Kanye West makes shoes. Current sales of Yeezy shoes are $52,000. Kanye West's average operating assets are $23,000 and total liabilities are $19,500. West does not think he can meaningfully increase his company's turnover, but he does believe he can increase his margin. What margin is needed on Kanye West's Yeezy shoes to give him a Return on Investment of 0.11? Round your answer to 2 d.p.
Q: Prepare the budgeted multiple-step income statement for 2022. (Ignore income taxes.)
A: The income statement is the statement that depicts the financial performance of the entity. It is…
Q: 1. Using the above facts, how much is Mr. Chico taxable net income is? 2. Using the same facts, If…
A: To calculate Mr. Chico's taxable net income, we need to add up all his income and then subtract any…
Q: Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a standard…
A: Standard costing is the practise of predicting production-related costs because producers are unable…
Q: For the payroll period ended on May 28, 2022. gross pay was $119,000, net pay was income tax…
A: During each payroll period, an employer calculates each employee's gross earnings based on the…
Q: What was the gross margin for Halal Cosmetics as at Dec 31, 2015?
A: Gross margin is also referred to as gross profit. Gross margin is described both in absolute terms…
Q: Kingbird Company's record of transactions for the month of April was as follows. April 1 (balance on…
A: Inventory is one of the important current asset being used in business. Under average cost method,…
Q: Consider the following transactions of Johnson Software: Mar. 31 Apr. 6 Recorded cash sales of…
A: Sales tax is the amount of tax which is collected from the customer and remitted to government by…
Q: Shadee Corporation expects to sell 590 sun shades in May and 450 in June. Each shade sells for $146.…
A: Budgets are prepared in the organization in the below mentioned sequence; Sales budget production…
Q: Waldo is planning to start a clothing store helping big and tall men blend in with the crowd. Select…
A: Meaning of corporation- Corporation means a legal entity that is considered to be separate from its…
Q: During 20--, Rachael Lopez, president of Mathieson Company, was paid a semimonthly salary of $7,500.…
A: OASDI Tax: The OASDI (Old Age, Survivors, and Disability Insurance program) tax, often referred as…
Q: Adam Fleeman, a skilled carpenter, started a home improvement business with Tom Collins, a master…
A: The FICA tax is a source of income for the government. The money collected through FICA taxes is…
Q: Flounder Corp. has these accounts at December 31: Common Stock, $10 par, 5,000 shares issued,…
A: Stockholders' equity, also known as shareholders' or owners' equity, is a type of equity held by…
Q: When Crossett Corporation was organized in January, Year 1, it immediately issued 5,100 shares of…
A: The dividend is declared from the retained earnings of the business. The cumulative preference…
Q: Tomorrows Electronic Center began July with 90 units of merchandise inventory that cost $60 each.…
A: It is important for businesses to carefully evaluate their inventory needs and select the method…
Q: Cumulative resent Value of Present Value of Net Cash Flows Net Cash Flows $ (116,400) $ (116,400)…
A: Break-even time = it is a time when the cumulative present value of net cash is equal to zero. Time…
Q: Olivet Devices sells two models of fitness devices. The budgeted price per unit for the wireless…
A: Variance arises when there is difference between actual costs and standard costs. The variance is…
Q: Lastly, can you show me how to do this one? 22. In 2018, XYZ, Inc. sold 2,000 beds for $50 each.…
A: Estimated warranty liability is the amount of money that a company expects to spend to fulfill its…
Q: Accounting is the language businesses and other organizations use to record, measure and interpret…
A: Financial statements give significant information about a company's financial performance and…
Q: XYZ Company has budgeted sales for the next six months as follows: March April May June July August…
A: Sales are made on cash basis and credit basis. the amount to be collected from Sales made on credit…
Q: Exercise 13-1 (Static) Identifying Relevant Costs [LO13-1] Svahn, AB, is a Swedish manufacturer of…
A: Relevant Cost In Management accounting the term of Relevant cost is really matter. Relevant cost is…
Q: ahing business as a sole proprietorship. She oversees a team of 10 cleaning personnel, markets th…
A: A sole proprietorship is an unincorporated company with just one owner, who is responsible for…
Q: 1. Determine the amount of depreciation expense for the four years ending December 31 by (a) the…
A: Depreciation: Depreciation Cost is the price that is charged as an expense and is spread out over…
Q: Can I ask where the 2,380 came from?
