If income tax was 20% for this séctor, which of two companies is maker higher Net Income than the other and by how much higher ?
Q: 1) Suppose your firm earns $9 million in taxable income. What is the firm's tax liability? What is…
A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…
Q: MPI Incorporated has $6 billion in assets, and its tax rate is 35%. Its basic earningpower (BEP)…
A: Asset =6 billion Tax =35% Basic earnings power ratio =11% Return on Asset =6%
Q: AEI Incorporated has $5billion in assets, and its tax rate is 40%. Its basic earning power (BEP)…
A: Assets = $ 5 billion Tax rate (T) = 40% BEP ratio = 11% ROA = 10%
Q: A corporation sells its product to customers for $35 per unit. For the corporation, is that revenue,…
A: Revenues: Revenues are earnings from the operations of a business. The operating activities are the…
Q: If a company had a beta of 1.2 at a D/E level of 0.4, what would its beta be at a D/E level of 0.8?…
A: As per the given information: Beta - 1.2D/E level - 0.4 To determine: Beta at a D/E level of 0.8
Q: Compute the pretax profit (income before income taxes) if the net income is $140,000 and the income…
A: Net income = $140,000 Income tax rate = 0.30 or 30% Pretax profit = ? Pretax profit is the profit…
Q: Corporation Growth has $86,000 in taxable income, and Corporation Income has $8,600,000 in taxable…
A: It is given that:income of Corporation Growth is $86,000 and Corporation is $8,600,000. Tax slabs:…
Q: The net profit margin tells how much profit a company makes for every dollar it generates in…
A: Net income: Income reported at the last line of the income statement is known as net income. It is…
Q: If a corporation earns $370,000, and the payout ratio is 40%, what is the change in retained…
A: Total earnings=$370000Payout ratio=40%
Q: The net profit margin tells how much profit a company makes for every dollar it generates in…
A: In this we have to use common finance terms and theory.
Q: What is the company’s after-tax weighted average cost of capital if National Co. pays 25% taxes?…
A: Weight of long term liabilities (Wl) = 0.30 Weight of preferred stock (Wp) = 0.30 Weight of common…
Q: Suppose Ningbo Steel has sales revenue of $11,000 sales revenue, cost of goods sold off $5000,…
A: Given information : sales revenue = $11,000 cost of goods sold = $5000 operating expenses = $1000…
Q: Thomson Trucking has $16 billion in assets, and its tax rate is 40%.Its basic earning power (BEP)…
A: The time's interest earned ratio is the ratio which shows the ability of the company to meet the…
Q: Assuming an after-tax cost of preferred stock of 10% and a corporate tax rate of 34%, a firm must…
A: The cost of preferred stock is the return that preferred stockholders demand in return for providing…
Q: TnT has $16billion in assets, and its tax rate is 40%. Its BEP ratio is 10% and its ROA is 5%.…
A: TIE refers to times-interest-earned ratio. TIE ratio measures the ability of a firm to pay off its…
Q: A company's capital structure is 40% debt and 60% equity. The interest cost on its debt is 10% and…
A: Weighted average cost of capital can be used to estimate the rate which should be provided to…
Q: Barton Industries has operating income for the year of $3,500,000 and a 36% tax rate. Its total…
A: Given information: Operating income for the year is $3,500,000 Tax rate is 36% Total invested…
Q: IF a corporation earns $240,000 and the payout ratio ( proportion distributed) is 20 percent, what…
A: Given: Total earnings = $240000 Payout ratio =20% = 0.20
Q: A company, subject to a 25% tax rate, desires to earn P600,000 of after-tax income. How much should…
A: Tax rate = 25% Desired earning after tax = P600,000 Earning before tax shall be added to fixed…
Q: CoffeeCarts has a cost of equity of 15%, has a pre-tax cost of debt of 4%, and is financed 70% with…
