You are given the following information for Mobility Research,
Inc. (MRI).
| Sales | $200,000 |
| Costs | $105,000 |
| SG&A | $20,000 |
| Interest | $19,000 |
| Dividend paid | $7,000 |
| Retained Earnings Added | $19,000 |
| Total Assets | $85,000 |
| Equity | $45,000 |
| Tax Rate | 35% |
How
much was the depreciation charge for MRI? (Hint: Prepare the income
statement. You will have to work backwards to find the missing
data.)
| A. |
$3,769 |
|
| B. |
$7,846 |
|
| C. |
$20,077 |
|
| D. |
$16,000 |
|
| E. |
$11,923 |
|
| F. |
$1,231 |
| Adjustment | Particulars | Amount in $ | ||||
| Retained earnings | 19,000.00 | |||||
| Add | Dividend | 7,000.00 | ||||
| Net profir after tax | 26,000.00 | |||||
| Add | Tax | 14,000.00 | (40000-26000) | |||
| Net profir before tax | 40,000.00 | (26000/65%) | ||||
| Add | Costs | 105,000.00 | ||||
| Add | SG&A | 20,000.00 | ||||
| Add | Interests | 19,000.00 | ||||
| Add | depreciation | 16,000.00 | (200000-40000-105000-20000-19000) | |||
| Total | Sales | 200,000.00 | ||||
So the correct answer is option D i.e. $16000
You are given the following information for Mobility Research, Inc. (MRI). Sales $200,000 Costs $105,000 SG&A...
Use the following information for Alpha-Beta, Inc. (ABI) for this question. Sales $100,000 Costs $55,000 Depreciation $6,000 Dividend paid $10,000 Retained Earnings Added $14,500 Total Assets $85,000 Equity $45,000 Selling, General and Administrative costs $0 Tax Rate 35% If the profit margin, total asset turnover, and dividend payout ratios for ABI remain unchanged, what is the internal growth rate it can achieve during the following year? 25.00% 21.86% 20.57% 19.72% 26.87% 23.64%
Use the following information for Alpha-Beta, Inc. (ABI) for this question. Sales $100,000 Costs $55,000 Depreciation $6,000 Dividend paid $10,000 Retained Earnings Added $14,500 Total Assets $85,000 Equity $45,000 Selling, General and Administrative costs $0 Tax Rate 35% If ABI sales grow at the internal growth rate during the following year, what will be the Total Debt Ratio at the end of the year? 39.0% 37.1% 39.3% 38.1% 37.6% 38.6%