A: When an account of customer is way past its due date then it is considered as bad debts. Thus, it is…
Q: Mercury Corporation issued 6,000 shares of no-par common stock for $20 per share. Mercury also…
A: As per dual concept of accounting, assets are always equal to the sum of liabilities and…
Q: Can yous show me what formulas and the calculations for the follwoing; 1) How did you get to the…
A: Cash flow statement is one of financial statements prepared at the end of accounting period. This…
Q: Process inventory an Low Point produces fleece jackets. The company uses JIT costing for its JIT…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: 103 EZslide snowboards were sold. Buffalo Corp. uses a period anation ntory mases ases ases Units…
A: Ending inventory units = 140 - 103 = 37 units Cost of ending inventory : FIFO LIFO Average…
Q: Totodile Inc. shows total material costs for the period to be $66,000. What is the material cost…
A: Materials refers to all commodities consumed in the process of production. The term inventory…
Q: son manages i Dairy es of 40 per week. Sampson's payroll deductions includ on of $9 for a charitable…
A: The United States government uses the Federal Payroll System (FPS) to handle and oversee employee…
Q: Stay-In-Style (SIS) Hotels Inc. is considering the construction of a new hotel for $30 million. The…
A: Time value of money :— According to this concept, value of money in present day is greater than the…
Q: 2) If Anna deposits $11,500 in the bank today, what will her money be worth in 3 years at 8% if it's…
A: FUTURE VALUE Future Value is the Value of Present Cash Flow at any Future Date. Future value is…
Q: Crane Corp's controller was preparing the adjusting entries for the company's year ended December…
A: To keep track of a business transaction, the business entities record the transactions in the…
Q: Lacy's Linen Mart uses the average cost retail method to estimate inventories. Data for the first…
A: Inventory means the products, goods, or materials, that a business holds for the purpose of resale,…
Q: b. Company B has current assets of $234,000, total assets of $459,000, and equity of $100,000. The…
A: Non-current liabilities are a company's commitments that are not projected to be paid off within the…
Q: repare a statement of cash flows using the indirect method. ote: Amounts to be deducted and cash…
A: Solution The cash flow statement is a financial statement which is used to calculate the inflow…
Q: Sheridan Inc. had sales of $2,024,000 for the first quarter of 2022. In making the sales, the…
A: MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is One of the Important Cost…
Q: If the project's weighted average cost of capital (WACC) is 9%, what is its NPV? O $307,147 EB O…
A: This relates to capital budgeting. We have to use capital budgeting tools like NPV and payback.
Q: is a high level of human security by investment, recycling, core value, quality education and…
A: The United Nations defines human security as a strategy that seeks to defend and empower individuals…
Q: Barrett Chemicals manufactures four chemicals, Chem-1, Chem-2, Chem-3, and Chem-4, from a joint…
A: The joint cost is the cost that benefits more than one product. The joint cost is incurred during…
Q: Listed below are costs (or discounts) to purchase or construct new plant assets. (1) Indicate…
A: The question is related to identification of expenses which are of revenues nature and capital…
Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…
A: Stockholders' equity is net assets which is owned by the stockholders. It can also be found out by…
Q: P Cleaning Products manufactures a product using a process that allows for substitution between two…
A: Standard costing is the practice of predicting production-related costs because producers are unable…
Q: business operated at 100% of capacity during its first month and incurred Production costs (19,300…
A: The fixed overhead costs are allocated to the cost of a product based on a predetermined overhead…
Q: Pete Nunn is trying to decide whether to go ahead with an investment opportunity that costs $60,000.…
A: PAYBACK PERIOD Payback Period is one the Important Traditional Capital Budgeting Technique. Payback…
Q: Meowth Company has one job remaining in its work in process inventory account with a $150,000…
A: Job costing is one of the important form of costing being used in business. Under this costing,…
Q: 123456 2. On January 1, 2021, Tom R started a business The company had the following accounting…
A: Financial statements are defined as the records that are prepared by the business entities as per…
Q: The corridor for 2021 was $600,000. The amount of AOCI-net loss amortized in 2021 was
A: Accumulated Other Comprehensive Income (AOCI) : Accumulated Other Comprehensive Income (AOCI) are…
Q: Ford Corporation paid $10,200,000 for a 47% interest in Allen Corporation on January 1, 20X1 when…
A: When a company acquires more than 20% but less than 50% in the voting stock of another company, the…
Q: Allied Merchandisers was organized on May 1. Macy Company is a major customer (buyer) of Allied…
A: The journal entries are prepared to record the transactions on regular basis. Using perpetual…
Q: ary 1 (15,000 units) units purchased 6,000 units sold ses $ 52,500 436,900 734,000 129,000 onsisted…
A: Orioie Company Condensed Income statement Particular FIFO LIFO Sales $734,000 $734,000…
Kanye West makes shoes. Current sales of Yeezy shoes are $52,000. Kanye West's average operating assets are $23,000 and total liabilities are $19,500. West does not think he can meaningfully increase his company's turnover, but he does believe he can increase his margin.
