(Using common-size financial statements) The S&H Construction Company expects to have total sales next year totaling $15,400,000. In addition, the firm pays taxes at 35 percent and will owe $307,000 in interest expense. Based on last year's operations the firm's management predicts that its cost of goods sold will be 62 percent of sales and operating expenses will total 28 percent. What is your estimate the firm's net income (after taxes) for the coming year? Complete the pro-forma income statement below: (Round to the nearest dollar.) Pro-Forma Income Statement Sales $ Cost of goods sold Gross profit 2$ Operating expenses Net operating income 2$ Interest expense Earnings before taxes 2$ Тахes Net income 2$
Q: Problem 3: Straight Bonds, Semiannual ABC Corporation plans to issue pieces of 12%, 10-year, P1,000...
A: Yield to maturity (YTM) on a bond is the rate of return which investors would earn if the bond is he...
Q: Bello, Inc., has a total debt ratio of .87. a. What is its debt-equity ratio? (Do not round interm...
A: Debt ratio =(Total debt)/(Total assets)
Q: Pielago is eyeing for another company to invest her excess funds. She is interested in a publicly li...
A: Given: Year Dividend per share 2014 7.03 2015 7.05 2016 7.16 2017 7.21 2018 7.27 2019...
Q: You are to pay a bill in Meralco every month for 5 years. The accumulated amount of the payment you ...
A: Future Value with compounding other than annual With frequency of compounding in a year (m), annual...
Q: F G H Monthly Monthly Еxcess Excess return for Market Stock 1 Returns 0.09 0.03 -0.07 0.01 0.02 0.02...
A: Risk and return are two main components of investment. Beta a measure which shows the degree of risk...
Q: Nike Enterprises sells widgets for $10 a piece which cost them $6 to make. In a good year (probabili...
A: Since question involves multiple subparts , we will answer 1st sub 3 parts for you as per prescribed...
Q: Some recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, INC. Balance Sheets...
A: Average total assets = (Beginning total assets + Ending total assets)/2 = (71,047 + 98,0...
Q: You currently have $900 (Present Value) in an account that has an interest rate of 4.5% per year com...
A: Future value is the accumulated amount of a deposit along with the interest earned on it. The amount...
Q: A pharmaceutical company announces that it has received Federal Drug Administration approval for a n...
A: We know the principle of technical analysis. Market Discount everything- What information is availa...
Q: Time Value of Money You have been hired as a financial advisor to Mr Sam. He has received two offer...
A:
Q: Assume the Central Intelligence Agency's World Fact Book reported that Afghanistan had a GDP of $78....
A: We will use the concept of time value of money here. As per the concept when determining the future ...
Q: her own business. She intends to pay back the loan with a series of $2,000 payments at the beginning...
A: Loans are paid by the monthly installments that carry the payment for interest and payment for princ...
Q: The stock price of Alps Co. is $54.80. Investors require a return of 14 percent on similar stocks. I...
A: Stock price is $54.80 Required return is 14% Dividend next year is $4.05 To Find: Expected growth...
Q: Jamie McFarland has determined that the value of her liquid assets is $4,500, the value of her real ...
A: Total liabilities is the sum of total long term debt and short term debt. similarly, Total assets ar...
Q: a) Determine the price of Bond X if it has 3 years to maturity, a par-value of $2500, a coupon rate ...
A: Given, Par value of bond is $2500 Coupon rate is 5%. Yield is 9%.
Q: You want to sell four call option contracts on AA Industries stock at a strike price of $32.50 a sha...
A: Option premium is the amount that the call option writer gets when he sell the call option.
Q: On June 1, 2021, Java Company issued 10% bonás payable with face amount of P6,000,000 to yield 12%. ...
A: To Find: Market price of bond. Effective interest amortization table Journal entries for 2021 and 2...
Q: Bond J has a coupon rate of 5.8 percent. Bond K has a coupon rate of 15.8 percent. Both bonds have e...
A: Given, Bond J and Bond K with par value of $1,000. Coupon of Bond J is 5.8% and Bond K is 15.8%. Ter...
