Income Statement: A small food stall owned by Ms. Lopez is located at San Fernando Pampanga. She earns P 285,000 at the present and is expected to increase by 10% yearly. Prepare her 5-year income statement. Financial Assumptions: 1. 10% of the projected sales is cost of sales 2. The operating expenses is amounting to 35,000 for year 2018 and it's expected to increase by 5% per year. 3. Income tax is assumed to be 20%. 2018 2019 2020 2021 2022 Sales Less: Cost of Sales Gross Profit Less: Operating Expenses Net income before tax Less: Income tax Net revenue after tax
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- Assume that a customer shops at a local grocery store spending an average of $350 a week, resulting in a retailer profit of $30 each week from this customer. Assuming the shopper visits the store all 52 weeks of the year, calculate the customer lifetime value if this shopper remains loyal over a 10-year life span. Also, assume a 6 percent annual interest rate and no initial cost to acquire the customer. How much does the customer yield per year in profits for this retailer? (Round to the nearest dollar.)Tony Ring wants to attend Northeast College. He will need $60,000 4 years from today. Assume Tony’s bank pays 12% interest compounded semiannually. Amount needed $ 60,000.00 Length of time needed from today 4 Interest 12% Compounded Semiannually Required: Complete the following using the information above and the present value Table 12.3 or the present value table in the Business Math Handbook to answer the following: Period used: Rate used: Factor used: What must Tony deposit today so he will have $60,000 in 4 years?Tony Ring wants to attend Northeast College. He will need $60,000 4 years from today. Assume Tony’s bank pays 12% interest compounded semiannually. Amount needed $ 60,000.00 Length of time needed from today 4 Interest 12% Compounded Semiannually Required: Complete the following using the information above and the present value Table 12.3 or the present value table in the Business Math Handbook to answer the following: Period used: Rate used: Factor used: What must Tony deposit today so he will have $60,000 in 4 years? Present value of $1 at end of period Period 1% 1½% 2% 3% 4% 5% 6% 7% 8% 9% 10% 1 .9901 .9852 .9804 .9709 .9615 .9524 .9434 .9346 .9259 .9174 .9091 2 .9803 .9707 .9612 .9426 .9246 .9070 .8900 .8734 .8573 .8417 .8264 3 .9706 .9563 .9423 .9151 .8890 .8638 .8396 .8163 .7938 .7722 .7513 4 .9610 .9422 .9238 .8885 .8548 .8227 .7921 .7629 .7350 .7084 .6830 5 .9515 .9283 .9057 .8616 .8219 .7835 .7473 .7130 .6806 .6499 .6209 6 .9420 .9145 .8880 .8375…
- Hello can you please walk me through how to do this the annual income is 113,300 It is wise to set aside 7.5% of gross monthly income for 401 k investment. Assume the investment earns a 5% annual return and use Excel to determine the balance after 40 years for the unskilled worker and for your expected income. Then use Excel to determine how many years it would take for the unskilled worker and for your expected investment to reach $500,000.The owner of a bicycle repair shop forecasts revenues of $196,000 a year. Variable costs will be $59.000, and rental costs for the shop are $39.000 a year. Depreciation on the repair tools will be $19.000. a. Prepare an income statement for the shop based on these estimates. The tax rate is 20% Calculate the operating cash flow for the repair shop using the three methods given below Now calculate the operating cash flow 1. Dollars in minus dollars out 2. Adjusted accounting profits, in 3.Add back depreciation tax shieldThe owner of a bicycle repair shop forecasts revenues of $216000 a year. Variable costs will be $64,000 and rental costs for the shop are $44000 a year. Depreciation on the repair tools will be $24000 1. Prepare an income statement for the shop based on these estimates. The tax rate is 20%
- The owner of a bicycle repair shop forecasts revenues of $160,000 a year. Varlable costs will be $50,000, and rental costs for the shop are $30,000 a year. Depreciation on the repair tools will be $10,000. a. Prepare an income statement for the shop based on these estimates. The tax rate is 20%. INCOME STATEMENT Depreciation Pretax profit Rental costs Revenue Taxes b. Calculate the operating cash flow for the repair shop using the three methods given below: 1. Dollars in minus dollars out. II. Adjusted accounting profits. III. Add back depreciation tax shield. Methods of Calculation i. Dollars in minus dollars out ii. Adjusted Accounting profits iii. Add back depreciation tax shield Operating Cash flowQuestion: : Lillian is considering using some of the cash generated from her mail-order business to open a retail store. The fixed investment in the store is expected to be $3.5 million. This investment can be depreciated straight line over five years. Variable costs are estimated to be 35% of sales. The tax rate is 0%. Cash fixed costs total $600,000 per year. a) What is the net income breakeven point (in sales $) during the first five years? What is it after the fifth year?The owner of a bicycle repair shop forecasts revenues of $216000 a year. Variable costs will be $64,000 and rental costs for the shop are $44000 a year. Depreciation on the repair tools will be $24000 1. Prepare an income statement for the shop based on these estimates. The tax rate is 20% Calculate the operating cash flow for the repair shop using the 3 methods given below. Now calculate the operating cash flow 1. Dollars in Minus Dollars out 2. Adjusted accounting profit 3. After-tax operating cash flow
- Pasti Berhad values, advertises and sells residential property on behalf of its customers. The companyhas been in business for only a short time and is preparing a cash budget for the first four months ofyear 2020. Expected sales of residential properties are as follows.Year 2019 2020 2020 2020 2020Month December January February March AprilUnits sold 10 10 15 25 30The average price of each property is RM180,000 and Pasti Berhad charges a fee of 3% of the valueof each property sold. Pasti Berhad receives 1% in the month of sale and the remaining 2% in themonth after sale. The company has ten employees who are paid monthly. The average salary peremployee is RM36,000 per year. If more than 20 properties are sold in each month, each employeewill be paid in that month a bonus of RM1,500 for each additional property sold.Variable expenses are incurred at the rate of 50% of the value of each property sold and theseexpenses are paid in the month of sale. Fixed overheads of RM44,300 per month…Lillian is considering using some of the cash generated from her mail-order business to open a retail store. The fixed investment in the store is expected to be $3.5 million. This investment can be depreciated straight line over five years. Variable costs are estimated to be 35% of sales. The tax rate is 0%. Cash fixed costs total $600,000 per year. a) What is the net income breakeven point (in sales $) during the first five years? What is it after the fifthMr. Flores made a money market placement of P1, 000.000 for 30 days at 7.5% per year. If the withholding tax is 20%, what is the net interest that Mr. Flores will receive at the end of the month? Ans. Net Interest = P5, 000 A bill for a motorboat specifies the cost as P1, 200 due at the end of 100 days but offers a 4% discount for cash in 30 days. What is the highest rate, simple interest at which the buyer can afford to borrow money in order to take advantage of the discount? Ans. r = 21.4% The monthly demand for ice cans being manufactured by Mr. Sison is 3,200 pieces with a manually operated guillotine, the cost cutting price is 25 pesos per piece. An electrically operated hydraulic guillotine is offered to Mr. Sison with the price of 275,000 pesos and which will cut by 30% less the unit cutting cost of money. How many months will Mr. Sison be able to recover the cost of the machine if he decides to buy now. Ans. 11.5 months