Question

In the year just? ended, Callaway Lighting had sales of $5,000,000 and incurred cost of goods...

In the year just? ended, Callaway Lighting had sales of $5,000,000 and incurred cost of goods sold equal to $ 4,500,000.

The? firm's operating expenses were $ 130,000 and its increase in retained earnings was $ 40,000 for the year. There are currently 100,000 common stock shares outstanding and the firm pays a $ 1.485 dividend per share. The firm has $ 1,000,000 in? interest-bearing debt on which it pays 8.0 percent interest.

a.??Assuming the? firm's earnings are taxed at 35% construct the? firm's income statement.

b.??Calculate the? firm's operating profit margin and net profit margin.

c.??Compute the times interest earned ratio. What does this ratio tell you about? Callaway's ability to pay its interest? expense?

d.??What is the? firm's return on? equity?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
(Profitability and capital structure​ analysis)  In the year just​ ended, Callaway Lighting had sales of $5,170,000...
(Profitability and capital structure​ analysis)  In the year just​ ended, Callaway Lighting had sales of $5,170,000 and incurred cost of goods sold equal to $4,510,000. The​ firm's operating expenses were $133,000 and its increase in retained earnings was $40,000 for the year. There are currently 99,000 common stock shares outstanding and the firm pays a $2.482 dividend per share. The firm has $1,040,000 in​ interest-bearing debt on which it pays 8.4 percent interest. a.  Assuming the​ firm's earnings are taxed...
(Evaluating profitability​) Last​ year, Stevens Inc. had sales of $396,000​, with a cost of goods sold...
(Evaluating profitability​) Last​ year, Stevens Inc. had sales of $396,000​, with a cost of goods sold of 115,000. The​ firm's operating expenses were $126,000​, and its increase in retained earnings was $50,000. There are currently 21,000 common stock shares outstanding and the firm pays a$1.56 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 the​...
​(Evaluating profitability​) Last​ year, Stevens Inc. had sales of ​$399,000​, with a cost of goods sold...
​(Evaluating profitability​) Last​ year, Stevens Inc. had sales of ​$399,000​, with a cost of goods sold of $119,000. The​ firm's operating expenses were $125,000​, and its increase in retained earnings was ​$58,000. There are currently 22,100 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?
(Evaluating profitability​) Last​ year, Stevens Inc. had sales of ​$403,000​, with a cost of goods sold...
(Evaluating profitability​) Last​ year, Stevens Inc. had sales of ​$403,000​, with a cost of goods sold of ​$110,000. The firm's operating expenses were $ 135,000​, and its increase in retained earnings was ​$56,000. There are currently 22,800 common stock shares outstanding and the firm pays a ​$1.62 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?
(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...
​(Related to Checkpoint​ 4.3) ​ (Profitability analysis)  Last year the P. M. Postem Corporation had sales...
​(Related to Checkpoint​ 4.3) ​ (Profitability analysis)  Last year the P. M. Postem Corporation had sales of $443,000​, with a cost of goods sold of $114,000. The​ firm's operating expenses were $126,000​, and its increase in retained earnings was $97,630. There are currently 22,000 shares of common stock​ outstanding, the firm pays a $1.56 dividend per​ share, and the firm has no​ interest-bearing debt .a.  Assuming the​ firm's earnings are taxed at 35 ​percent, construct the​ firm's income statement. b.  ...
Last year, Stevens, Inc. had sales of $420,000 with a cost of goods sold of $150,000....
Last year, Stevens, Inc. had sales of $420,000 with a cost of goods sold of $150,000. The firm's operating expenses were $150,000, and its increase in retained earnings was $63,000. There are currently 24,000 common stock shares outstanding and the firm pays a $1.50 dividend per share. Assume the firm's earnings are taxes at 21%. What is the firm's times interest earned ratio?
Last year, Stevens, Inc. had sales of $420,000 with a cost of goods sold of $150,000....
Last year, Stevens, Inc. had sales of $420,000 with a cost of goods sold of $150,000. The firm's operating expenses were $150,000, and its increase in retained earnings was $63,000. There are currently 24,000 common stock shares outstanding and the firm pays a $1.50 dividend per share. Assume the firm's earnings are taxes at 21%. What is the firm's times interest earned ratio?
Income Statement Balance Sheet Sales $20,000,000 Assets: Cost of Goods Sold 8,000,000 Cash $5,000,000 12,000,000 Marketable...
Income Statement Balance Sheet Sales $20,000,000 Assets: Cost of Goods Sold 8,000,000 Cash $5,000,000 12,000,000 Marketable Securities 12,500,000 Selling and Administrative 1,600,000 Accounts Receivable, net 2,500,000 Depreciation 3,000,000 Inventory 30,000,000 EBIT 7,400,000 Prepaid Expenses 5,000,000 Interest 2,000,000 Plant & Equipment 30,000,000 5,400,000 Taxes (40%) 2,160,000 Total Assets 85,000,000 3,240,000 Common Stock Div. 600,000 Liabilities and Equity: $2,640,000 Accounts Payable $20,000,000 Notes Payable 5,000,000 Shares outstanding of common stock = 1,000,000 Accrued Expenses 5,000,000 Market price of common stock = $18...
QUESTION 10 Ajax Corp's sales last year were $720,000, its operating costs were $364,500, and its...
QUESTION 10 Ajax Corp's sales last year were $720,000, its operating costs were $364,500, and its interest charges were $50,500. What was the firm's times-interest-earned (TIE) ratio? QUESTION 3 If a firm's profit margin is 15%, total assets turnover is 1.57, and its debt-to-assets ratio (i.e. liabilities-to-assets) is 0.4, what is the firm's ROE?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT