A business produces an annual net income of $103,000. The annual operating costs total rate of return is 11%. What is the estimated value of the business?
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A: EVA = Net operating profit after tax - (WACC * Captial invested) Net operating profit after tax =…
Q: Westerville Company reported the following results from last year’s operations: Sales $ 1,500,000…
A: 1. The margin related to this investment opportunity Particulars Amount Sales $ 420000…
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A: Answer:- Return on investment meaning(ROI):- ROI is a basically a measure of an investment's…
Q: East Mullett Manufacturing earned operating income last year as shown in the following income…
A: Economic value Added = Net Operating Profit After Tax - (Weighted Average Cost of Capital × Capital…
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A: The basic earning power ratio is another profitability ratio (BEP). The goal of BEP is to assess how…
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A: Residual income refers to the income that is left after making all the necessary payments of the…
Q: Last year electric autos had sales of $190 million and assets at the start of the year of $330…
A: The computation of operating profit margin will be: Operating profit margin = Amount of return on…
Q: Westerville Company reported the following results from last year’s operations: Sales $…
A: = Residual income =Operating income– { Avg. operating assets x required rate of return (ROI)}…
Q: Frontier Corp. has a contribution margin of $1,458,000 and profit of $364,500. If sales increase…
A: Definition: Gross Profit: Gross Profit is the difference between the net sales and the cost of…
Q: Last year a company had sales of $400,000, a turnover of 2.4, and a return on investment of 36%. The…
A: Turnover ratio = Total Sales / Capital employed Hence Capital employed = Total Sales / Turnover…
Q: For its most recent fiscal year, a firm reported that its contribution margin was equal to 40…
A: The question is based on the concept of Cost Accounting.
Q: Silver Incorporated reported the following results from last year’s operations: Sales $…
A: Return on investment (ROI) :— It is the ratio between net operating income and average operating…
Q: Ralston Company has operating income of $75,000, invested assets of $360,000, and sales of $790,000.…
A: DuPont Analysis states that return on equity is equal to margin of profits which is multiplied by…
Q: Last year a company had sales of $400,000, a turnover of 2.4, and a return on investment of 24%.…
A: Operating income: Operating income refers to the income earned from the day-to-day operations. It is…
Q: A firm has total interest charges of $10,000 per year, sates of $1 million, a tax rate of 40…
A: Times interest earned ratio or interest coverage ratio shows ability of the company in paying it's…
Q: Westerville Company reported the following results from last year’s operations: Sales $…
A: Lets understand the basics. Return on investment is a net operating income generated by using its…
Q: A firm operated at 90% of capacity for the past year, during which fixed costs were $420,000,…
A: Operating profit can be defined as the profit that is earned from the day-to-day operations.
Q: Carr Auto Wholesalers had sales of $1,040,000 in 20XX, and the cost of goods sold represented 74…
A: An income statement is the one prepared by the company in a structured manner to determine the net…
Q: Westerville Company reported the following results from last year's operations: Sales Variable…
A: Net operating income=Contribution-Fixed cost=$420,000×70%-$252,000=$42,000
Q: Calculate the ROI and calculate the Economic Profit.
A: Return on investment can be calculated with the formula ROI = Net IncomeInvestment=16,000100,000=…
Q: A firm operated at 80% of capacity for the past year, during which fixed costs were $190,000,…
A: Operating profit: Operating profits are the profits earned out of the core business operation. Any…
Q: Westerville Company reported the following results from last year’s operations: Sales $ 1,500,000…
A: Solution... (1). Last year's margin = Net income ÷ sales = $375,000 ÷ $1,500,000 = 0.25 =…
Q: Your Corporation’s contribution margin ratio is 29% and it’s fixed monthly expenses are $17,000. If…
A: Break-even analysis is a technique used widely by production management. It helps to determine the…
Q: Last year, a company reported sales of $715.5k, a contribution margin ratio of 39.25% and a net loss…
A: Break even point means a point where firm is neither earning profit nor incurring any loss. For…
Q: Westerville Company reported the following results from last year’s operations: Sales $…
A: 1. Margin related to this year’s investment opportunity = Net operating income/Sales Net operating…
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: 1. If the company pursues the investment opportunity and otherwise performs the same as last year,…
A:
Q: Bouvous Corporation had the following information for 2015: Revenue $400,000 Operating expenses…
A: Net income=Revenue-Operating expenses=$400,000 - $350,000=$50,000
Q: If a company has a return of investment of 12% and a capital of ₱ 1,500,000, what is the company's…
A: Company's profit = Capital x return of investment %
Q: BR Company has a contribution margin of 16%. Sales are $446,000, net operating income is $71,360,…
A: Return On Investment: This ratio is one of the most important ratios for calculating overall…
Q: A firm has total interest charges of $10,000 per year, sales of $1 million, a tax rate of 40…
A: Solution: The times interest earned ration is a measure to determine company's ability to meet its…
Q: Best Sleep Company reported the following results from last year's operations: Sales $ 1,500,000…
A: Net operating income (investment opportunity)=Contribution-Fixed cost=$240,000×70%-$144,000=$24,000
Q: DRS Sdn. Bhd. earned operating income last year as shown in the following income statement: Sales =…