Q: Bon Chance, Inc., has an odd dividend policy. The company has just paid a dividend of $11.00 per sha...
A: Current Share Price can be calculated by adding the present values of future dividends Dividend paid...
Q: : Identify the different types of annuities, calculate the present value and future value of both an...
A: Annuities are payments are that paid periodically each period these amounts are fixed ,variable and ...
Q: Uzam company has Tk. 1,312,500 in current assets and Tk. 525,000 in current liabilities. Its invento...
A: Current ratio measures the liquidity calculated by dividing current assets by current liabilities. C...
Q: Ms. Magan Dah and her sister, Ms. Supla Dah got into the cakes and pastries business almost by accid...
A: As per the guidelines in case of multipart questions we are required to solve the first 3 subparts ...
Q: You are planning on leasing a drying oven for your production line. The oven lease terms involve an ...
A: We are here to find out the present value of 2 leasing options 1. Corporate financed 4% option 2. 2%...
Q: What is the compound amount and interest if Php 10,000 is invested at 3.6% compounded monthly for 2 ...
A: we know that, A=P(1+rn)n×t now, A= amount after time + (future value) P= principal amount (initial v...
Q: Andres Michael bought a new boat. He took out a loan for $24,320 at 4.5% interest for 2 years. He ma...
A: Given, Loan amount is $24,320. Term is 2 years, that means 24 months.
Q: how much will this collection be worth when that time comes?
A: Future Value: It represents the future worth of the present sum of money and is computed by the pro...
Q: Sonnie's payments will be deferred for 3.25 years. How much should Bonnie be willim roperty if inter...
A: The present value the future payments will be without interest the payment for principal payment and...
Q: Find the amount Amy has at the end of 8 years.
A: Amount/Future Value: It represents the worth of the present amount after over a period of years. It...
Q: For an investor who plans to purchase a bond that matures in one year, the primary concern should be...
A: Bonds are source of investment, where the investor gets the fixed coupon payment through out the mat...
Q: (a) If $5,500 is invested at 1.35% interest, find the value (in dollars) of the investment at the en...
A: Future Value: It refers to the future worth of the current amount and is computed by the product of...
Q: The following expression can be used to find the value of a constant growth stock. P0 = D0 / Ks + g
A: Stock is one of a company's securities which is issued by the company to arrange the funds. Value of...
Q: Beginning inventory consist of 800 units at P200 each. Purchases made for the period: January 18 for...
A: In FIFO method, the inventory that comes first is sold first. FIFO stands for 'First in first out'.
Q: ary Joy rery year, she decided to give her contribution of P9 000 every quarter. How much surance co...
A: The future value of money includes the principal amount deposited and interest accumulated over the ...
Q: If Treasury bills are currently paying 6.35 percent and the inflation rate is 1.6 percent, what is t...
A: The question is related to the approximate real rate and exact real rate. Bothe the rates are calcul...
Q: Which of the following statements is true regarding the optimal risky portfolio: It is designated by...
A: Optimal risky portfolio: Optimal risky portfolio is the portfolio which has balance between the risk...
Q: A European put option with an exercise price of $100 and 3 months till maturity is trading at $4 whe...
A: The exercise price of stock is $100. Maturity period is 3months Value of put option is $4 Spot pric...
Q: Courtney contributed $4,500 at the end of every 3 months, for 5 years, into a Registered Retirement ...
A: Time value of money (TVM) refers to the concept which proves that the value of money today is higher...
Q: Calculate the future value of end-of-quarter payments of $5,000 made for 5 years into an investment ...
A: The value of current payment or upcoming flow of payments at any future date when flow of payment te...
Q: Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 8.8 percent, a YT...
A: Given, Two bonds bond X and Bond Y Both have same time to maturity of 13 years.
Q: If the total sale is P125,750.00, the cost of sales is 42.25% of the total sales, and the operating ...
A: Total sales = P125,750.00 Cost of sales = 42.25% Operating expenses = P15,429.30
Q: Many financial managers and corporate officers are oftencriticized for (a) poor decisions, (b) lack ...
