Clinton Co. has an operating leverage of 4. Sales are expected to increase by 6% next year. Operating income is _____. a. expected to increase by 1.5% b. expected to increase by 4 times c. unaffected d. expected to increase by 24%
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- Larger Company had originally expected to earn operating income ofPhp130,000 in the coming year. Its degree of operating leverage is 2.4.Recently, larger revised its plan and now expects to increase sales by 20%next year. What is the percentage change in operating income for thecoming year? a. 8.33%b. 48.00%c. 20.00%d. 54.17%If 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%.Cordell, Inc., has an operating leverage of 3. Sales are expected to increase by 9% next year. What is the expected change in operating income next year?
- Sales for Green Inc. are expected to change by 16%. If Green's degree of operating leverage is 2.20, how much is Green's operating income expected to change? A В D E 1 2 3 Green's operating income is expected to change by: 4 6 7 8 9 10Global Corp. expects sales to grow by 7% next year. Using the percent of sales method and the data provided in the given tables LOADING... , forecast: a. Costs except depreciation b. Depreciation c. Net income d. Cash e. Accounts receivable f. Inventory g. Property, plant, and equipment h. Accounts payable (Note: Interest expense will not change with a change in sales. Tax rate is 26%.) The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. Income Statement Net Sales 185.3Costs Except Depreciation -175.4EBITDA 9.9Depreciation and Amortization -1.2EBIT 8.7Interest Income (expense) -7.7Pretax Income 1Taxes (26%) -0.3Net Income 0.7 Balance Sheet Assets Cash 23.4Accounts…Galleon & Sons company has a degree of operating leverage 2.15. Management expects a rise in revenues of 4%. What will be the percentage increase in operating income as a result of the increase in revenue? 1.86% 6.15% 8.60% O 10.46%
- For the most recent year, Robin Company reports operating income of $660,000. Robin's sales margin is 7%, and capital turnover is 2.0.What is Robin's return on investment (ROI)? Question 15 options: 2% 7% 4% 14%Last year sales were $300,000, net operating income was $75,000, and averageoperating assets were $500,000. If sales next year remain the same as last year andexpenses and average operating assets are reduced by 5%, what will be the return oninvestment next year?a. 12.2%b. 18.2%c. 20.2%d. 25.2%Oman Cement has the following returns. Beginning value%3DOMR. 1000, End of Year1= OMR 1050, End of Year 2-OMR. 1100, End of Year 3=OMR. 1250, End of Year 4= OMR 1300. Calculate Average Annual Growth rate (AAGR) of the company Select one:
- Give typing answer with explanation and conclusion Consider a company that is projected to generate revenues of $104 million next year. Analysts expect revenues to grow at a 4.6% annual rate for the following two years (until the end of year 3) and then at a stable rate of 2.5% in perpetuity. If the company is expected to have a gross margin of 75%, operating margin of 35%, net margin of 25%, tax rate of 16.4%, and reinvestment rate of 34%, what is its expected free cash in four years from today? Answer in millions, rounded to one decimal placeDu Pont Analysis. Keller Cosmetics maintains an operating profit margin of 5% and asset turnover ratio of 3. a. what is ROA? b. If its debt-equity ratio is 1, its interest payments and taxes are each 8000, and EBIT is 20,000 what is its ROE? * I know ROA is Asset Turnover x OPM which gives me .15. How do I analyze this? Is it for every dollar spent on assets you get a return of 15%. Also How do I solve for b. Please give me step by step instructions. For the ROE, I was able to solve for NI given the EBIT, Interest Pay, and Tax. This is 4000. However I don't know how to solve for equity to find ROA. Can you give me step by step instructions/full explanations on how to calculate equity?Cathey Corporation currently has sales of $1,000, which are expectedto grow by 10% from Year 0 to Year 1 and by 4% from Year 1 toYear 2. The company currently has an operating profitability (OP)ratio of 7% and a capital requirement (CR) ratio of 50% and expectsto maintain these ratios at their current levels. The current levelof total net operating capital (OpCap) is $510. Use these inputs toforecast free cash flow (FCF) for Years 1 and 2. (Hint: You must firstforecast sales, net operating profit after taxes (NOPAT), and total netoperating capital (OpCap) for each year.) ($37.00 and $58.08)
