Hart Corporation’s net income was $400,000 in 2010 and$160,000 in 2011. What percentage increase in net income mustHart achieve in 2012 to offset the decline in profits in 2011?a. 60%.b. 150%.c. 600%.d. 67%.
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Hart Corporation’s net income was $400,000 in 2010 and
$160,000 in 2011. What percentage increase in net income must
Hart achieve in 2012 to offset the decline in profits in 2011?
a. 60%.
b. 150%.
c. 600%.
d. 67%.
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- The Malia Corporation had sales in 2015 of $65 million, total assets of $42 million, and total liabilities of $20 million. The interest rate on the company's debt is 6 percent, and its tax rate is 30 percent. The operating profit margin was 12 percent. What were the company's operating profits and net income? What was the operating return on assets and return on equity? Assume that interest must be paid on all of the debt.Emerson Equine Supplies earned $72,000 in 2012 and pad dividends of $44,640. The firm had equity of $150,000 at the beginning of the year. At the end of the year, the company had total assets of $195,000. During the year, the company sold no new equity. What is the sustainable growth rate?Kline Corporation had net income of P2 million in 2006. Using the 2006 financial elements as the base data, net income decreased by 70 percent in 2007 and increased by 175 percent in 2008. The respective net income reported by Kline Corporation for 2007 and 2008 are: a. P600,000 and P5,500,000 b. P5,500,000 and P 600,000 c. P1,400,000 and P3,500,000 d. P1,400,000 and P5,500,000
- XYZ Co. wants to know if its profitability performance has increased from 2009 to 2010. The company had net income of $48,000 in 2009 and $50,000 in 2010. Total assets were $480,000 at the end of 2009, and $560,000 at the end of 2010. Calculate return on assets(ROA) for 2009 and 2010and Comment on the results.For 2018, Bargain Basement Stores reported $11,500 of sales and $5,000 of operating costs (including depreciation). The company has $20,500 of total invested capital, the weighted average cost of that capital (the WACC) was 8%, and the federal-plus-state income tax rate was 40%. What was the firm's Economic Value Added (EVA), i.e., how much value did management add to stockholders' wealth during 2017?Salinger Software was founded in 2012. The company lost money each of its first three years, but was able to turn a profit in 2015. Salinger's operating income (EBIT) for its first four years of operations is reported below. Year EBIT 2012 -$50,000,000 2013 -$150,000,000 2014 -$100,000,000 2015 $700,000,000 The company has no debt, so operating income equals earnings before taxes. The corporate tax rate has remained constant at 35%. Assume that the company took full advantage of the carry-back, carry-forward provisions in the Tax Code, and assume that the current provisions were applicable in 2012. How much tax did the company pay in 2015? Select one: a. $147,000,000 b. $165,200,000 c. $158,200,000 d. $140,000,000 e. $107,800,000
- The most recent financial statements for Bello, Inc., are shown here: Income Statement Balance Sheet Sales $ 37,600 Assets $ 135,000 Debt $ 37,000 Costs 26,100 Equity 98,000 Taxable income $ 11,500 Total $ 135,000 Total $ 135,000 Taxes (21%) 2,415 Net income $ 9,085 Assets and costs are proportional to sales; debt and equity are not. A dividend of $2,700 was paid, and the company wishes to maintain a constant payout ratio. Next year’s sales are projected to be $42,112. What external financing is needed?James Furnishings generated $2 million in sales during 2016, and its year-end total assets were $1.5 million. Also, at year-end 2016, current liabilities were $500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $100,000 of accrued liabilities. Looking ahead to 2017, the company estimates that its assets must increase by $0.75 for every $1.00 increase in sales. James' profit margin is 3%, and its retention ratio is 35%. How large of a sales increase can the company achieve without having to raise funds externally? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Do not round intermediate calculations. Round your answer to the nearest cent.the Allen Corporation had sales of $ 69 million, total assets of $ 48 million, and total liabilities of $ 15 million. The interest rate on the company's debt is 6.4 percent, and its tax rate is 35 percent. The operating profit margin is 13 percent. a. Compute the firm's 2016 net operating income and net income. b. Calculate the firm's operating return on assets and return on equity.
- The most recent financial statements for Cardinal, Incorporated, are shown here: Income Statement Balance Sheet Sales $ 23,400 Assets $ 121,000 Debt $ 33,600 Costs 16,300 Equity 87,400 Taxable income $ 7,100 Total $ 121,000 Total $ 121,000 Taxes (25%) 1,775 Net income $ 5,325 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,610 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $28,400. What is the external financing needed? Multiple Choice $17,581 $15,071 $219,330 $21,346 $16,326In 2016, the Allen Corporation had sales of $60 million, total assets of $47 million, and total liabilities of $22 million. The interest rate on the company's debt is 5.6%, and its tax rate is 35%. The operating profit margin is 12%. Compute the firm's 2016 net operating income and net income. Calculate the firm's operating return on assets and return on equity. (Hint: You can assume that interest must be paid on all of the firm's liabilities.)Target industries reported $11,500 of sales and $5,000 of operating costs (including depreciation). The company has $20,500 of total invested capital, the weighted average cost of that capital (the WACC) was 8%, and the federal-plus-state income tax rate was 40%. What was the firm's Economic Value Added (EVA), i.e., how much value did management add to stockholders' wealth during 2017?
