less: Operating expenses Wages,...
The Alexander Company reported the following income statement for 2016: Sales $15,000,000 Less: Operating expenses Wages, salaries, benefits $6,000,000 Raw materials 3,000,000 Depreciation 1,500,000 General, selling, and administrative expenses 1,500,000 Total operating expenses 12,000,000 Earnings before interest and taxes (EBIT) $3,000,000 Less: Interest expense 750,000 Earnings before taxes $2,250,000 Less: Income taxes 1,000,000 Earnings after taxes $1,250,000 Less: Preferred dividends 250,000 Earnings available to common stockholders $1,000,000 Earnings per share—250,000 shares outstanding $4.00 Assume that all depreciation and 75 percent...
Oman industries, Inc. reporated sales of $1, 000,000 for the month and incurred variable expenses totaling...
Oman industries, Inc. reporated sales of $1, 000,000 for the month and incurred variable expenses totaling $650,000 and fixed expenses totaling $100,000. 8,000 units were produced and sold during the month. How many units would the company have to sell to achieve a desired profit 0f $500,000? What is the compay's break even in total sales dollars? What is the company's margin fo safety in dollars? What is the company's degree of operating leverage?
 The​ S&H Construction Company expects to have total sales next year totaling $ 15 comma 300...
 The​ S&H Construction Company expects to have total sales next year totaling $ 15 comma 300 comma 000. In​ addition, the firm pays taxes at 35 percent and will owe $ 311 comma 000 in interest expense. Based on last​ year's operations the​ firm's management predicts that its cost of goods sold will be 63 percent of sales and operating expenses will total 32 percent. What is your estimate of the​ firm's net income​ (after taxes) for the coming​ year?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT