Noah’s ark video games expects sales to grow by 25% next year. Assume that it pays out 95% of its net income. Using the following statements and the percent of sales method, forecast costs except depreciation Year 0Income StatementSales320,000Costs Except Depreciation(150,000)EBITDA170,000(15,000)155,000DepreciationEBITInterest Expense (net)(3,000)Pretax Income152,000Income Tax(53,200)98,800Net IncomeBalance SheetYear 0AssetsCash and Equivalents25,000Accounts Receivable12,000Inventories5,000Total Current Assets42,000Property, Plant and Equipment120,000MacBook Pro 98,800Net IncomeYear 0Balance SheetAssetsCash and Equivalents25,000Accounts Receivable12,000Inventories5,00042,000120,000Total Current AssetsProperty, Plant and EquipmentTotal Assets162,000Liabilities and EquityAccounts Payable45,000Debt48,000Total Liabilities93,000Stockholders' EquityTotal Liabilities and Equity69,000162,000

Costs except Depreciation in year0= 150000 Sales in year 0 = 320000 % of costs except…

Noah’s ark video games expects sales to grow by 25% next year. Assume that it pays out 95% of its net income. Using the following statements and the percent of sales method, forecast costs except depreciation

Noah’s ark video games expects sales to grow by 25% next year. Assume that it pays out 95% of its net income. Using the following statements and the percent of sales method, forecast costs except depreciation

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter28: Income Taxati On Of Trusts And Estates

Section: Chapter Questions

Problem 13CE

See similar textbooks

Related questions

Q: We hope to increase sales by 25% next year by investing in PP&E. We booked $1,500,000 in sales…

A: Sales for the current year is $1,500,000 and is expected to increase to $1,875,000 ($1500000*1.25),…

Q: You have looked at the current financial statements for J&R Homes, Company. The company has an EBIT…

A: Answer: Price per share = Total Value of firm/ No of shares

Q: Your corporation sells a product for $10 per unit. The variable expenses are $6 per unit, and the…

A: Break-even analysis is a technique used widely by the production management. It helps to determine…

Q: Lux Co. recently reported sales of P100 million, and net income equal to P5 million. The company…

A: Answer - Additional funds needed (AFN )is a financial concept used when a business looks to expand…

Q: Neeley Grocery has a monthly target operating income of $25,000. Variabe expenses are 20% of sales…

A: Compute the Neeley Grocery's operating leverage factor at the target level of operating income:…

Q: Tinsley Plastics manufactures plastic bottles used for beverages and household cleaners. The average…

A: Income: This is the amount earned from operations of a business. The operating activities are sale…

Q: Minden Company introduced a new product last year for which it is trying to find an optimal selling…

A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…

Q: Slosh Cleaning Corporation services both residential and commercial customers. Slosh expects the…

A: Weighted average contribution margin ratio = (Contribution margin ratio for Residential x Sales Mix)…

Q: You have looked at the current financial statements for Reigle Homes, Co. The company has an EBIT of…

A: Here, EBIT of this year is $2,850,000 depreciation is $225,000 Increase in Net Working Capital is…

Q: Austin Grocers recently reported the following 2008 income statement (in millions of dollars): Sales…

A: 2008 sales = $700 Increase in sales in 2009 = 25% Operating cost including depreciation in 2009 =…

Q: Database Systems is considering expansion into a new product line. Assets to support expansion will…

A: Net Income: The net income of the business is determined by subtracting the total expenses from the…

Q: ABB Company reported the results from sales of 5,000 units of Product Y for April 2022. See image.…

A: The question is based on the concept of Cost Accounting.

Q: Minden Company introduced a new product last year for which it is trying to find an optimal selling…

A: Compute present year's net operating income or loss:

Q: Pique Corporation wants to purchase a new machine for $290,000. Management predicts that the machine…

A: Formula for calculation Net Present Value is:

Q: lawn mowers, has a projected income for the coming year as follows: Sales $…

Q: Last year sales were $300,000, net operating income was $75,000, and averageoperating assets were…

A: Last year expenses = Sales - Net operating income = $300,000 - $75,000 = $225,000

Q: A company's current revenue is $62,272 per year. Because new competitors have entered the market, It…

A: EUAB is Equivalent Uniform Annual Benefit. It is the equivalent cost and benefit of the asset spread…

Q: The cost to manufacture a component used in intelligent interface was $22,000 the first year. The…

A: The present value of the cash flow is the current worth of a cash flow at a certain rate of interest…

Q: Reliance fresh has planned operating expenses of ₹170,000, a profit goal of₹35,000, and it expects…

A: Working Note :- Calculation of Cost Of Goods Sold Particulars Budgeted…

Q: ROS Corporation sold 9,000 flashlight umbrellas in 2020. Their expected units to be sold this year…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What was Laraby Company's breakeven point in units last year? How many units of product would Laraby…

Q: The company produced and sold 178,000 units forb$15 each last year. The company believes that the…

A: Formulas: New sales revenue = Increased in production *Decrease in price

Q: Compute the projected after-tax operating cash flow for Steber during the coming year.