A: Return on Investment (ROI) = Operating income ÷ Average operating assets * 100 Residual income =…
Q: Discuss the materiality concept. Is the dollar amount that is material the same for a company that…
A: Materiality concept: The accounting concept which focusses that all the financial items and figures…
Q: Solano Company has sales of $660,000, cost of goods sold of $450,000, other operating expenses of…
A: The operating income has been computed as follows:
Q: Lampent Lightings Company recorded for the past year sales of ₱522,500 and average operating assets…
A: The calculation of margin that Lampent needed to earn in order to achieve an ROI of 12.75% is shown…
Q: What is the Profit Margin for Stevenson Corporation, given the following info: Invested Assets =…
A: Profit margin refers to the income earned by the company from the sale of goods and services after…
Q: A company produces annual profits of ₡ 9,600,000.00 indefinitely, which is the value of the company…
A: Annual profit = ₡ 9,600,000.00 Monthly profit = ₡ 9,600,000.00 /12 = ₡ 800,000 Monthly interest…
Q: Atlas Company has a monthly target operating income of $2 expenses are 60% of sales and monthly…
A: Option (b) 1.57 is the correct answer. Solution: Contribution = Target Income + Fixed Cost…
Q: Baker Oats had an asset turnover of 1.8 times per year. If the return on total assets…
A: Return on assets = Profit margin x Asset turnover ratio Profit margin = Return on assets/Asset…
Q: Bohr Paint Company has annual sales of $12 million per year. If there is a profit of $5000 per day…
A: Gross profit is a profit a company makes after deducting associated with making and selling its…
Q: Flamengo Co is a sporting goods manufacturing. It had an operating income of $57,000, sales of…
A: Margin on Sales = Operating Income / Sales ROI = Margin on Sales * Asset Turnover Ratio
Q: 1. Assume that the contribution margin ratio of the investment opportunity was 65% instead of 70%.…
A: Solution:- 1)Calculations if the contribution margin ratio of the investment opportunity was 65%…
Q: A. Based on this information, calculate asset turnover. If required, round your answer to two…
A: Asset Turnover Ratio = Net Sales/Average capital assets*100
Q: A company had the following results last year: sales, $700,000; return on investment, 28%; and…
A: Operating income = sales x margin % = $700,000 x 8% = $56,000
Q: Last year a company had sales of $410,000, a turnover of 2.1, and a return on investment of 29.4%.…
A:
Q: A company has a capital employed of $200,000. It has a cost of capital of 12% per year. Its residual…
A: We have the following information: Capital Employed: $200,000 Cost of Capital: 12% per year…
Q: Solano Company has sales of $520,000, cost of goods sold of $380,000, other operating expenses of…
A: Residual income - Residual income means income earned even if the process to generate those income…
A business produces an annual net income of $103,000. The annual operating costs total
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- Calculate the net income for a company given the following information: Sales revenue = $100,000, Cost of goods sold = $40,000, Operating expenses = $20,000, Interest expense = $5,000, and Income tax rate = 25%.Bohr Paint Company has annual sales of $12 million per year. If there is a profit of $5000 per day with 7 days per week operation, what is the total yearly business expense? All calculations are on a before-tax basis.The annual profit P, of a small manufacturing firm is given as P+100=Xsquared +15X where X is the number of units of products produced and sold .how many units must be produced and sold to have an annual profit of 45,000
- Calculate the net profit for a company given the following information: Total revenue = $100,000, Cost of goods sold = $40,000, Operating expenses = $25,000, and Taxes = $10,000.PLease show Solutions for a guide. 1. A firm total sales is 156,000 this year. If the cost of sales is 55% . What is the amount of gross profit? 2. If the firm above earned a profit of 39,000 . How many percent of total sales is the net profit? 3. Compute for the operating expenses of the firm 1 and 2. How many percent of the total sales are the operating expenses?Suppose a company has a sale of Rs. 200,000 for the year. The cost structure is given as follows: Raw materials is 60% of sales, labour is 15% of sales, overheads is 10% of sales. The profit is 15% sales and total cost is 85% sales. What is the amount of current assets for the year if the holding periods are as follows: Raw material 15 days, work in progress 7 days, finished goods 15 days and debtors 30 days. Assume 365 days in a year. Group of answer choices Rs.35679 Rs.25789 Rs.41907 Rs.31137 Rs.40000
- You have the following data for a company. What is the return on assets (ROA)? Return on equity = 15%; Earnings before taxes = $150,000; Total asset turnover = 1.8; Profit margin = 10.5%; Tax rate = 30%.Blossom Corp. has annual sales totaling $1146000 and an average gross profit of 20% of cost. What is the dollar amount of the gross profit? $286500. $171900. $229200. $191000.XYZ Company's single product has a selling price of $15 per unit. The fixed expenses were $120,000. This year the company reported a net operating income of $60,000. If sales are predicted to increase by 10% next year, how much would the increase in profits be in ($)?
- During the current year, Sokowski Manufacturing earned income of $396,900 from total sales of $6,300,000 and average capital assets of $12,900,000. What is the sales margin? If required, round your answer to one decimal place. _____%A company sells one product and its contribution margin ratio is 10%. The company provides the following data regarding their operation: Current sales revenue $3,540,000 $3,681,600 Expected sales revenue next year Expected increase in net operating income next year 12% Q. What is the net operating income for the current year? ANS. $A company has a total fixed cost of 500.000 TL and produced 1.000.000 TL of profit this year. What would be the profit amount had the company increased its sales volume by 10%?