If sales increase from P80.000 per year to P140,000 per year, and if the operating leverage factor is 5, then net operating income should increase by:
Q: Bollozos Afterlife Corporation's Division A manufactures and sells product Brand X, which is used in…
A: Lets understand the basics. Transfer price is a price which is determine for transferring goods from…
Q: Illustration 2. Business Combination Achieved in Stages and without transfer of consideration On…
A: In most circumstances, the consideration transferred is valued at its fair market value. The…
Q: Larry Mattingly turned 20 years old today His grandfather had establshed a trust fund that will pay…
A: Present value or PV is the discounted worth of a future cash flow taking into consideration the time…
Q: The following data were gathered to use in reconciling the bank account of Crystal Company: Balance…
A: Bank reconciliation consists of reconciling balance as per bank books to adjusted bank balance and…
Q: Lia ITZY has determined that the annual demand for number 6 screws is 100,000 screws. Lia, who works…
A: Solution:- i)Calculation of average inventory as follows under:- Average inventory = EOQ / 2
Q: Sundae Inc. sells land to Parfait Co. for 9k. The land had cost S 10k 5 years ago. Provide the…
A: A journal entry is used to record any commercial transaction in the accounting records of a…
Q: guid iabil odger ingle orris
A: Given:
Q: Nivea Company is planning to introduce a new product. Market research information suggests that the…
A: Introduction: A product is a tangible object that is placed on the market for purchase, attention,…
Q: 9. Which of the following will not appear in a cash budget in the same month? A. Cash sales B.…
A: Cash budget is the estimation of cash receipts and cash payments for the particular period. It helps…
Q: Explain how a defined contribution pension plan and how a defined benefit plan work. Which pension…
A: A defined contribution plan is a type of corporate retirement plan in which an employee contributes…
Q: James has a mortgage of $86,500 at 8% for 15 years. The property taxes are $3,900 per year, and the…
A: Solution:- Given, James has a mortgage = $86,500 at 8% for 15 years. The property taxes = $3,900 per…
Q: oe and Sunny intend to enter into a business venture together and decided that an S corporation…
A: Basis in property: The amount of investment made by an individual in acquiring a property is called…
Q: A tool is purehased for $500,000. The expected life is 25 years. The salvage value is $100,000. what…
A: Depreciation represents the reduction in the value of the asset over a useful life of the asset. It…
Q: ______ P120,000 Expense 35,000 35,000 _____________ Profit/(Loss) P _________…
A: Revenue is the total value of all goods and services sold by a company within a given time period.…
Q: Ebanks, Brown, and Thomas are partners. They carry on a business jointly as EBT surveyors and share
A: Answer: Letter of Objection to the IRD on behalf of Ebanks. To Inland Revenue Division…
Q: Salinger Software was founded in 2012. The company lost money each of its first three years, but was…
A: Tax is a liability calculated on the income earned by an individual or company and paid to the…
Q: The Converting Department of Worley Company had 920 units in work in process at the beginning of the…
A: Formulas: Number of Equivalent Units of Production = Inventory in process, beginning + Units Started…
Q: A movie production studio incurred the following costs related to its current movie: Purchased…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: On March 31, the Federal Unemployment Tax Payable account in the general ledger of The Argosy…
A: The journal entry is the primary reporting of the transactions of a business in the books of an…
Q: Exercise 4 Fagan Company uses a flexible budget for manufacturing overhead based on machine hours.…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: What is the importance of social and environmental issues for a company like Mc Donalds?