A: Operating Cash Flow: These are cash flows of the firm generated from the normal operations. These…

Q: Foreman Publishing Company’s income for the most recent quarter was $500,000, and the averagenet…

A: Residual income is nothing but the excess income in a particular department over the opportunity…

Q: Determine the expected net operating income from sales of microchip components. The probabilities…

A: Net operating income (NOI) is defined as the income, which is calculated by analyzing the…

Q: In 2018, the company's sales was P 500,000. Its fixed costs amounted to P 100,000 per year. In 2019,…

A: Profit Volume ratio used to analyze the change in print due to change in sales. It is calculated by…

Q: make in excel and take screenshots. A Pumpkin Pie Manufacturing Company pays on the tenth day after…

A: Company can decrease the cost if working capital has been reduced and that is possible by decrease…

Q: Steber Packaging, Inc., expects sales next year of $50 million. Of this total, 40 percent is…

A: Operating expenses=$25millionAccelerated Depreciation=10millionMarginal tax rate=34%

Q: A start-up company expects to spend $100,000 the first year for advertising, with amounts decreasing…

A: Equivalent annual worth is the annual worth of all the cash flows received/ paid during a project.…

Q: You have just completed the first year of operation for your business andhave the following…

Q: Assume that next year, management wants the company to earn a minimum profit of $ 500,000. How many…

A: Desired Sales - Desired Sales (in Units) is the sales required to be made by the company to earned a…

Q: What is the margin, turnover and ROI if the existing company performs the same next year AND it adds…

A: Ratio are the sub set, which is the group of metrics used for measuring the profitability as well as…

Q: Simpson Corporation expects to sell the following number of units of their newest product: Year…

A: Excel Spreadsheet:

Q: What is Armin’s breakeven point in 2019?

A: Margin of safety = Total sales - Breakeven sales. Breakeven sales = Total sales - Margin of safety.

Q: The cost for manufacturing a component used in intelligent interface converters was $23,000 the…

A: The question gives the following information:

Q: Compute the projected after-tax operating cash flow for Steber during the coming year. E

A: Operating Cash Flows: Operating cash flows represent the cash generated by the firm from its normal…

Q: Finlay Corporation had sales this year of $3,270 million, and sales are expected to grow by 20…

A: Formula: Net income = Revenues - expenses Deduction of expenses from revenues derives the net…

Q: Steber Packaging Inc. expects sales next year of $42 million. Of this total, 40 percent is expected…

A: The annual cash expenditures and inflows associated with a project are represented by net cash flow.…

Q: Net revenues at an older manufacturing plant will be $2 million for this year. The net revenue will…

A: The present value of the cash flow is the current worth of a cash flow at a certain rate of interest…

Q: Austin Grocers recently reported the following 2019 income statement (in millions of dollars): Sales…

A: WN-1 Computation of projected sales and operating expense Projected sales = 700 x (1+30%) = 700 x…

Question

Year 0
Income Statement
Sales
320,000
Costs Except Depreciation
(150,000)
EBITDA
170,000
(15,000)
155,000
Depreciation
EBIT
Interest Expense (net)
(3,000)
Pretax Income
152,000
Income Tax
(53,200)
98,800
Net Income
Balance Sheet
Year 0
Assets
Cash and Equivalents
25,000
Accounts Receivable
12,000
Inventories
5,000
Total Current Assets
42,000
Property, Plant and Equipment
120,000
MacBook Pro

98,800
Net Income
Year 0
Balance Sheet
Assets
Cash and Equivalents
25,000
Accounts Receivable
12,000
Inventories
5,000
42,000
120,000
Total Current Assets
Property, Plant and Equipment
Total Assets
162,000
Liabilities and Equity
Accounts Payable
45,000
Debt
48,000
Total Liabilities
93,000
Stockholders' Equity
Total Liabilities and Equity
69,000
162,000

Leveraging special tenchniques in analyzing historical data to predict future trends. Forecasting covers the methods and types of forecasting and their application to case studies.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1 Calculation of Costs% in Year 0

