A company reports the following for the past year. Sales $ 11,680,000 Income 5,256,000 Average assets 29,200,000 The company's CFO believes that income for next year will be $6,832,800. Average assets will be the same as the past year. 1. Compute return on investment for the past year. 2. If the CFO's forecast is correct, what will return on investment be for next year?
Q: Shi Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the…
A: It is important to note that in a Chapter 7 bankruptcy, most unsecured creditors will not receive…
Q: president, however, is unhappy with the results for August because only 59,000 units were produced.…
A: Flexible Budget: A flexible budget adapts to fluctuations in real revenue. Once an accounting period…
Q: Air Qual Test Corporation provides on-site air quality testing services. The company provided the…
A: The flexible performance report is prepared to make comparison between actual performance and the…
Q: Axel Company and Rod Company completed the following merchandising transactions in the month of…
A: The journal entries are prepared to record the transactions on regular basis. The perpetual…
Q: If a company in the United States sells a product to another country it is considered a/an If a…
A: International Business Transaction - The intricate processes involved in conducting business…
Q: me company uses the LIFO inventory costing method, w much is cost of goods sold for the month of…
A: The following inventory methods used for inventory valuation as follows under:--Specific…
Q: FAR5 - Chapter 7: Consolidated Statement of Financial Position Question 1 Dayang Berhad acquired…
A: Consolidation refers to the process of merger or acquisition where one company acquires another…
Q: A company buys a $12,000 machine on January 1 of Year 1, with a useful life of 5 years and a $2,000…
A: The Depreciation expense is charged on fixed assets as reduction in the value of the fixed assets…
Q: On January 2, 2025, Oriole Co. issued at par $1920000 of 6% convertible bonds. Each $1000 bond is…
A: Diluted earnings per share refers to the amount of net income available to common shareholders after…
Q: For the 2022 taxation year, Marion Blue has net employment income of $45,000, spousal support…
A: Net employment income: $45,000Spousal support received: $18,000Net business loss: $3,500Interest…
Q: Mr. Gilbert is self-employed and makes annual contributions to a Keogh plan. Mrs. Gilbert's employer…
A: To compute the Adjusted Gross Income (AGI) after deducting contributions to traditional IRAs for the…
Q: How does an employer know how much to withhold from a your paycheck for federal income tax? Your…
A: Employers must deduct federal income tax from workers' paychecks.The amount withheld is not…
Q: Current Attempt in Progress Sandhill Inc. had 978000 shares of common stock issued and outstanding…
A: Basic EPS stands for "Basic Earnings Per Share," which is a financial metric used to indicate a…
Q: Required information [The following information applies to the questions displayed below.] In…
A: The cash flow statement is prepared to record the cash flow from various activities during the…
Q: Company A leases computer servers to Company B for five years. At the end of the five years, Company…
A: Alternative Use:This test considers whether the leased asset has no alternative use to the lessor at…
Q: Bart's investment property was condemned. His basis in the property was $100000. He received a net…
A: A gain or loss is recognized while comparing the cash received against the sale of the property with…
Q: Muin Corporation paid $500 on account. The effect of this transaction on Muin’s accounting equation…
A: Muin Corporation paid $500 on account, impacting its accounting equation. This transaction involves…
Q: You are required to: (a) Draw up a Job Cost Sheet; (b) Calculate and enter the revised costs using…
A: A job cost sheet is prepared at the end of the period to determine the total cost incurred for a…
Q: Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture…
A: The variance is the difference between the standard and actual cost data. The variance can be…
Q: Rotan Corporation keeps careful track of the time required to fill orders. The times recorded for a…
A: THROUGHPUT TIMEThroughput time is the amount of time it takes for a product or service to go through…
Q: Using these data from the comparative balance sheets of Blossom Company, perform vertical analysis.…
A: VERTICAL ANALYSIS OF BALANCE SHEETVertical analysis is a proportional analysis of financial…
Q: Based on the information below, what amount should be recorded for depreciation at the end of Year 2…
A: Depreciation is considered an expense charge on the value of the asset. It can be calculated by…
Q: Required: 1. Calculate the amount of interest that Mason should capitalize in 2024 and 2025 using…
A: As per IFRS, borrowing cost incurred on acquisition or construction of a 'Qualifying Asset' shall…
Q: On January 1, 2024, Dolar Incorporated had the following account balances in its shareholders'…
A: The total sum of money that would be paid back to the shareholders in the event that the firm was to…
Q: e following questions to answer Q5 to 07. Hamstrung Electronics Inc. (HEI) has 6 billion shares…
A: Earnings Per Share -The financial ratio known as earnings per share, or EPS, is calculated by…
Q: Required: a. Compute the activity rates (i.e., cost per unit of activity) for the activity cost…
A: Activity-based cost accounting is a costing approach that allocates overhead and other indirect…
Q: Ruby entered a combat zone March 3, 2022, before she had an opportunity to file her 2021 income tax…
A: A taxpayer automatically gets an extension to file their federal income tax return if they are in a…
Q: A small business recently discovered that a material error in payroll resulted in the company not…
A: To record any unrecognized income or expenses for the period company made an adjusting entry at the…
Q: As a boba manufacturer company, Ngeboba supplies boba to Gula Hula and BobaTime. Ngeboba supplies…
A: Transfer pricing can be defined as the value which is attached to the goods or services transferred…
Q: Port Austin Boat Repair Inc. has entered and posted its adjusting entries for the current year. The…
A: The financial statements are prepared using the adjusted trial balance. The income statement tells…
Q: Stranger Things Corporation is planning to add a new product to its line. To package this product,…
A: Capital budgeting for a new machine involves evaluating its financial impact over time. This process…
Q: Record the above transactions in the special journals.