A: Financial managers are in charge of overseeing the finances of major corporations, government agenci...
Q: Assume the time from acceptance to maturity on a $10,000,000 banker's acceptance is 90 days. Further...
A: We can calculate the amount that the exporter pays in discounting by applying the required formula. ...
Q: You are an Assistant Analyst in a financial institution in your Country. Your company is interested ...
A: a. Calculate the expected return of the bond when the market price is $700 by using the EXCEL RATE f...
Q: How large must each annual payment be if the loan is for $30,000? Assume that the interest rate rema...
A: Given, The loan amount is $30,000. Interest rate is 6%
Q: Suppose that standard deviation of monthly changes in spot prices of live cattle is 1.2 cents per po...
A:
Q: You purchase a 8 - year bond at $ 97 per $ 100 par value that pays a 7.3 % coupon per annum . Furthe...
A: Coupon per period = (Coupon rate / No of coupon payments per year) * Par valueCoupon per period = (7...
Q: Consider a T-bill with a rate of return of 5 percent and the following risky securities. From which ...
A: Risk Seekers: Risk seekers willing to pay for taking risk for getting more profits. ---------------...
Q: Assume the $12,480 Treasury bill, 5% for 15 weeks. Calculate the effective rate of interest. (Use ca...
A: Treasury bill par value is $12,480 Interest rate is 5% Time period is 15 weeks To find: Effective r...
Q: ompanies that are owned by a group of investors, who could also be associated with the company's man...
A: As per the policy of Bartleby we are bound to give the answer of first question only. Meaning of Clo...
Q: I am trying to figure out dollar dividens per share of a company. I am using yahoo finnace. Divide...
A: A dividend is a distribution of profits by a company. The company pays dividends to its shareholders...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are expected to be 75% of sales, and depreciation is expected to be 1.5 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Berndts federal-plus-state tax rate is 40%. Berndt has no debt. a. Set up an income statement. What is Berndts expected net income? Its expected net cash flow? b. Suppose Congress changed the tax laws so that Berndts depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and to net cash flow? c. Now suppose that Congress changed the tax laws such that, instead of doubling Berndts depreciation, it was reduced by 50%. How would profit and net cash flow be affected? d. If this were your company, would you prefer Congress to cause your depreciation expense to be doubled or halved? Why?(Using common-size financial statements) The S&H Construction Company expects to have total sales next year totaling $14,800,000. In addition, the firm pays taxes at 35 percent and will owe $307,000 in interest expense. Based on last year's operations the firm's management predicts that its cost of goods sold will be 62 percent of sales and operating expenses will total 33 percent. What is your estimate of the firm's net income (after taxes) for the coming year? Pro-Forma Income Statement Sales Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Earnings before taxes Taxes Net income $ $ $ $ 14800000 (9424000) 5376000 (4884000) (307000) (5180000)(Using common-size financial statements) The S&H Construction Company expects to have total sales next year totaling $14,600,000. In addition, the firm pays taxes at 35 percent and will owe $294,000 in interest expense. Based on last year's operations the firm's management predicts that its cost of goods sold will be 63 percent of sales and operating expenses will total 27 percent. What is your estimate of the firm's net income (after taxes) for the coming year? Complete the pro-forma income statement below: (Round to the nearest dollar.) Pro-Forma Income Statement Sales Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Earnings before taxes Taxes Net income $ $ $ $ $ C