VIEW

Step 2 Calculation of Forcast cost except depreciation

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

A company reported in the income statement for the current year P900,000 income before provision for income tax. Please consider the following information: Rent income received in advance P150,000Interest income on time deposit 200,000Depreciation deducted for income tax purposes in excess of financial depreciation P100,000Income tax rate 30% How much is the accounting income subject to tax?A. 900,000B. 750,000C. 700,000D. 225,000
Deferred tax liability $18,000Deferred tax asset 15,000Beta Ltd recorded a profit before tax of $80,000 for the year to 30 June 2020, which included the following items:Depreciation expense – plant $7,000Doubtful debts expense 3,000Long-service leave expense 4,000For taxation purposes the following amounts are allowable deductions for the year to 30 June 2020:Tax depreciation – plant $8,000Bad debts written off 2,000Depreciation rates for taxation purposes are higher than for accounting purposes. A corporate tax rate of 30% applies. What are the balances of the deferred tax liability and deferred tax asset at 30 June 2020?
Net profit before tax will be: a. OMR 12,740,000 b. OMR 14,540,000 c. OMR 13,440,000 d. OMR 12,540,000 Operating profit for the year will be: a. OMR 15,540,000 b. OMR 10,360,000 c. OMR 15,340,000 d. OMR 13,540,000
The Company reported net income of P7,410,000 for the current year. The following items are included in the net income:Unrealized gain on foreign translation540,000 Gain on early retirement of bonds payable 2,200,000 Adjustment of profit of prior year for error in depreciation (net of tax) 750,000Loss on fire (1,400,000). What amount should be reported as adjusted net income?
A company reported in the income statement for the current year 900,000 income before provision for income tax. Please consider the following information: Rent income received in advance 150,000Interest income on time deposit 200,000Depreciation deducted for income tax purposes in excess of financial depreciation 100,000Income tax rate 30% What amount should be reported as current provision for income tax or current tax expense for the current year?A. 225,000B. 270,000C. 230,000D. 220,000
Refer to the following financial information of Scholz Company: NOPAT 8.250.000.00 EBITDA 17,725.000.00 Net Income 5,050,000.00 Capital Expenditures 6,820,000.00 After tax capital costs 6,280.000.00 Tax rate 40% 1. Calculate the Company's depreciation and amortization expense 2. calculate its interest expense. Use 2 decimal places for your final answer. 3. calculate its EVA. Use 2 decimal places for your final answer.
Prepare an income statement with the information listed below: Accumulated Depreciation $ 35,000Accounts Payable $ 65,000Advertising Expense $ 20,625Prepaid Advertising $ 61,875Common Stock $ 50,000Depreciation Expense $ 12,500Dividend Payable $ 50,000Dividends $ 100,000Income Tax expense $ 48,000Income Tax Payable $ 35,000Interest Expense $ 3,750Interest Revenue $ 500Loss on Disposal of Assets $ 10,000Prepaid Rent $ 56,250Rent Expense $ 18,750Retained Earnings $ 836,875Sales Revenue $ 300,000Utilities Expense $ 8,750Utilities Payable $ 7,000Wage Expense $ 41,250Wages Payable $ 10,125
How is 165,000 computed for the additional accumulated depreciation? Trade in Allowance ₱400,000 Less: Book value Cost ₱1,300,000 Less: Accumulated Depreciation (₱660,000 + ₱165,000) 825,000 475,000 Loss on Trade In - October 1, 2021 -₱75,000
Subject:accounting Green Bank Corporation claimed $300,000 in Sec.179 epxense and $200000 in bonus depreciation in 2020 and the following is the remaining basis for each asset purchased in 2020 after applying Sec 179 and bonus depreciation: Desks and chairs purchasd on March remaining basis 150,000 and Computers purchased in April remaining basis 250000What is the TOTAL depreciation expense for the taxpayer in 2020?
EMC began operations during 2004. Taxable income in 2005 was $829,000. Basis differences as of 12/31/04 and 12/31/05 are as follows: Description of difference 12/31/04 12/31/05 Property, Plant, & Equipment, net: GAAP basis $1,102,000 $1,880,000 Tax basis 1,000,000 1,800,000 Basis difference $102,000 $80,000 Investments – Trading GAAP basis (fair value) $785,000 $823,000 Tax basis (cost or amortized cost) 903,000 948,000 Basis difference…
Whatiseachofthefollowinginvestmentsworthtodayassuminganannualdiscountrateof 7%? 1.(a) A3-yearmaturity“B”ratedcorporatebondwith4%annualinterestpaymentsanda principal value of £1,000
11. On June 30, 2021, Line Company incurred a P100,000 net loss from disposal of a business segment. Also, on June 30, 2021, the entity paid P40,000 for property taxes assessed for 2021. What amount should be included in the determination of net income or loss for the six-month interim period ended June 30, 2021? CHOICES: P140,000 P120,000 P100,000 P90,000