A: DateDescriptionPurchases Journal (RM)Sales Journal (RM)Returns Inwards Journal (RM)Returns Outwards…
Q: North Street Corporation manufactures two models of motorized go-carts, a standard and a deluxe…
A: Activity Rate :— It is the rate used to allocate manufacturing overhead cost to cost object under…
Q: 1. Purchase equipment in exchange for cash of $20,400. 2. Provide services to customers and receive…
A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: For each numbered item, indicate the immediate (versus ultimate) source of the item.
A: A payroll application is a software system designed to manage and automate the process of paying…
Q: Week 5 Assignment: Inventory and Budgeting Escoffier SCHOOL OF CULINARY ARTS Overview: Follow the…
A: SCHEDULE OF COST OF GOODS MANUFACTUREDSchedule Of Cost Of Goods Manufactured are those costs which…
Q: following table is a simplified balance sheet of Lancia Company for the year ended December 31, 2018…
A: Cash Flow Statement -The cash flow statement, commonly known as the statement of cash flows, is one…
Q: (Enter only one word per blank.) Blank 1 X or split Blank 2 X off Blank 3 x Ĝ Feedback
A: The split-off point in production marks the juncture where distinct products, known as joint…
Q: Ahmed contributes cash of $12, 000 and Fatima contributes Office equipment that cost $10,000but…
A: A journal entry is produced to document the contributions made by partners when they pool their…
Q: Hypothetical comparative condensed balance sheets of Nike, Inc. are presented here. NIKE, INC.…
A: Horizontal analysis is the way to calculate the variance from the different year by year to show an…
Q: compute the total payroll expense and total gross Pay for the month ended august 31, 2024 and fill…
A: A payroll register is a statement or document that contains every employee's payroll data. In…
Q: Walton Company measured its quality costs for the past two years and summarized those costs using…
A: Answer:- To ascertain the entire efficacy of a business's quality management system, the process of…
Q: Salmone Company reported the following purchases and sales of its only product. Salmone uses a…
A: INVENTORY VALUATIONInventory Valuation is a Method of Calculation of Value of Inventory at the End…
Q: Jayleen Company makes two products: Carpet Kleen and Floor Deodorizer. Operating information from…
A: The following formula used to calculate as follows under:-Contribution per machine hour =Total…
Q: Breaded Oak, Incorporated has a policy that requires 20 percent of the expected sales of its product…
A: Production Budget:- This budget is prepared to estimate the number of units to be produced for…
Q: What is a disadvantage of the corporate form? O Profit O Revenue Owners have very little influence…
A: Eliminating the incorrect options:A. Profit: Profit is not a disadvantage of the corporate form of…
Q: Lin Corporation has a single product whose selling price is $134 per unit and whose variable expense…
A: The target profit is the amount of profit that a company's managers expect to produce at the…
Q: perform the analysis for Exxon Mobil • Company background: Name of company, Auditor, Industry,…
A: A comprehensive financial analysis involves a thorough examination and evaluation of a company's…
Q: Gable Company uses three activity pools. Each pool has a cost driver. Information for Gable Company…
A: Activity Rate :— It is the rate used to allocate manufacturing overhead cost to cost object under…
Q: Bob, age 67, and Jane, age 58, are married and have one son, Will, who lives with them. They provide…
A: For the tax year 2023, the standard deduction amounts depend on the filing status. Since Bob and…
Step by step
Solved in 3 steps
- Suppose the company has just the opposite news and now expects unit sales for August, September, and October to be double (200%) the original estimates. What effect will this have on the company’s net income and borrowing? Explain your findings.Smiley Corporations current sales and partial balance sheet are shown here. Sales are expected to grow by 10% next year. Assuming no change in operations from this year to next year, what are the projected spontaneous liabilities?A company reports the following for the past year. Sales Income Average assets $ 11,680,000 5,256,000 29,200,000 The company's CFO believes that income for next year will be $6,832,800. Average assets will be the same as the past year. 1. Compute return on investment for the past year. 2. If the CFO's forecast is correct, what will return on investment be for next year? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute return on investment for the past year. Numerator: Return on Investment / Denominator: = Return on investment =