A: social and environment issues are the one of the most important issues that affect the company…
Q: (c) Suppose you had a choice between owning a US government treasury bond paying 2% coupon and a…
A: Here discuss about the advantages of while using the US government Treasury Bond compare with the…
Q: 94: The following comparable balance sheet for Ibrahim Stores for the year ended Dec.31, 2012:…
A: Introduction An income statement is the financial statement that reveals income and expenditure of…
Q: 5. S1: Consolidated statements worksheet elimination of intercompany sales of inventory does affect…
A: Consolidated Net Income- Consolidated net income is defined as the total income of the parent entity…
Q: nterest in S Com
A: Introduction Minority interest means ownership or interest of less then 50% of an enterprise. The…
Q: Tristen Company purchased a five-story office building on January 1, 2019, at a cost of $6,400,000.…
A: Depreciation means the amount fixed assets written off due to normal wear and tear , normal usage ,…
Q: How much money will you have available to you after five years if you put aside $100.00 a month in…
A: Compound Interest- Compound interest is interest that is added to the principal amount each year,…
Q: In rendering cash count the auditor observed that one of the items being presented by the custodian…
A: Audit refers to the examination as well as investigation of the accounting records and the financial…
Q: Winneconne Company is considering replacing a machine with a book value of P400,000, a remaining…
A: Introduction:- The following formula used to calculate net investment required to replace the…
Q: Krueger Corporation manufactures a single product whose selling price is $134 per unit and whose…
A: Formula: Total contribution margin = Sales revenue - variable cost
Q: Which of the following is most likely to be an intangible asset with an indefinite life? Multiple…
A: Assets are the rights and resources being held by the business for the purpose of use or for the…
Q: Basic Accounting Equation) Fill up the missing amounts for each case Case 1 Case 2 Case 3…
A: The basic accounting equation based on which the financial statements of a business can be prepared…
Q: niums and discounts on a straight line basis. Sneezy Ltd. has a January 31 year end. uired: 1.…
A: Accounting for Bond
Q: ZARAT Company Current liabilities is $ 540000 Current Assets are $ 900000 Determine the current…
A: Formula: Working capital = current Assets - Current liabilities. Deduction of current liabilities…
Q: What are the Generally Accepted Auditing Standards? List and briefly explain them.
A: GAAS (Generally Accepted Auditing Standards) is indeed a set of standardized rules used among…
Q: Using the annual cost data below, if industry considering producing 7,500 units per year, determine…
A: W.N. 1 Calculation of Depreciation per Year Description Project A Project B…
Q: The following information were taken from the statement of realization and liquidation of ABC…
A: Net income: 66,000
Q: nount Sell of Pri arkup
A: Markup on Cost = Profit/Cost x 100 Markup on Sales = Profit/Sales x 100 Profit = Sales - Cost
Q: Marzoni's records show raw materials inventory had a beginning balance of $300 and an ending balance…
A: The term resources refer to both raw materials used in manufacturing and finished goods that are…
Q: Sherborne sold his rental house in California, for a sales price of $750,000. He recognized a…
A: The rise in the value of a financial instrument when this is sold is referred to as a capital gain.…
Q: Required information (The following information applies to the questions displayed below] Astro…
A: New variable cost per unit = $32 x 60% = $19.2 New total fixed cost = $82,400 + $149,000 = $231,400…
Q: Cash 56500 Receivables short term 25800 Invertory Payables short term Payables long term salaries…
A: The working capital is calculated as difference between current assets and current liabilities.
