Year one income statement by months ( sales by year 3 $2.7m 2.7 m /3 = $900,000 average each year sales 900,000 / 12 = $75,000 sales each month Revenues: Net sales $75,000 each month Expenses and loses Costs of goods sold 1,786 x $15.60 = $27,863.78 Capital expenses $1,150 / 12= $95.83 Location expenses $76,415/ 12 = $6,367.92 Advertising / Promotional expenses $78,285/ 12 = $6,523.75 CalculateTotal expenses Depreciation expense is straight line for this project ?. Use the market value of the asset divided by monthly expected life of the asset, We will not use salvage value in calculating depreciation expense.

Year one income statement by months ( sales by year 3 $2.7m 2.7 m /3 = $900,000 average each year sales 900,000 / 12 = $75,000 sales each month Revenues: Net sales $75,000 each month Expenses and loses Costs of goods sold 1,786 x $15.60 = $27,863.78 Capital expenses $1,150 / 12= $95.83 Location expenses $76,415/ 12 = $6,367.92 Advertising / Promotional expenses $78,285/ 12 = $6,523.75 CalculateTotal expenses Depreciation expense is straight line for this project ?. Use the market value of the asset divided by monthly expected life of the asset, We will not use salvage value in calculating depreciation expense.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.9E: Working Backward: Gross Profit Ratio Acmes gross profit ratio increased by 20% over the prior year....

See similar textbooks

Similar questions

Assume the following sales data for a company: Current year $1,025,000 Preceding year 820,000 What is the percentage increase in sales from the preceding year to the current year? Oa. 125% Ob. 25% Oc. 75% Od. 100%
Assume the following sales data for a company: Year 2 $562,500 Year 1 $450,000 What is the percentage increase in sales from Year 1 to Year 2 (to the nearest whole percent)? O a. 20% O b. 125% О с. 25% O d. 80%
Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expense 99,000 Administrative expense* 44,500 Total selling and 143,500 administrative expenses Net operating income *Includes $22,000 of depreciation each month. April May June July $510,000 $1,040,000 $490,000 $390,000 357,000 728,000 343,000 273,000 312,000 147,000 117,000 153,000 9,500 $ b. Sales are 20% for cash and 80% on account. c. Sales on account are collected over a three-month period with 10% collected in the month of sale; 70% collected in the first month following the month of sale; and the remaining 20% collected in the second month following the month of sale. February's sales totaled $205,000, and March's sales totaled $245,000. 1. Inventory purchases are paid for within 15 days. Therefore, 50% of a month's inventory purchases are paid for in the month of purchase. The remaining 50% is paid in the following month. Accounts payable at March 31 for Inventory purchases during March total…
If Net sales $200,000, Cost of goods sold 90,000, Operating expenses 80,000, Net income10,000, Total assets 180,000, Total liabilities 120,000, Cash flow from operating activities 5,000, Happy Valley's operating profit margin is: Operating Income/Net sales Select one: a. 40% b.5% c. 55% d. 15%
Question 1 During Goodluck Company's first 2 years of operations, the company reported the following net income as follows: Year 1 Year 2 Sales @ $25 Cost of goods sold @ $18 per unit Gross profit Selling and administrative expenses per unit $1,000,000 $1.250,000 (720,000) (900,000) 280,000 350,000 (210,000) (230,000) ($2 per unit variable; $130 fixed each year) Net income 70,000 120,000 The company's $18 unit product cost is computed as follows: Direct materials $4 Direct labour $7 Variable Manufacturing overhead Fixed manufacturing overhead ($270,000 + 45,000 units $1 $6 Production and cost data for the two years are Year 1 Year 2 Units produced Units sold 45,000 40,000 45,000 50,000 Required: а) Compute the product cost. b) Prepare a variable costing contribution format income for Year 1 and Year 2
Sales $24,350,735 Cost of goods sold 15,300,000 Gross margin $9,050,735 Operating expenses 4,910,685 Operating income $4,140,050 Interest expense 498,015 Income before taxes $3,642,035 Income taxes 1,461,214 Net income $2,180,821 Required: Calculate the times-interest-earned ratio. Round the answer to one decimal place. times
Calculate the sales from the given information Cost of goods sold is $38,000 Net income is $14,625 Depreciation is $5000 Tax rate is 35% A. $35,500 B. $51,619 C. $69,000 D. $64,000
Given the following: Number of Units 170 Vacancy Rate 5% Monthly Rent $1,000 Operating Expenses $750,000 Collection Loss 3 % Debt Service $360,000 Calculate on an Annual Basis: (There are no negative numbers in this answer) a. What is the Potential Gross Income (PGI)? b. What is the Effective Gross Income (EGI)? c. What is the Net Operating Income (NOI)? d. What is the Before Tax Cash Flow (BTCF)? e. Utilizing a capitalization rate of 8.5%, what is the estimated value of the property? Please provide the proper keystrokes for the BAII Plus Professional and Qualifier Plus IIIfx calculators. Thank you!
Assume the following sales data for a company: Current year $770,668 Preceding year 635,551 What is the percentage increase in sales from the preceding year to the current year? a.121.26% b.17.53% c.82.47% d.21.26%
Sales 8.250.000.00 Operating costs 4,725.000.00 Operating income 3,525,000.00 Interest expense 1,750,000.00 Earnings before taxes 1,775,000.00 Taxes (40%) 621,250.00 Net income 1,153,750.00 WACC = 8%, Total invested capital 24,875,000. Calculate the EVA. (2 decimal places)
wo years. EXERCISE 15-2 Financial Ratios for Assessing Liquidity LO15-2 ending December 31 appear below. The company did not issue any new common stock during the payable was 12%, the income tax rate was 40%, and the dividend per share of common stock was this year was $18. All of the company’s sales are on account. year Deceof 800,000 shares of common stock were outstanding, The interest rate on the bond year. $0.75 last year and $0.40 this year. The market value of the company's common stock at the end of Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash .... $ 1,280 $ 1,560 Accounts receivable, net 12,300 9,100 Inventory .... 9,700 8,200 Prepaid expenses 1,800 2,100 Total current assets 25,080 20,960 Property and equipment: Land ..... 6,000 6,000 Buildings and equipment, net .. 19,200 19,000 epeA Total property and equipment ... 25,200 25,000 Total assets $50,280 $45,960 Liabilities and Stockholders' Equity Current…
Assume Juniper Natural Dyes made Net Sales Revenue of $90,000 and Cost of Goods Sold totaled $58,000. What was Juniper Natural Dyes’s gross profit percentage for this period? (Round your answer to the nearest whole percent.) a. 36% b. 3.4 times c. 64% d. 17%