(Evaluating profitability) Last year, Stevens Inc. had sales
of $400,000, with a cost of goods sold...
(Evaluating profitability) Last year, Stevens Inc. had sales
of $400,000, with a cost of goods sold of $114,000. The firm's
operating expenses were $127,000, and its increase in retained
earnings was $57,000. There are currently 22,200 common stock
shares outstanding and the firm pays a $1.58 dividend per
share.
a. Assuming the firm's earnings are taxed at 34 percent,
construct the firm's income statement.
b. Compute the firm's operating profit margin.
c. What was the times interest earned?
a. Assuming...
(Break-even point and operating leverage) Rockstar, Inc.
manufactures a complete line of men's and women's casual...
(Break-even point and operating leverage) Rockstar, Inc.
manufactures a complete line of men's and women's casual shoes
for independent merchants. The average selling price of its
finished product is $90 per pair. The variable cost for this same
pair of shoes is $45. Footwear Inc. incurs fixed costs of
$160,000 per year.
a. What is the break-even point in pairs of shoes sold for the
company?
b. What is the dollar sales volume the firm must achieve to
reach the...
(Break-even point and operating leverage) Rockstar, Inc.
manufactures a complete line of men's and women's casual...
(Break-even point and operating leverage) Rockstar, Inc.
manufactures a complete line of men's and women's casual shoes
for independent merchants. The average selling price of its
finished product is $90 per pair. The variable cost for this same
pair of shoes is $55. Footwear Inc. incurs fixed costs of $180
comma 000 per year.
a. What is the break-even point in pairs of shoes sold for the
company?
b. What is the dollar sales volume the firm must achieve to...
GrandPreex Inc. is an all‐stock corporation that manufactures
consumer goods. Sales are expected to be $500...
GrandPreex Inc. is an all‐stock corporation that manufactures
consumer goods. Sales are expected to be $500 million over the
course of this year (realized at the end of this year), and are
projected to grow at 10% annual rate over the following two years.
After that point, sales will stabilize. Management estimates that
cash costs will be 60% of revenue in each year. To achieve these
sales projections, total investment in plant and equipment will
have to be $40 million...
Last year, Oviedo Products Corporation had sales of $1 million.
The firm’s cost of goods sold...
Last year, Oviedo Products Corporation had sales of $1 million.
The firm’s cost of goods sold amounted to 31% of sales and cash
operating expenses were $240,000. Oviedo Products has $420,000 in
equipment that it can expense over 5 years using simplified
straight line depreciation. Therefore, the firm’s annual
depreciation is (420,000/5) = $84,000. In addition, the firm
received $30,000 in dividend income from its investments in common
stocks of other companies. Also, Oviedo Products has a $750,000
loan from...
Sales for J. P. Hulett Inc. during the past year amounted to $
3.8 million. Gross...
Sales for J. P. Hulett Inc. during the past year amounted to $
3.8 million. Gross profits totaled $ 1.07 million, and operating
and depreciation expenses were $ 502 comma 000 and $ 348 comma
000, respectively. Dividend income for the year was $ 11 comma
000, which was paid by a firm in which Hulett owns 85 percent of
the shares. Use the corporate tax rates shown in the popup window,
LOADING..., to Comcute the corporation's tax liability. What...
Sales for J. P. Hulett Inc. during the past year amounted to
$3.6million. Gross profits totaled...
Sales for J. P. Hulett Inc. during the past year amounted to
$3.6million. Gross profits totaled $1.01 million, and operating
and depreciation expenses were $499,000 and $348,000,
respectively. Dividend income for the year was $14,000, which was
paid by a firm in which Hulett owns
85
percent of the shares. Use the corporate tax rates shown:
Taxable Income Marginal Tax Rate
$0−$50,000 15%
$50,001−$75,000 25%
$75,001−$100,000 34%
$100,001−$335,000 39%
$335,001−$10,000,000 34%
$10,000,001−$15,000,000 35%
$15,000,001−$18,333,333 ...
Financial data for Joel de Paris, Inc., for last year follow:
Joel de Paris, Inc. Balance...
Financial data for Joel de Paris, Inc., for last year follow:
Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance
Assets Cash $ 137,000 $ 139,000 Accounts receivable 345,000 489,000
Inventory 572,000 481,000 Plant and equipment, net 816,000 801,000
Investment in Buisson, S.A. 409,000 431,000 Land (undeveloped)
254,000 249,000 Total assets $ 2,533,000 $ 2,590,000 Liabilities
and Stockholders' Equity Accounts payable $ 375,000 $ 338,000
Long-term debt 992,000 992,000 Stockholders' equity 1,166,000
1,260,000 Total liabilities and stockholders' equity $...
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance Sheet
Beginning
Balance
Ending
Balance
Assets
Cash
$
134,000
$
127,000
Accounts receivable
337,000
487,000
Inventory
562,000
487,000
Plant and equipment, net
827,000
799,000
Investment in Buisson, S.A.
403,000
431,000
Land (undeveloped)
246,000
246,000
Total assets
$
2,509,000
$
2,577,000
Liabilities and Stockholders'
Equity
Accounts payable
$
381,000
$
344,000
Long-term debt
1,044,000
1,044,000
Stockholders' equity
1,084,000
1,189,000
Total liabilities and stockholders' equity
$...