Q: The present value of the net cash flows for Product A is $65,145 while the cost of the initial…
A: The question is based on the concept of Financial Management. Profitability index is the ratio of…
Q: Percentage of Percentage Appraised Value (in $) First Mortgage Balance of Appraised Value Potential…
A: Percentage of appraised value in $ = Appraised value × Lenders Percentage
Q: Radford Inc. manufactures a sugar product by a continuous process, involving three production…
A: Solution:- Given, Radford Inc. manufactures a sugar product by a continuous process, involving three…
Q: verstated by P4,500 and equipment with a remaining 5 year life on the purchase date which was…
A: To find the Non-controlling interest's share as,
Q: Asset purchased for $900,000. The expected life is 5 years. salvage value is $100,000. what is the…
A: The question is related to Depreciation Accounting. The depreciation as per Straight-line Method is…
Q: Closing Entries (Net Income) Use the following partial listing of T accounts to complete this…
A: The closing entries are prepared at year end to close the temporary accounts of the business at year…
Q: Problem 14-20A (Static) Preparing a cash budget LO 14-5 Fayette Medical Clinic has budgeted the…
A: The cash budget is prepared to record cash receipts and cash payments during the period and further…
Q: Under the Acquisition Method, regardless of the purchase price, identifiable net assets of the…
A:
Step by step
Solved in 2 steps
- If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month, what is their degree of operating leverage? 0.21 1.21 2.4 5.7If sales increase from R80 000 per year to R120 000 per year, and if the operating leverage is 5, then net income should increase by: A. 167%. B. 100%. C. 334%. D. 250%.11 If sales increase from P80,000 per year to P140,000 per year, and if the operating leverage factor is 5, then net operating income should increase by: Group of answer choices 375% 167% 334% 250% 150% 875% 188%
- An A firm has sales of $10 million, variable costs of $4 million, fixed expenses of $1.5 million, interest costs of $2 million, and a 30 percent average tax rate. a) Compute its DOL, DFL, and DCL. b) What will be the expected level of EBIT and net income if next year's sales rise 10 percent? c) What will be the expected level of EBIT and net income if next year's sales fall 20 percent?Bl Inc currently has earnings before interest and taxes of P3,000,000, a degree of combined leverage of 8, and a degree of financial leverage of 2. What will be the expected earnings before interest and taxes in one year if sales decrease by 20% next year?A company has an operating leverage factor of 4. When its sales increase to P500,000, its profit before tax increased by 100%, Its variable cost ratio is 40%. How much is the company’s fixed cost?
- Zephyr sales company has sales of 1.125 million. If the company's management expects sales to grow 6.5 percent annually, how long will it be before sales double?Global Harmonic Control Systems (GHCS) forecasts its Revenues, to be $500 million in one year. The Revenue is expected to grow at 10 percent per year for the two years and then grow at 8 percent per year for the next two years, and 6 percent per year after that. All Expenses including depreciation are 60 percent of revenues. Net investment, including net working capital and capital spending less depreciation, is 10 percent of revenues. Since all costs are proportional to revenues, net cash flow (sometimes referred to as free cash flow) grows at the same rate as do revenues. GHCS is an all-equity firm with 12 million shares outstanding. A discount rate of 16 percent is appropriate for a firm of GHCS’s risk. Assume tax rate as 40%. Compute for the Price per share of Global Harmonic Control Systems (GHCS).Assuming that the fixed costs are expected to remain at P200,000 for the coming year and the sales price per unit and variable costs per unit are also expected to remain constant, how much profit after taxes will be produced if the company anticipates sales for the coming year rising to 125 percent of the current year’s level?
- MGL forecasted the following data for 2022 · Projected unit sales is 5,000 at a selling price of P65. · Variable cost ratio is 60% · Operating break-even point in sales is P250,000 · Earnings before taxes and interest is P30,000 · The P100,000 total debt of the firm requires annual payment of interest at 5%. What is the degree of combined leverage?Mendel Incorporated has an operating leverage of 3.8. If the company's sales increase by 10%, its net operating income should increase by about:In this exercise, we develop a model for the growth rate G, in thousands of dollars per year, in sales of a product as a function of the sales level s, in thousands of dollars.† The model assumes that there is a limit to the total amount of sales that can be attained. In this situation, we use the term unattained sales for the difference between this limit and the current sales level. For example, if we expect sales to grow to 4 thousand dollars in the long run, then 4 − s gives the unattained sales. The model states that the growth rate G is proportional to the product of the sales level s and the unattained sales. Assume that the constant of proportionality is 0.8 and that the sales grow to 2 thousand dollars in the long run. (a) Find a formula for unattained sales.(b) Write an equation that shows the proportionality relation for G.G =