Homework Answers
| a) | |||
| Sales | 1231000 | ||
| Variable costs: | |||
| COGS | 486000 | ||
| Contribution margin | (1231-486)/1231=60.52% | ||
| Fixed cost = SG&A + Depreciation | |||
| Fixed cost = 1109000+420000 = 1529000 | |||
| Book Break even = Fixed Cost / contribution margin | |||
| Book Break even = 1529000/60.52% = $2526438 | |||
| Cash Break even = (Fixed Cost - Depreciation)/ contribution margin | |||
| Cash Break even = (1529000-420000)/ 60.52% = $1832452 | |||
| b) | |||
| Sales | 1231000 | ||
| Variable costs: | |||
| COGS | 486000 | ||
| SG&A | 1231000*30%=369300 | ||
| Total Variable Cost | 855300 | ||
| Contribution margin | (1231-855.3)/1231=30.52% | ||
| Fixed cost = Fixed SG&A + Depreciation | |||
| Fixed cost = (1109000-369300)+420000 = 1159700 | |||
| Book Break even = Fixed Cost / contribution margin | |||
| Book Break even = 1159700/30.52% = $3799803 | |||
| Cash Break even = (Fixed Cost - Depreciation)/ contribution margin | |||
| Cash Break even = (1159700-420000)/ 30.52% = $2423657 | |||
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An abbreviated income statement for Startup Co is as follows:...
Prepare a pro forma income statement for 2015 using the percent-of-sales method. What is the expected...
Prepare a pro forma
income statement for 2015 using the percent-of-sales method. What
is the expected net income?
We also know the break-down into fixed and variable costs for
2014:
Prepare a pro forma income statement for 2015 using the
percent-of-sales method and distinguish between fixed and variable
costs. What is the expected net income?
Intro Income statement for 2014 Line item Sales - COGS = Gross profit - SG&A - Depreciation = Operating profit - Interest = Taxable income...
just need help filling in the blanks! thank you OUTPUT Income Statement INPUT 2014 250,000 300,000...
just need help filling in the
blanks! thank you
OUTPUT Income Statement INPUT 2014 250,000 300,000 120,000 150,000 2013 Cash Flow 2014 Sales Cost of Good Sold Cash Depreciation Interest Expense Tax Rate SG&A Long Tem Debt Initial Equity Investment Accounts Receivable Inventory Gross Fixed Assets Accumulated Depreciation Accounts Payable Retained Eamings 2013 2014 Sales COGS NI Plus Depreciation Cash Income 20,000 36,000 8,000 40.0% 50,000 40,000 9,000 40.0% 55,000 240,000 230,000 150,000 150,000 42,000 14,500 800,000 820,000 Gross margin...
Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement...
Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (11,000 units at $300 each) $ 3,300,000 Variable costs (11,000 units at $240 each) 2,640,000 Contribution margin 660,000 Fixed costs 360,000 Pretax income $ 300,000 The marketing manager believes that increasing advertising costs by $125,000 in 2020 will increase the company’s sales volume to 12,400 units. Prepare a forecasted contribution margin income statement for 2020 assuming the...
Hudson Co. reports the contribution margin income statement for 2017 HUDSON CO. Contribution Margin Income Statement...
Hudson Co. reports the contribution margin income statement for 2017 HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (11,200 units at $280 each) Variable costs (11,200 units at $210 each) Contribution margin Fixed cost Pretax income $3,136,000 2,352,000 $784,000 567.000 $ 217,000 Exercise 18-18 Evaluating strategies LO C2 Assume the company is considering investing in a new machine that will increase its fixed costs by $37,500 per year and decrease its variable costs by $10...
The contribution margin income statement of Sweet Pea Donuts for August 2018 follows: (Click the icon...
The contribution margin income statement of Sweet Pea Donuts for August 2018 follows: (Click the icon to view the contribution margin income statement.) Sweet Pea sells four dozen plain donuts for every dozen custard-filled donuts. A dozen plain donuts sells for $4.00, with total variable cost of $1.60 per dozen. A dozen custard-filled donuts sells for $8.00, with total variable cost of $3.20 per dozen. Read the requirements Requirement 1. Calculate the weighted average contribution margin. (Round all currency amounts...
I need assistance with requirements 3,4 and 5, please. The contribution margin income statement of Unique...
I need assistance with requirements 3,4 and
5, please.
The contribution margin income statement of Unique Donuts for August 2018 follows: E: (Click the icon to view the contribution margin income statement.) Unique sells four dozen plain donuts for every dozen custard-filled donuts. A dozen plain donuts sells for $4.00, with total variable cost of $1.60 per dozen. A dozen custard-filled donuts sells for $7.00, with total variable cost of $2.80 per dozen. Read the requirements. Data Table Requirement 1....
I have no idea what I am missing. Thank you for your help in advance! The...
I have no idea what I am missing. Thank you for your help in
advance!
The following Income statement and Information about changes in noncash current assets and current liabilities are reported. $1,828,eee 991, eee 837,000 SONAD COMPANY Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $245,535 Depreciation expense 44,200 Rent expense 49,600 Amortization expenses-Patents 4,200 Utilities expense 18,125 Gain on sale of equipment Net income 361,660 475,340 6,200...
value: 2.40 points Hudson Co. reports the contribution margin income statement for 2015. Assume sales remain...
value: 2.40 points Hudson Co. reports the contribution margin income statement for 2015. Assume sales remain constant at 10,100 units. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2015 Sales (10,100 units at $249 each) Variable costs (10,100 units at $200 each) $ 2,514,900 2,020,000 $ Contribution margin Fixed costs 494,900 328,500 Pretax income $ 166,400 Assume the company is considering investing in a new machine that will increase its fixed costs by $43,000 per year and...
is this enough? URLUuuy PIUDICT V2 Rand Co., a new startup business, is preparing budgets for...
is this enough?
