Please answer Exercise 9-1. Prepare a forecasted income statement for Year 12. EXERCISE 9-1Forecasting Income andIncome ComponentsCHECKForecast NI, $140.1 mil.Refer to the financial statements of Quaker OatsCompany in Problem 9-6. Prepare a forecastedincome statement for Year 12 using the following assumptions ($ millions):Quaker Oats Company1. Revenues are forecast to equal $6,000.2. Cost of sales forecast uses the average percent relation between cost of sales and sales for the three-yearperiod ending June 30, Year 11.3. Selling, general, and administrative expenses are expected to increase by the same percent increase occurringfrom Year 10 to Year 11.4. Other expenses are predicted to be 8% higher than in Year 11.5. A $2 million loss (net of taxes) is expected from disposal of net assets from discontinued operations.interest income, is expected to increase by 6% due to6. Interest expense, net of interest capitalized andincreased financial needs.7. The effective tax rate is equal to that of Year 11. INCOME STATEMENTYear ended June 30 ($ millions except per share data)Net sales ......Cost of goods sold.......Gross profit.....Selling, general, and administrative expensesInterest expense-net of $9.0, $11.0, and $12.4 interest income ....Other expense-net.Income from continuing operations before income taxes.Provision for income taxes ....Income from continuing operationsIncome (loss) from discontinued operations-net of tax ......Net income......Preferred dividends-net of tax..Net income available for commonPer common shareIncome from continuing operations ....Income (loss) from discontinued operations....Net income .....*Y..ker Oats CompanyYear 11$5,491.22,839.72,651.52,121.286.232.6.. $$411.5175.7235.8(30.0)205.84.3... $201.5.... $ 3.05(.40)2.65Dividends declared.......$ 1.56Average number of common shares outstanding (in thousands).... 75,904Year 10$5,030.62,685.92,344.71,844.1101.816.4382.4153.5228.9(59.9)169.04.5$164.5$2.93(.78)$ 2.15$ 1.4076,537Year 9$4,879.42,655.32,224.11,779.056.4149.6239.190.2148.954.1203.0$203.0$ 1.88.68$2.56$ 1.2079,307PROBLEM 9-6Forecasting the Statemeof Cash Flocus

Forecasted net income means to forecast the revenues and all the operating expenses to reach the…

EXERCISE 9-1 Forecasting Income and Income Components CHECK Forecast NI, $140.1 mil. Quaker Oats Company Refer to the financial statements of Quaker Oats Company in Problem 9-6. Prepare a forecasted income statement for Year 12 using the following assumptions ($ millions): 1. Revenues are forecast to equal $6,000. 2. Cost of sales forecast uses the average percent relation between cost of sales and sales for the three-year period ending June 30, Year 11. 3. Selling, general, and administrative expenses are expected to increase by the same percent increase occurring from Year 10 to Year 11. 4. Other expenses are predicted to be 8% higher than in Year 11. 5. A $2 million loss (net of taxes) is expected from disposal of net assets from discontinued operations. 6. Interest expense, net of interest capitalized and interest income, is expected to increase by 6% due to increased financial needs. 7. The effective tax rate is equal to that of Year 11.

EXERCISE 9-1 Forecasting Income and Income Components CHECK Forecast NI, $140.1 mil. Quaker Oats Company Refer to the financial statements of Quaker Oats Company in Problem 9-6. Prepare a forecasted income statement for Year 12 using the following assumptions ($ millions): 1. Revenues are forecast to equal $6,000. 2. Cost of sales forecast uses the average percent relation between cost of sales and sales for the three-year period ending June 30, Year 11. 3. Selling, general, and administrative expenses are expected to increase by the same percent increase occurring from Year 10 to Year 11. 4. Other expenses are predicted to be 8% higher than in Year 11. 5. A $2 million loss (net of taxes) is expected from disposal of net assets from discontinued operations. 6. Interest expense, net of interest capitalized and interest income, is expected to increase by 6% due to increased financial needs. 7. The effective tax rate is equal to that of Year 11.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter21: Variable Costing For Management analysis