A: Given details are : Cost of Equity (Ke) = 15% Pre tax cost of debt (Kd) = 4% Weight of Equity = 70%…
Q: A firm had gross profits from sales in the amountof $180,000, operating expenses of $90,000,and…
A: Net Income is defined as the aggregate amount of money that the business earned in the time period,…
Q: corporate tax rate is 40%. Given the following balance sheet, calculate the after-tax…
A: Weighted average cost of capital is the average cost incurred in financing the assets using debt and…
Q: Management would like to achieve a target profit after taxes of $300,000. The company’s income tax…
A: Profit before tax: It can be defined as the operating profits earned by a business before deducting…
Q: enables users to identify the real similarities and differences in economic phenomena because the…
A:
Q: The net profit margin tells how much profit a company makes for every dollar it generates in…
A: given N= net income I = income before tax Tax rate = 20% M(N,R) = NR
Q: Your Corporation’s contribution margin ratio is 29% and it’s fixed monthly expenses are $17,000. If…
A: Break-even analysis is a technique used widely by production management. It helps to determine the…
Q: Calculate to the following for Pharmos considering its tax rate of 25 percent. i. Total Market Value…
A: i. Total Market Value for the Firm: Excel formula:
Q: Byrgenwerth Corp has $55,000,000 of assets, and its tax rate is 28%. Its Basic Earning Power (BEP)…
A: A ratio that provides information about the company regarding the capability of payoff its debt…
Q: AEI Incorporated has $5 billion in assets, and its tax rate is 40%. Its basic earning power (BEP)…
A: The Times Interest earned ratio provides information as company is able to meet the interest cost…
Q: a. Using the information given in the above table, construct income statements for each company and…
A: Given in the question: Domestics Used Best Average Average Selling Price…
Q: Suppose a firm’s tax rate is 25%. 1. What effect would a $9.26 million operating expense have on…
A: With the given values, we can determine the correct option by making certain calculations related to…
Q: Teal Company has a DOL of 120%. If sales were to increase by 5%, what is the expected impact on…
A: Solution: Degree of Operating Leverage (DOL) measures the percentage change in EBIT (Earnings before…
Q: Assume that two companies in the same industry have equal earnings. Why might thesecompanies have…
A: Price earnings ratio is also known as P/E Ratio. Price earnings ratio is the ratio of market price…
Q: If a corporation earns $240,000 and the payout ratio (proportion distributed) is 35 percent, what is…
A: Given : Income = $240,000Payout Ratio = 35% Dividends = Income * Payout Ratio…
Q: IF a corporation earns $240,000 and the payout ratio ( proportion distributed) is 50 percent, what…
A: Given: Total earnings = $2400000 Payout ratio =50% = 0.30
Q: Frontier Corp. has a contribution margin of $648,000 and profit of $162,000. If sales increase 18%,…
A: In order to determine the percentage increase in profit, the degree of operating leverage is…
Q: Duval Manufacturing recently reported the following information:Net income $600,000ROA 8%Interest…
A: Given that;Net income is $600000ROA is 8%Tax rate is 35%Interest expense is $225000
Q: An all -equity firm reports a net profit margin of 12% on sales of $6 million. If the tax rate is…
A:
Q: What is the WACC for a firm with 40% debt, 20% preferred stock, and 40% equity if the respective…
A: Let Wd = Weight of debt = 40% Wp = Weight of preferred stock = 20% We = Weight of equity = 40% Let…
Q: A company wants to earn an income of $60,000 after-taxes. If the tax rate is 32%, what must be the…
A: Formula: Net income after taxes = Pretax income - Tax amount.