URLUuuy PIUDICT V2 Rand Co., a new startup business, is preparing budgets for the first quarter 2020 ending March 31. • Budgeted sales of the company's only product for the next five months are: January February March April May 9,100 units 5,000 units 6,600 units 4,100 units 4,600 units • The selling price is $85 per unit. Prepare the following elements of the master budget for this problem: 1. Sales budget (with a schedule of expected cash...
3. Income statement The income statement, also known as the profit and loss (P&L) statement, provides...
3. Income statement
The income statement, also known as the profit and loss
(P&L) statement, provides a snapshot of the financial
performance of a company during a specified period of time. It
reports a firm’s gross income, expenses, net income, and the income
that is available for distribution to its preferred and common
shareholders.
The income statement is prepared using the generally accepted
accounting principles (GAAP) that match the firm’s revenues and
expenses to the period in which they were...
Prepare a pro forma
income statement for 2015 using the percent-of-sales method. What
is the expected net income?
We also know the break-down into fixed and variable costs for
2014:
Prepare a pro forma income statement for 2015 using the
percent-of-sales method and distinguish between fixed and variable
costs. What is the expected net income?
Intro Income statement for 2014 Line item Sales - COGS = Gross profit - SG&A - Depreciation = Operating profit - Interest = Taxable income...
just need help filling in the
blanks! thank you
OUTPUT Income Statement INPUT 2014 250,000 300,000 120,000 150,000 2013 Cash Flow 2014 Sales Cost of Good Sold Cash Depreciation Interest Expense Tax Rate SG&A Long Tem Debt Initial Equity Investment Accounts Receivable Inventory Gross Fixed Assets Accumulated Depreciation Accounts Payable Retained Eamings 2013 2014 Sales COGS NI Plus Depreciation Cash Income 20,000 36,000 8,000 40.0% 50,000 40,000 9,000 40.0% 55,000 240,000 230,000 150,000 150,000 42,000 14,500 800,000 820,000 Gross margin...
Hudson Co. reports the contribution margin income statement for 2017 HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (11,200 units at $280 each) Variable costs (11,200 units at $210 each) Contribution margin Fixed cost Pretax income $3,136,000 2,352,000 $784,000 567.000 $ 217,000 Exercise 18-18 Evaluating strategies LO C2 Assume the company is considering investing in a new machine that will increase its fixed costs by $37,500 per year and decrease its variable costs by $10...
The contribution margin income statement of Sweet Pea Donuts for August 2018 follows: (Click the icon to view the contribution margin income statement.) Sweet Pea sells four dozen plain donuts for every dozen custard-filled donuts. A dozen plain donuts sells for $4.00, with total variable cost of $1.60 per dozen. A dozen custard-filled donuts sells for $8.00, with total variable cost of $3.20 per dozen. Read the requirements Requirement 1. Calculate the weighted average contribution margin. (Round all currency amounts...
I need assistance with requirements 3,4 and
5, please.
The contribution margin income statement of Unique Donuts for August 2018 follows: E: (Click the icon to view the contribution margin income statement.) Unique sells four dozen plain donuts for every dozen custard-filled donuts. A dozen plain donuts sells for $4.00, with total variable cost of $1.60 per dozen. A dozen custard-filled donuts sells for $7.00, with total variable cost of $2.80 per dozen. Read the requirements. Data Table Requirement 1....
I have no idea what I am missing. Thank you for your help in
advance!
The following Income statement and Information about changes in noncash current assets and current liabilities are reported. $1,828,eee 991, eee 837,000 SONAD COMPANY Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $245,535 Depreciation expense 44,200 Rent expense 49,600 Amortization expenses-Patents 4,200 Utilities expense 18,125 Gain on sale of equipment Net income 361,660 475,340 6,200...
value: 2.40 points Hudson Co. reports the contribution margin income statement for 2015. Assume sales remain constant at 10,100 units. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2015 Sales (10,100 units at $249 each) Variable costs (10,100 units at $200 each) $ 2,514,900 2,020,000 $ Contribution margin Fixed costs 494,900 328,500 Pretax income $ 166,400 Assume the company is considering investing in a new machine that will increase its fixed costs by $43,000 per year and...
is this enough?
URLUuuy PIUDICT V2 Rand Co., a new startup business, is preparing budgets for the first quarter 2020 ending March 31. • Budgeted sales of the company's only product for the next five months are: January February March April May 9,100 units 5,000 units 6,600 units 4,100 units 4,600 units • The selling price is $85 per unit. Prepare the following elements of the master budget for this problem: 1. Sales budget (with a schedule of expected cash...
3. Income statement
The income statement, also known as the profit and loss
(P&L) statement, provides a snapshot of the financial
performance of a company during a specified period of time. It
reports a firm’s gross income, expenses, net income, and the income
that is available for distribution to its preferred and common
shareholders.
The income statement is prepared using the generally accepted
accounting principles (GAAP) that match the firm’s revenues and
expenses to the period in which they were...
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