Section: Chapter Questions

Problem 15E

See similar textbooks

Similar questions

Refer to Cornerstone Exercise 3.4 for data on Dohini Manufacturing Companys purchasing cost and number of purchase orders. The controller for Dohini Manufacturing ran regression on the data, and the coefficients shown by the regression program are: Required: 1. Construct the cost formula for the purchasing activity showing the fixed cost and the variable rate. 2. If Dohini Manufacturing Company estimates that next month will have 430 purchase orders, what is the total estimated purchasing cost for that month? (Round your answer to the nearest dollar.) 3. What if Dohini Manufacturing wants to estimate purchasing cost for the coming year and expects 5,340 purchase orders? What will estimated total purchasing cost be? (Round your answer to the nearest dollar.) What is the total fixed purchasing cost? Why doesnt it equal the fixed cost calculated in Requirement 1?
Sales transactions Using transactions listed in P4-2, indicate the effects of each transaction on the liquidity metric working capital and profitability metric gross profit percent. Indicate the gross profit percent for each sale (rounding to one decimal place) in parentheses next to the effect of the sale on the company’s ability to attain an overall gross profit percent of 30%.
YEAR SALES WEIGHTS 1 $1,079,864 0.1 2 $1,238,586 0.2 3 $1,409,078 0.3 4 $1,098,274 0.1 5 $1,578,968 0.3 6 ? ? 1. Using the sales information above, calculate both the averaging and the weighted sales forecasts using Microsoft Excel. Be sure to write the simple formulas in the spreadsheet, rather than calculating the answers by hand and entering the numbers directly into the spreadsheet. In addition, do the following with your spreadsheet. Brief instructions on how to accomplish the Excel functions are below. a. Be sure the gridlines are showing for the print mode. b. Create a title for the table and include it on the top line of the spreadsheet. c. Be sure to include dollar signs where appropriate. Instructions for Excel 1. First, you need to…
Question 1: Muscat Company has the financial information given in the table for the year ended on 30 September 2021. It is assumed that volume of production and volume of sales are equal. According to the information given, you are required to calculate the following; a) Break-even point (in units and amount) b) PV ratio c) Margin of Safety (as percentage) amount and as OMR Sales (actual) 1,600,000 Total fixed cost 900,000 Selling price per unit 375 Variable cost per unit 225
Multiproduct breakeven analysis and target profit, taxes Pursuit Company produces two products: Bric and Brac. The following table summarizes the products' details and planned unit sales for the upcoming period: Bric BrAc Sellingpriceperunt...........$S25$30 Variablecostperunit ... $14$17 Planned unit sales volume . . . . . . 800, 000 400,000 Pursuit Company has total fixed costs of $10 million and faces a tax rate of 30%. Required (a)What is Pursuit Company's expected profit at the planned level of sales? (b)Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to break even? (c) Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to earn an after-tax income of $910, 000 ?
Question 3 Study the information given below and answer: 3.1 Calculate the total Marginal Income and Net Profit/Loss if all the tables are sold. INFORMATION Samcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022: 1. Total production and sales 2. Selling price per table 3. 4. 5. Variable manufacturing costs per table: Direct material Direct labour Overheads Fixed manufacturing overheads Other costs: Fixed marketing and administrative costs Sales commission 2 400 units R1 200 R288 R192 R96 R216 960 R144 000 5%
chapter 3 7. Determine the customer return percent when gross sales are $138,300 and net sales are $127,430. Round your answer to two decimal places and add a percent sign (i.e. 15.37%).
QUESTION 2 REQUIRED Use the information provided below to answer each of the following questions independently: 2.1 Calculate the break-even quantity. 2.2 Calculate the sales value required to achieve a net profit of R150 000, using the marginal income ratio. 2.3 Determine the selling price per unit if a net profit of R624 600 is desired. INFORMATION The following information was extracted from the budget of Mary's Manufacturers for the period July to December 2021: 1. Total production and sales 2 300 units | 2. Selling price per unit R200 3. Variable manufacturing costs per unit: Direct materials R60 Direct labour R40 Overheads R20 4. Fixed manufacturing overheads R200 000 5. Other costs: Fixed marketing and administrative costs R100 000 Sales commission 10% of sales
Assume a company reported the following results: Sales $ 400,e00 Variable expenses Contribution margin Fixed expenses 260,e00 140,000 96,e00 Net operating income $ 44,000 Average operating assets $ 350, 000 The margin is closest to: Muitiple Choice 12.9%. 35.0%. 114.3%.
Exercise 9-12 (Algo) Calculate gross profit, cost of goods sold, and selling price LO 9-2, 9-3 MBI Incorporated had sales of $36 million for fiscal 2022. The company's gross profit ratio for that year was 26%. Required: a. Calculate the gross profit and cost of goods sold for MBI for fiscal 2022. b. Assume that a new product is developed and that it will cost $488 to manufacture. Calculate the selling price that must be set for this new product if its gross profit ratio is to be the same as the average achieved for all products for fiscal 2022. c. From a management viewpoint, it could use the estimated selling price as a "target" in conducting marketing research studies to assess its ultimate prospects for success at this price. Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate the gross profit and cost of goods sold for MBI for fiscal 2022. Note: Enter your answers in millions rounded to 2 decimal places. (i.e., 5,500,000…
7. Which one of these is not an objective of cost accounting? a.Assisting shareholders in decision making b.Cost control and reduction c.Ascertainment of cost d.Determination of selling price 8. Calculate EOQ from the following details: Consumption per month is 2,000 units, ordering cost is RO 10 per order, purchase price is RO 100 per unit and annual carrying cost is 6%. a.283 units b.245 units c.219 units d.310 units
A company has following details for this yearDetails Total sales($) Total cost($) Details Total sales($) Total cost($)Year ended 31/12/2018 35,78,998 25,89,709Year ended 31/12/2019 48,90,742 31,67,984 Calculate P/V ratio, Fixed cost, break even sales, Margin of safety 2018/2019, Variable cost 2018/2019and percent of fixed cost 2018/2019