Q: Which one of the following statements related to taxes is correct? Select one: a. The marginal tax…
A: Marginal tax rate is the additional tax paid for any additional income. Average tax rate = ( Total…
Q: From the following information of two companies. Company Xy P/E ratio is 15. Company Xz P/E is 3.…
A: Given: P/E ratio of Company Xy = 15 P/E ratio of Company Xz = 3 Post-tax earnings of both companies…
Q: If National Co. treats the AB Division as an investment center for performance measurement purposes,…
A: Before tax ROI = Income before tax/ Average investment in total assets Before tax ROI = 400,000/…
Q: What is the company's absorption costing net operating income (loss) for the quarter? (Round your
A: Solution: - Calculation of unit cost under absorption costing Calculation of unit cost under…
Q: A firm has a profit margin of 15% on sales of $20,000,000. If the firm has debt of $7,500,000, total…
A: Return on assets (ROA) is the return that the company earns from the assets invested in the…
Q: As an Analyst you were tasked to compute for the Weighted Average Cost of Capital of various…
A: Weighted average cost of capital (WACC) is the average cost of capital of the firm from all sources…
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- Please show your solution in good accounting form. Thank you! JINN Corporation started a promotional program. A towel is offered as a premium to customers who send in 10 box tops of facial soap returned and remittance of ₱25. The distribution cost is ₱10 per towel. The entity estimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information: 2020 2021 Facial soap sales, ₱50 per unit ₱ 2,500,000 ₱ 2,875,000 Towel purchases, ₱90 per unit ₱ 337,500 ₱ 360,000 Number of box tops returned 22,500 38,550 Requirements: 1. Compute for the premiums (as an asset) amount for the year ended:A. December 31, 2020B. December 31, 2021 2. Compute for the premiums expense for the year ended:A. December 31, 2020B. December 31, 2021 3. Compute for the premium liability for the year ended:A. December 31, 2020B. December 31, 2021 4. How much net cash did the entity receive (give) with regards to the…ANSWER ALREADY GIVEN. JUST PROVIDE SOLUTION Shoppe Marketing launched a new sales promotional program, or every seals of proof of purchase of their product, customers receive a double-layer reversible umbrella costing P200 each. This umbrella may separately be sold for P300 each. The company estimates that 75% of the seals of proof of purchase reaching the consumer market will be redeemed.Product sales with seals of proof of purchase - 20,000 units for a total of P12,000,000 Premiums distributed to customers - 500 umbrellasHow much of the total transaction price is allocated to the premium? Answer: 220,859 What is the amount of additional sales recognized by Shoppe upon redemption of premiums? Answer: 147,239Consider the following information for a given business. Sale revenue =GHS40,000 VC per unit =GHS20 Activity level =1,000 to break even Required: 1. Determine the TFC 2. Express the contribution as a percentage of sale. 3. The company plans to sale 1,500 unit in the next period. What will be the percentage margin of safety (MoS) 4. What margin should the business employ for planning purposes? 5. What total profit should the business expect in order to achieve it's planned sales?
- Download and fill out the Section 5 Comprehensive Problem Template attached below to complete the problems (ignore question 5-2 as this applies to the "combined accounting and finance" course). Problem 5-1 Redlands Inc. sells one product for $5. The variable cost per item is $3, and the fixed costs for the firm are $40. Required: a. Compute the breakeven point in units. b. Compute the number of units and sales revenue needed to achieve a $20 profit. (Ignore income taxes.) c. Assume that the income tax rate for Redlands is 40%. Compute the number of units and sales revenue needed to achieve an $18 net profit. d. Compute the number of units and sales revenue needed to achieve an 8% profit margin. (Ignore income taxes.) e. Compute the number of units and sales revenue needed to achieve a 12% net profit margin. (Assume a 40% income tax rate.) f. Assume that Redlands currently sells 40 units. Redlands estimates that if it increased sales price to $6 per unit demand would decrease by…Turnover 840 000.00 Trading Income Commission - Connected Garden 420 000,00 Commission - Free Range 82 000,00 Commission - Macadamia Nut Tree 102 000,00 Commission - Pregnant Cow 192 400,00 Total Trading Income 796 400,00 Gross Profit 796 400,00 Operating Expenses Advertising 82 500,00 Bank Fees 13 200,00 Consulting & Accounting 72 000,00 Entertainment 1 330,00 IT Costs - Expenses 108 300,00 Legal expenses 23 200,00 Motor Vehicle Expenses 16 617,77 Office Expenses 1 430,00 Printing & Stationery 5 473,26 Rent 28 500,00 Salaries and Wages 182 000,00 Staff Welfare 2 659,41 Telephone & Internet 8 200,00 Travel - National 4 533,82 Total Operating Expenses 549 944,26 Net Profit 246 455,74 what ca you improve on this income statementplease dont provide answer in image format thank you Assume a retailing company has two departments—Department A and Department B. The company’s most recent contribution format income statement follows: Total Department A Department B Sales $ 800,000 $ 350,000 $ 450,000 Variable expenses 350,000 250,000 100,000 Contribution margin 450,000 100,000 350,000 Fixed expenses 400,000 140,000 260,000 Net operating income (loss) $ 50,000 $ (40,000) $ 90,000 The company says that $60,000 of the fixed expenses being charged to Department A are sunk costs or allocated costs that will continue if the segment is discontinued. However, if Department A is discontinued the sales in Department B will drop by 18%. What is the financial advantage (disadvantage) of discontinuing Department A?
