None A proposed new investment has projected sales of $522,000. Variable costs are 42percent of sales, and fixed costs are $127,500; depreciation is $49,250. Prepare a proforma income statement assuming a tax rate of 22 percent. What is the projected netincome? (Input all amounts as positive values. Do not round intermediatecalculations.)SalesVariable costsFixed costsDepreciationEBTTaxesNet income

Answered: Image /qna-images/answer/84423157-43f0-42c2-bea3-c55636e5bc2c.jpg

Answered: A proposed new investment has projected…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Use AstroTurf Company's income statement below to answer the following questions.Operating costs (excl. depreciations & amortization): $4.5mDepreciation and amortization: $1.5mInterest: $0.7mNet Income: $2.8mTax Rate: 35% What level of sales would generate a net income of $4.2m for the following year, knowing that operating costs (excl. depreciation and amortization) will increase by 7.5%, and given a 35% tax rate. Provide a step-by-step explanation for how you arrived at your above solution as though you were teaching a student to solve this type of problem.*
Calculate the residual income with the following data: Controllable margin $202,596 Minimum Rate of Return 11% Average Operating Assets $3,092,235 Round to the nearest whole dollar, no decimal places. Note: Controllable margin is the same as net income for a segment with control over the costs. Minimum rate of return is the same as the cost of capital.
Use AstroTurf Company's income statement below to answer the following questions. Operating costs (excl. depreciations & amortization): $4.5mDepreciation and amortization: $1.5mInterest: $0.7mNet Income: $2.8mTax Rate: 35%1. Calculate AstroTurf’s EBITDA. Input your final answer here : Explanation: Provide a step-by-step explanation for how you arrived at your above solution as though you were teaching a student to solve this type of problem. Provide a clear explanation, showing any steps or processes used to reach the answer. What level of sales would generate a net income of $4.2m for the following year, knowing that operating costs (excl. depreciation and amortization) will increase by 7.5%, and given a 35% tax rate. Explanation: Provide a step-by-step explanation for how you arrived at your solution as though you were teaching a student to solve this type of problem.
Requirement 1. If SnowDreams cannot reduce its costs, what profit will it earn? State your answer in dollars and as a percent of assets. Will investors be happy with the profit level? Complete the following table to calculate SnowDreams' projected income. Revenue at market price Less: Total costs Operating income
For a certain investment project, the net present worth can be expressed as functions of sales price (X) and variable production cost Y of PW= 12,550 (2X - Y) - 8000. The base values for X and Y arc $25 and $15, respectively. If the sales price is increased 15% over the base price, how much change in NPW can be expected?(a) 10% (b) 20% (c) 13.68% (d) 21.82%
For the four revenue alternatives below, use the ROR method results to answer the question below Alternative A B с D Initial Investment, $ -60,000 -90,000 -140,000 -190,000 Alternative D Overall ROR, Ai*% When Compared with Alternative ¡*% A B с 11.7 22.2 17.9 15.8 43.3 22.5 17.8 10.0 10.0 Problem 08.034.c- Choose from more than two alternatives based on incremental ROR analysis ✓should be selected. 10.0 Which one should be selected if the MARR is 10% per year and the alternatives are mutually exclusive?
Using the following data, estimate the new Return on Investment if there is a 11% decrease in variable and fixed costs- with average operating assets as the base. Sales $3,634,424 Contribution margin Controllable fixed costs Average operating assets 49% 278,080 $5,083,234 Round to two decimal places. Be sure to enter the answer as a percentage but do not include the *% sign.
> If your explicit total cost is $50 M (accounting costs) and $60 M economic costs, based on the token increase, are you now generating enough revenue to cover your operating costs?
You are analyzing a project and have developed the following estimates. The depreciation is $47,900 a year and the tax rate is 21 percent. What is the worst-case operating cash flow? Unit sales Sales price per unit Variable cost per unit Fixed costs -$2,545 $11,145 $88,855 $27,556 O $63,937 Base-Case Lower Bound Upper Bound 9,800 12,800 $34 $24 $ 9,200 11,300 $ 39 $25 $ 9,700 $44 $26 $ 10,200
Using the following data, estimate the new Return on Investment if there is a 11% increase in sales - with average operating assets as the base. Sales $3,838,419 Contribution margin Controllable fixed costs Average operating assets 42% 368,503 $5,166,749 Round to two decimal places. Be sure to enter the answer as a percentage but do not include the % sign.
Using the following data, estimate the new Return on Investment if there is a 11% decrease in the average operating assets - with the new average operating assets as the base. Sales $2,565,862 Contribution margin 48% Controllable fixed costs 293,294 Average operating assets $4,671,197 Round to two decimal places. Be sure to enter the answer as a percentage but do not include the % sign.
Calculate the residual income with the following data: • Controllable margin $392,413 • Minimum Rate of Return 13% • Average Operating Assets $2,026,701 Round to the nearest whole dollar, no decimal places. Note: Controllable margin is the same as net income for a segment with control over the costs. Minimum rate of return is the same as the cost of capital.

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