What margin is needed on Kanye West's Yeezy shoes to give him a Return on Investment of 0.11?
Round your answer to 2 d.p.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Arnold Vimka is a venture capitalist facing two alternative investment opportunities. He intends to invest $1 million in a start-up firm. He is nervous, however, about future economic volatility. He asks you to analyze the following financial data for the past year’s operations of the two firms he is considering and give him some business advice. Company Name Larson Benson Variable cost per unit (a) $ 19.00 $ 9.50 Sales revenue (8,100 units × $28.00) $ 226,800 $ 226,800 Variable cost (8,100 units × a) (153,900 ) (76,950 ) Contribution margin $ 72,900 $ 149,850 Fixed cost (24,300 ) (101,250 ) Net income $ 48,600 $ 48,600 Required Use the contribution margin approach to compute the operating leverage for each firm. If the economy expands in coming years, Larson and Benson will both enjoy a 11 percent per year increase in sales, assuming that the selling price remains unchanged. Compute the change in net income for…Arnold Vimka is a venture capitalist facing two alternative Investment opportunities. He intends to invest $1,000,000 in a start-up firm. He is nervous, however, about future economic volatility. He asks you to analyze the following financial data for the past year's operations of the two firms he is considering and give him some business advice. Variable cost per unit (a) Sales revenue (8,100 units × $28.00) Variable cost (8,100 units x a) Contribution margin. Fixed cost Net income Required A Variable cost per unit Sales revenue Variable cost Contribution margin Required a. Use the contribution margin approach to compute the operating leverage for each firm. b. If the economy expands in coming years, Larson and Benson will both enjoy a 11 percent per year Increase in sales, assuming that the selling price remains unchanged. Compute the change in net income for each firm in dollar amount and in percentage. (Note: Since the number of units Increases, both revenue and variable cost will…Arnold Vimka is a venture capitalist facing two alternative investment opportunities. He intends to invest $1,000,000 in a start-up firm. He is nervous, however, about future economic volatility. He asks you to analyze the following financial data for the past year's operations of the two firms he is considering and give him some business advice. Variable cost per unit (a) Sales revenue (8,100 units $30.00) Variable cost (8,100 units a). Contribution margin Fixed cost Net income Company Name Larson $18.00 $243,000 (145,800) $ 97,200 (25,000) $ 72,200 Company Name Operating leverage Benson $9.00 Required a. Use the contribution margin approach to compute the operating leverage for each firm. b. If the economy expands in coming years, Larson and Benson will both enjoy a 10 percent per year increase in sales, assuming that the selling price remains unchanged. Compute the change in net income for each firm in dollar amount and in percentage (Note: Since the number of units increases, both…
- Arnold Vimka is a venture capitalist facing two alternative investment opportunities. He intends to invest $1,000,000 in a start-up firm. He is nervous, however, about future economic volatility. He asks you to analyze the following financial data for the past year’s operations of the two firms he is considering and give him some business advice. Company Name Larson Benson Variable cost per unit (a) $ 18.00 $ 9.00 Sales revenue (8,900 units × $29.00) $ 258,100 $ 258,100 Variable cost (8,900 units × a) (160,200 ) (80,100 ) Contribution margin $ 97,900 $ 178,000 Fixed cost (24,700 ) (104,800 ) Net income $ 73,200 $ 73,200 Required Use the contribution margin approach to compute the operating leverage for each firm. If the economy expands in coming years, Larson and Benson will both enjoy a 11 percent per year increase in sales, assuming that the selling price remains unchanged. Compute the change in net income for…Arnold Vimka is a venture capitalist facing two alternative investment opportunities. He intends to invest $1,000,000 in a start-up firm. He is nervous, however, about future economic volatility. He asks you to analyze the following financial data for the past year's operations of the two firms he is considering and give him some business advice. Variable cost per unit (a) Sales revenue (8,300 units × $29.00) Variable cost (8,300 units x a) Contribution margin Fixed cost Net income Required