Kross Ltd, a company that sells bicycles, had sales last month of Rs 40,000, EBIT of Rs 4,000, netincome of Rs 1800, an interest expense of Rs 1000, and earnings per share (EPS) of Rs 1.8. The DOLwas 6.0. Sales for the coming month are expected to be Rs. 44,000.a) Calculate DFL and DCL.b) What was the profit before taxes last month?c) What is the profit before taxes expected to be for the coming month?d) What is the EPS expected to be for the coming month?

Answered: Image /qna-images/answer/81866b24-aac3-43e7-8187-ce11de5aa685.jpg

Answered: Kross Ltd, a company that sells…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter22: Master Budget (master)

Section: Chapter Questions

Problem 5R: Suppose the company has just the opposite news and now expects unit sales for August, September, and...

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Bed Bug Inn has annual sales of $137,000. Earnings before interest and taxes are equal to 5.8 percent of sales. For the period, the firm paid $4,700 in interest. What is the profit margin if the tax rate is 34 percent? Can you provide the formula?
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Farhan Corporation fixed monthly fixed expenses are Rs. 370,000 and its contribution margin ratio is 55%. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income or operating loss in a month when sales are Rs. 830,000?
he Brenmar Sales Company had a gross profit margin (gross profits÷sales) of 34 percent and sales of $8.3 million last year. 79 percent of the firm's sales are on credit, and the remainder are cash sales. Brenmar's current assets equal $1.5 million, its current liabilities equal a. If Brenmar's accounts receivable equal $563,000, what is its average collection period? b. If Brenmar reduces its average collection period to 25 days, what will be its new level of accounts receivable? c. Brenmar's inventory turnover ratio is 8.9 times. What is the level of Brenmar's inventories? $303,100, and it has $104,400 in cash plus marketable securities.
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Steel Scrap Trader sells its product at a Gross Margin of 25% on Sales. Its Annual Sales are estimated to be Rs 360 Million. The Inventory turnover ratio for the business is 4 times whereas the receivable turnover ratio is 3 times. Using this information, estimate the amount of inventory in hand and trade receivable outstanding at the end of the year.?
Provincial Imports, Inc., has assembled last year's financial statements (income statement and balance sheet LOADING... ) and financial projections for use in preparing financial plans for the coming year. Information related to financial projections for next year is as follows: (1) Projected sales are $6,006,000. (2) Cost of goods sold last year includes $998,000 in fixed costs. (3) Operating expense last year includes $246,000 in fixed costs. (4) Interest expense will remain unchanged. (5) The firm will pay cash dividends amounting to 35% of net profits after taxes. (6) Cash and inventories will double. (7) Marketable securities, notes payable, long-term debt, and common stock will remain unchanged. (8) Accounts receivable, accounts payable, and other current liabilities will change in direct response to the change in sales. (9) A new computer system costing $364,000 will be purchased during the year. Total depreciation expense for the year will be $116,000.…
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