Carla Vista Company is considering two alternatives. Alternative A will have revenues of $148.000 and costs of $104,200 Alternative B will have revenues of $188.000 and costs of $123.800. Compare Alternative A to Alternative B showing incremental revenues. costs, and net income. (Enter negative amounts using either a negative sign preceding the number eg -45 or parentheses es (45)) Alternative Alternative B Net Income Increase (Decrease) Revenues Costs Net Income $ is better than S S
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- Bogart Company is considering two alternatives. Alternative A will have revenues of $160,000 and costs of $100,000. Alternative B will have revenues of $180,000 and costs of $125,000. Compare Alternative A to Alternative B showing incremental revenues, costs, and net income.Sally, the MWE, also has a small business with the following data: sales of P500,000, cost of goods sold of P100,000, operating expenses of P60,000, and non-operating income of P10,000. What would be the income tax due under the graduated rates, and under the 8% income tax rate option? a. P23,600; P54,564 b. P18,000; P42,350 c. P20,000; P40,800 d. None of the above.The most recent financial statements for WFY, Co., are shown here: INCOME STATEMENT SALES 35250,00 COSTS 24675,00 TAXABLE INCOME 10575,00 TAXES(35%) 3701,25 NET INCOME 4582,20 BALANCE SHEET CURRENT ASSEST 10400 DEBT 17500 FIXED ASSEST 28750 EQUITY 21650 TOTAL 39159 TOTAL 39150 Assets and costs are proportional to sales. Debt and equity are not. The company pays a payout ratio of 60%, and the company wishes to maintain a constant payout ratio. The forecast for next year’s sales is €37500. a) What is the external financing needed? b) Calculate the internal growth rate. How do you interpret it?
- NUBD Inc. ignored the effect of income taxes in its calculation of the sales volume needed to achieve a target profit of P1,000,000. If the company considers the impact of income taxes in its calculation, which of the following statements would be true? aTotal fixed cost will increase. bContribution margin per unit will decrease. cSales volume to reach an after-tax profit will increase. dSales price per unit will decrease.Byron Books Inc. recently reported $13 million of net income. ItsEBIT was $20.8 million, and its tax rate was 35%. What was its interest expense? (Hint:Write out the headings for an income statement, and fill in the known values. Then divide$13 million of net income by (1 2T) 5 0.65 to find the pretax income. The differencebetween EBIT and taxable income must be interest expense. Use this same procedure tocomplete similar problems.)Tisdale Incorporated reports the following amount in its December 31, 2021, income statement. Sales revenue Nonoperating revenue Selling expenses General expenses $300,000 110,000 60,000 50,000 Income tax expense Cost of goods sold Administrative expenses $ 30,000 190,000 40,000 Required:1. Prepare a multiple-step income statement.2. Explain how analyzing the multiple levels of profitability can help in understanding the future profit-generating potential of Tisdale Incorporated.
- Prepare an income statement if your company’s gross sales isP300,000, with operating expenses of P100,000, and administrativecosts of P30,000. What is its gross income?The accountant at Paige Company has determined that income before income taxes amounted to $8,400 using the FIFO costing assumption. If the income tax rate is 20% and the amount of income taxes paid would be $380 greater if the LIFO assumption were used, what would be the amount of income before taxes under the LIFO assumption?Denver, Incorporated, has sales of $27 million, total assets of $24.9 million, and total debt of $5.7 million. Assume the profit margin is 9 percent. a. What is the company's net income? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) b. What is the company's ROA? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the company's ROE? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
- Molteni Motors Inc. recently reported $6 million of net income. Its EBIT was$13 million, and its tax rate was 40%. What was its interest expense? (Hint:Write out the headings for an income statement and then fill in the knownvalues. Then divide $6 million net income by 1 - T = 0.6 to find the pretax income. The difference between EBIT and taxable income must be theinterest expense. Use this procedure to work some of the other problems.)Solvency and Profitability Trend Analysis (Picture is attached and this is the only one I got wrong, what did I do wrong?) Addai Company has provided the following comparative information: 20Y8 20Y7 20Y6 20Y5 20Y4 Net income $273,406 $367,976 $631,176 $884,000 $800,000 Interest expense 616,047 572,003 528,165 495,000 440,000 Income tax expense 31,749 53,560 106,720 160,000 200,000 Total assets (ending balance) 4,417,178 4,124,350 3,732,443 3,338,500 2,750,000 Total stockholders’ equity (ending balance) 3,706,557 3,433,152 3,065,176 2,434,000 1,550,000 Average total assets 4,270,764 3,928,396 3,535,472 3,044,250 2,475,000 Average total stockholders' equity 3,569,855 3,249,164 2,749,588 1,992,000 1,150,000 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following…Byron Books Inc. recently reported $13 million of net income. Its EBIT was $22.1 million, and its tax rate was 35%. What was its interest expense? (Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $13 million of net income by (1 - T) = 0.65 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.) Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary. Do not round intermediate calculations.