Business, 19.09.2019 00:00 bertha4082
Suppose that in 2014 sales increase by 10% over 2013 sales and that 2014 dividends will increase to $112,000. forecast the financial statements using the forecasted financial statement method. assume the firm operated at full capacity in 2013. use an interest rate of 13%, and assume that any new debt will be added at the end of the year (so forecast the interest expense based on the debt balance at the beginning of the year). cash does not earn any interest income. assume that the all new debt will be in the form of a line of credit. i put the solution up so it can be used as a reference to solve the problems for the questions that i have below. operating cost 3,607,692 (what was multiplied or divided by to get this answer)ebit 352,308 (what was multiplied or divided by to get this answer)debt 20,280 (what was multiplied or divided by to get this answer)taxes 132,811 (what was multiplied or divided by to get this answer)addition to re 87,217 (what was multiplied or divided by to get this answer)income statement for december 31, 2013sales $3,600,000operating costs 3,279,720ebit $ 320,280interest 18,280pre-tax earnings $ 302,000taxes (40%) 120,800net income $ 181,200dividends $ 108,000balance sheet as of december 31, 2013cash $ 180,000 accounts payable $ 360,000receivables 360,000 notes payable 156,000inventories 720,000 line of credit 0total current assets $1,260,000 accruals 180,000fixed assets 1,440,000 total current liabilities $ 696,000common stock 1,800,000retained earnings 204,000total assets $2,700,000total liabilities and equity $2,700,000
Answers: 3
Business, 21.06.2019 20:50
Suppose the price of frozen yogurt, a substitute for ice cream, increases. what happens to equilibrium price and quantity of ice cream? a. the price and quantity of ice cream both increase b. the price and quantity of ice cream both decrease c. the price of ice cream increases and the quantity decreases d. the price of ice cream decreases and the quantity increases
Answers: 3
Business, 22.06.2019 02:50
Seattle bank’s start-up division establishes new branch banks. each branch opens with three tellers. total teller cost per branch is $96,000 per year. the three tellers combined can process up to 90,000 customer transactions per year. if a branch does not attain a volume of at least 60,000 transactions during its first year of operations, it is closed. if the demand for services exceeds 90,000 transactions, an additional teller is hired and the branch is transferred from the start-up division to regular operations. required what is the relevant range of activity for new branch banks
Answers: 2
Business, 22.06.2019 04:10
Lynch company manufactures and sells a single product. the following costs were incurred during the company’s first year of operations: variable costs per unit: manufacturing: direct materials $ 12 direct labor $ 6 variable manufacturing overhead $ 1 variable selling and administrative $ 1 fixed costs per year: fixed manufacturing overhead $ 308,000 fixed selling and administrative $ 218,000 during the year, the company produced 28,000 units and sold 15,000 units. the selling price of the company’s product is $56 per unit. required: 1. assume that the company uses absorption costing: a. compute the unit product cost. b. prepare an income statement for the year. 2. assume that the company uses variable costing: a. compute the unit product cost. b. prepare an income statement for the year.
Answers: 1
Business, 22.06.2019 05:30
Financial information that is capable of making a difference in a decision is
Answers: 3
Suppose that in 2014 sales increase by 10% over 2013 sales and that 2014 dividends will increase to...
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