- SCRUMPTIOUS CUPCAKESProfit and loss accountfor the year ended 30 April 20202020£SalesSales 220,000Cost of sales 120,000Gross Profit 100,000ExpensesSalaries 24,000Other Fixed cost 4,800Distribution 3,000Advertising 4,500Rent 13,200AHUtilities 3,600Other Cost 4,00057,100Operating Profit 42,900 SCRUMPTIOUS CUPCAKESBalance Sheetas at 30 April 20202020£Fixed assetsIntangible assets -Tangible assets 35,000Investments -35,000Current assetsStocks 3,000Debtors 10,000Cash at bank and in hand 6,30019,300Written ReportsCreditors: amounts falling duewithin one year (11,300)Net Current Assets 8,000Total assets less currentliabilities 43,000Net Assets 43,000Capital and reservesCalled up share capital 100Profit and loss account 42,900Shareholders' funds 43,000 please calculate the folliwing ratios: Profitability Ratios – Gross Profit Margin, Net Profit Margin and ROCE● Liquidity – Current Test and Acid Test● Gearing● Activity/Performance – Stock Turnover, Debtors’ Collection Period and AssetTurnover…Biblio Files CompanyContribution Margin Income StatementFor the Year Ended December 31, 20Y8 Sales $379,000 Variable costs: Manufacturing expense $151,600 Selling expense 15,160 Administrative expense 60,640 (227,400) Contribution margin $151,600 Fixed costs: Manufacturing expense $76,750 Selling expense 8,000 Administrative expense 10,000 (94,750) Operating income $56,850 Sales Mix Biblio Files Company is making plans for its next fiscal year, and decides to sell two new types of bookshelves, Basic and Deluxe. The company has compiled the following estimates for the new product offerings. Type ofBookshelf Sales Priceper Unit Variable Costper Unit Basic $5.00 $1.75 Deluxe 9.00 8.10 The company is interested in determining how many of each type of bookshelf would have to be sold in order to break even. If we think of the Basic and Deluxe products as components of one overall enterprise product called…Biblio Files CompanyContribution Margin Income StatementFor the Year Ended December 31, 20Y8 Sales $379,000 Variable costs: Manufacturing expense $151,600 Selling expense 15,160 Administrative expense 60,640 (227,400) Contribution margin $151,600 Fixed costs: Manufacturing expense $76,750 Selling expense 8,000 Administrative expense 10,000 (94,750) Operating income $56,850 Sales Mix Biblio Files Company is making plans for its next fiscal year, and decides to sell two new types of bookshelves, Basic and Deluxe. The company has compiled the following estimates for the new product offerings. Type ofBookshelf Sales Priceper Unit Variable Costper Unit Basic $5.00 $1.75 Deluxe 9.00 8.10 The company is interested in determining how many of each type of bookshelf would have to be sold in order to break even. If we think of the Basic and Deluxe products as components of one overall enterprise product called…
- Unearned Sales Revenue Brand Landscaping offers a promotion where a customers lawn will be mowed 20 times if the customer pays $700 in advance. Required: Prepare the journal entry to record (1) the customers' prepayment of S700 and (2) Brands mowing of the lawn one time.Open the file CVP from the website for this book at cengagebrain.com. Enter the formulas where indicated on the worksheet. Enter your name in cell A1. Save the solution as CVP2 and print the worksheet. Also print your formulas. Check figures: Break-even point in sales dollars (cell C35), 1,616,000; Net income (cell C38), 95,000.Instruction: Please answer the following with complete solution and explanation. Thank you! 1. Summer Company offers a set of building blocks to customers who send in three (3) UPC codes from Summer cereal, along with P50.00. The blocks sets cost Summer P110 each to purchase and P60 each to mail to customers. During 20x1, Summer sold 1,000,000 boxes of cereal. The company expects 30% of the UPC codes to be sent in. During 20x1, 120,000 UPC codes are redeemed. Required: 1. What is the cost of estimated claims outstanding? 2. Prepare Summer’s December 31, 20x1 adjusting entry.