a. Use the contribution margin approach to compute the operating leverage for each firm. b. If the economy expands in coming years, Larson and Benson will both enjoy a 11 percent per year increase in sales, assuming that the selling price remains unchanged. Compute the change in net income for each firm in dollar amount and in percentage. (Note: Since the number of units increases, both revenue and variable cost will increase.) c. If the economy contracts in coming years, Larson and Benson will both…Arnold Vimka is a venture capitalist facing two alternative investment opportunities. He intends to invest $1,000,000 in a start-up firm. He is nervous, however, about future economic volatility. He asks you to analyze the following financial data for the past year's operations of the two firms he is considering and give him some business advice. Variable cost per unit (a) Sales revenue (8,600 units x $31.00) Variable cost (8,600 units x a) Contribution margin Fixed cost Net income Company Name Larson $ 20.00 $ 266,600 (172,000) $ 94,600 (25,000) $ 69,600 Benson $ 10.00 $ 266,600 (86,000) $ 180,600 (111,000) $ 69,600 Required a. Use the contribution margin approach to compute the operating leverage for each firm. b. If the economy expands in coming years, Larson and Benson will both enjoy a 11 percent per year increase in sales, assuming that the selling price remains unchanged. Compute the change in net income for each firm in dollar amount and in percentage. (Note: Since the number…
- You have invested in a business that proudly reports that it is profitable. Your investment of $4800 has produced a profit of $298. The managers think that if you leave your $4800 invested with them, they should be able to generate S298 per year in profits for you in perpetuity. Evaluating other investment opportunities, you note that other long-term investments of similar risk offer an expected return of 8%. Should you remain invested in this firm? The expected return of your investment is %. (Round to one decimal place.)Assume the following: • A company is importing and selling Mercedes cars. • An Islamic bank invests US$8 million for an 80% profit share. • An investor invests US$2 million for a 20% profit share. • The investor is to be paid a 10% management fee as percentage of profit after expenses. • Sale proceeds = US$12,400,000 Expenses = US$200,000 Calculate the following: 1.1. The total return to the bank: 1.2. The total return to the investor:You have been asked by your employers to demonstrate your knowledge in business valuation process, by analyzing the value of Best Group Savings and Loans Company (BGSLC). The company paid a dividend of GH¢ 250,000 this year. The current return to shareholders of companies in the same industry as BGSLC is 12%, although it is expected that an additional risk premium of 2% will be applicable to BGSLC, being a smaller and unquoted company. Compute the expected valuation of BGSLC, if: The current level of dividend is expected to continue into the foreseeable future The dividend is expected to grow at a rate 4% par into foreseeable future The dividend is expected to grow at a 3% rate for three years and 2% afterwards
- Musharaka with Profits Assume the following:_ A company is importing and selling Mercedes cars. An Islamic bank invests US$8 million for an 80% profit share. An investor invests US$2 million for a 20% profit share. The investor is to be paid a 10% management fee as a percentage of profit after expenses. Assume: Sale proceeds = US$12,400,000 Expenses = US$200,000 Calculate: 1. The total return to the bank: 2. The total return to the investor: please provide an accurate and step by step answer.You are trying to value Lucid Motors using comparables analysis. You believe Lucid Motors should be valued similarly to TSLA and that TSLA is the only reasonable comparison. TSLA is currently trading at 10.7x Enterprise Value/Revenue. Lucid is expected to generate $2.2bn in revenues this year. How mucb should you be willing to value Lucid in terms of enterprise Value (assuming market is correct)? $20.6bn $23.5bn $15.4 bn $21.7 bnInc. has a total asset turnover of 0.45, an equity multiplier of 2.5 and a profit margin of 10.2. The CFO thinks that he can double the return on equity by making some changes. The new profit margin would be boosted to 10% and an additional 1 dollar of sales revenue would be generated by every dollar of asset. By how much does she decrease the debt ratio in order to double the return on equity?