You are working as the finance manager for SamCo Ltd. The following data is available for the company as of 31 June 2021: Sales $2,586,500 Cost of goods sold 752,000 Wages and salary 125,750 Selling Expenses 45,300 Insurance expense 2,500 Utilities 12,500 Interest payment 48,050 Depreciation Expense 32,000 Corporate Tax 30% Required: Calculate operating profit, tax payment and build an income statement for the company? The company’s Management Board required you to prepare a report about capital structure of the company. Name at least 4 financial ratios and their formulas, of which you need to discuss about financial leverage of the company in the report? Calculate the net profit margin (NPM) and total assets of the company given total assets turnover is 1.3. Also, Calculate accounts receivable turnover of the company, given average accounts receivable is $98,000, assuming all sales are on credit?
You are working as the finance manager for SamCo Ltd. The following data is available for the company as of 31 June 2021: Sales $2,586,500 Cost of goods sold 752,000 Wages and salary 125,750 Selling Expenses 45,300 Insurance expense 2,500 Utilities 12,500 Interest payment 48,050 Depreciation Expense 32,000 Corporate Tax 30% Required: Calculate operating profit, tax payment and build an income statement for the company? The company’s Management Board required you to prepare a report about capital structure of the company. Name at least 4 financial ratios and their formulas, of which you need to discuss about financial leverage of the company in the report? Calculate the net profit margin (NPM) and total assets of the company given total assets turnover is 1.3. Also, Calculate accounts receivable turnover of the company, given average accounts receivable is $98,000, assuming all sales are on credit?
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 4TP: You are considering two possible companies for investment purposes. The following data is available...
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Question
You are working as the finance manager for SamCo Ltd. The following data is available for the company as of 31 June 2021:
|
Sales |
$2,586,500 |
|
Cost of goods sold |
752,000 |
|
Wages and salary |
125,750 |
|
Selling Expenses |
45,300 |
|
Insurance expense |
2,500 |
|
Utilities |
12,500 |
|
Interest payment |
48,050 |
|
|
32,000 |
|
Corporate Tax |
30% |
Required:
- Calculate operating profit, tax payment and build an income statement for the company?
- The company’s Management Board required you to prepare a report about capital structure of the company. Name at least 4 financial ratios and their formulas, of which you need to discuss about financial leverage of the company in the report?
- Calculate the net profit margin (NPM) and total assets of the company given total assets turnover is 1.3. Also, Calculate accounts receivable turnover of the company, given average accounts receivable is $98,000, assuming all sales are on credit?
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