- A company reports the following for the past year. Sales Income Average assets $ 17,650,000 7,766,000 35,300,000 The company's CFO believes that income for next year will be $10,095,800. Average assets will be the same as the past year. 1. Compute return on investment for the past year. 2. If the CFO's forecast is correct, what will return on investment be for next year? Complete this question by entering your answers in the tabs below. Required 1 Required 2 ces Compute return on investment for the past year. Numerator: Return on Investment I Denominator: Return on investmentSuppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the year just ended were $10.9 million. The firm also has a profit margin of 25 percent and a retention ratio of 30 percent, and expects sales of $8.9 million next year. Assets Current assets Fixed assets Total assets $ 2,621,000 4,900,000 $ 7,521,000 Liabilities and Equity Current liabilities Long-term debt Equity Total liabilities and equity If all assets and current liabilities are expected to shrink with sales, what amount of additional funds will Gyp Sum need from external sources to fund the expected growth? Note: Enter your answer in dollars not in millions. Negative amount should be indicated by a minus sign. X Answer is complete but not entirely correct. Additional funds needed (243,300) X $ 2,557,140 1,950,000 3,013,860 $ 7,521,000Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the year just ended were $10.2 million. The firm also has a profit margin of 30 percent and a retention ratio of 20 percent, and expects sales of $8.2 million next year. Assets Current assets Fixed assets Total assets $ 2,124,000 4,200,000 $ 6,324,000 Liabilities and Equity Current liabilities Long-term debt Equity Total liabilities and equity Additional funds needed $ If all assets and current liabilities are expected to shrink with sales, what amount of additional funds will Gyp Sum need from external sources to fund the expected growth? Note: Enter your answer in dollars not in millions. Negative amount should be indicated by a minus sign. Answer is complete but not entirely correct. 1,397,200 x $ 1,707,480 1,600,000 3,016,520 $ 6,324,000
- Using AFN formula in financial forecasting approach, given the following accounting information assuming that the firm's profit margin remains constant and the company is at full capacity. Sales = 6,000,000 Percentage increase projected for next year sales = 20% Net income this year = 600,000 Retention ratio = 50% Accounts Payabale = 1,100,000 Notes Payable = 180,000 Accrued expenses = 500,000 Projected excess funds available next year is = 200,000 Spontaneous liabilities increase is?Using AFN formula in financial forecasting approach, given the following accounting information assuming that the firm's profit margin remains constant and the company is at full capacity. Sales = 6,000,000 Percentage increase projected for next year sales = 20% Net income this year = 600,000 Retention ratio = 50% Accounts Payabale = 1,100,000 Notes Payable = 180,000 Accrued expenses = 500,000 Projected excess funds available next year is = 200,000 Total assets amounted to?Suppose that Psy Ops Industries currently has the balance sheet shown below, and that sales for the year just ended were $4.4 million. The firm also has a profit margin of 20 percent, a retention ratio of 25 percent, and expects sales of $7.4 million next year. Assets Liabilities and Equity Current assets $ 1,980,000 Current liabilities $ 1,672,000 Fixed assets 3,700,000 Long-term debt 1,800,000 Equity 2,208,000 Total assets $ 5,680,000 Total liabilities and equity $ 5,680,000 If fixed assets have enough capacity to cover the increase in sales and all other assets and current liabilities are expected to increase with sales, what amount of additional funds will Psy Ops need from external sources to fund the expected growth? Note: Enter your answer in dollars not in millions. Negative amount should be indicated by a minus sign.
- Suppose a firm has had the following historic sales figures. Year: Sales 2016 $1,900,000 2017 $2,150,000 2018 $1,800,000 2019 $2,400,000 2020 $2,000,000 What would be the forecast for next year's sales using the average approach? Next year's salesSuppose a firm has had the following historic sales figures. What would be the forecast for next year's sales using the average approach? You must use the built-in Excel function to answer this question. Input area: Year Sales 2016 2017 2018 es es e $ 1,500,000 $ 1,750,000 $ 1,400,000 2019 $ 2,000,000 2020 $ 1,600,000 Output area: Next year's salesConsider the following information that you propose to use to obtain an estimate of year 2004 EPS for the MacLog Company. Estimated Year 2019 Year 2020 GDP 11,000 Billion GDP growth 3.5% Sales per share $800 Operating profit margin 12% Depreciation/Fixed Assets 14% Fixed asset turnover 2 Interest rate 3.5% Total asset turnover 0.7 Debt/Total assets 45% Tax rate 36% In addition, a regression analysis indicates the following relationship between growth in sales per share for MacLog, and GDP growth is %Δ Sales per share = 0.015 + 0.75(%Δ GDP) Refer to Exhibit 9.6. Calculate the firm's level of Total Assets per share for the year 2020. a. $1,385.77 b. $1,113.58 c. $1,050.65 d. $1,065.67 e. $1,190.06