- The S&H construction company expects to have total sales next year totaling $15,300. In addition, the firm pays taxes at 35 percent and will owe $280,000 in interest expense. Based on last year’s operations the firm’s management predicts that its cost of goods sold will be 57 percent of sales and operating expenses will total 32 percent. What is your estimate of firm’s net income after taxes for the coming year? Complete the forma income statement below Round to the nearest dollar Pro-forma income statement Sales Cost of goods sold Gross profit Operating expenses Net operating income Interest expenses Earnings before taxes Taxes Net income(Using common-size financial statements) The S&H Construction Company expects to have total sales next year totaling $15,300,000. In addition, the firm pays taxes at 35 percent and will owe $283,000 in interest expense. Based on last year's operations the firm's management predicts that its cost of goods sold will be 55 percent of sales and operating expenses will total 33 percent. What is your estimate of the firm's net income (after taxes) for the coming year? Complete the pro-forma income statement below: (Round to the nearest dollar.) Pro-Forma Income Statement Sales Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Earnings before taxes Taxes Net income $ $ $ $ $The S&H construction company expects to have total sales next year totaling $14,500,00 In addition, the firm pays taxes at 35 percent and will owe $318,000 in interest expenses. Based on last year’s operations the firm’s management predicts that its cost of goods sold will be 58 percent of sales and operating expenses will total 32 percent. What is your estimate of the firm’s net income after taxes for the coming year ? Complete the pro-forma income statement below Round to the nearest dollar Pro-forma income statement Sales Cost of goods sold Gross profit Operating expenses Net operating expenses Interested expenses Earnings before taxes Taxes Net income
- The Optical Scam Company has forecast a sales growth rate of 20 percent for next year. Current assets, fixed assets, and short-term debt are proportional to sales. The current financial statements are shown here: Sales Costs Taxable income Taxes Net income Dividends Addition to retained earnings Current assets Fixed assets Total assets Assets Current assets Fixed assets INCOME STATEMENT Total assets $ 7,230,000 18,390,000 $ 1,149,982 1,724,853 Assets b-2. External financing needed c. Sustainable growth rate $ 25,620,000 a. Calculate the external funds needed for next year using the equation from the chapter. Note: Do not round intermediate calculations. External financing needed b-1. Prepare the firm's pro forma balance sheet for next year. Note: Do not round intermediate calculations. BALANCE SHEET Short-term debt Long-tern debt Common stock Accumulated retained earnings $ 30,500,000 26,077,300 $ 4,422,700 1,547,945 $ 2,874,755 Liabilities and Equity Total equity Total liabilities and…pharoah marble company has total assets of 13350000 sales of 18690000 and net income of 4672500. management expects sales to grow by 25% next year. all assets and costs (including taxes) vary directly with sales, and management expects to maintain a payout ratio of 65%. Calculate Pharoah's EFN.(Financial forecasting—percent of sales) Next year’s sales for Cumberland Mfg. are expected to be $22 million. Current sales are $18 million, based on current assets of $5 million and fixed assets of $5 million. The firm’s net profit margin is 5 percent after taxes. Cumberland estimates that current assets will rise in direct proportion to the increase in sales but that its fixed assets will increase by only $150,000. Currently, Cumberland has $2 million in accounts payable (which vary directly with sales), $1 million in long-term debt (due in 10 years), and common equity (including $4 million in retained earnings) totaling $6.5 million. Cumberland plans to pay $750,000 in common stock dividends next year. Required: What are Cumberland’s total financing needs (that is, total assets) for the coming year? Given the firm’s projections and dividend payment plans, what are its discretionary financing needs? Based on your projections, and assuming that the $150,000 expansion in fixed assets…
- The Optical scam company has forecast a sales growth of 20 percent for next year. The current financial statements are shown below: What is pro forma balance sheet for next year? Sales $ 31,600,000 Costs 26,675,500 Taxable income $ 4,924,500 Taxes 1,723,575 Net income $ 3,200,925 Dividends $ 1,280,370 Addition to retained earnings 1,920,555 Balance Sheet Assets Liabilities and Owners' Equity Current assets $ 7,320,000 Accounts payable $ 5,688,000 Long-term debt 6,636,000 Fixed assets 20,172,000 Common stock $ 1,594,000 Accumulated retained earnings 13,574,000 Total equity $ 15,168,000 Total assets $ 27,492,000 Total liabilities and equityYou have the following data for a company. What is the return on assets (ROA)? Return on equity = 15%; Earnings before taxes = $150,000; Total asset turnover = 1.8; Profit margin = 10.5%; Tax rate = 30%.Finlay Corporation had sales this year of $3,270 million, and sales are expected to grow by 20 percent next year. Next year the company expects cost of goods sold to be 60 percent of sales, selling expenses to be $40 million per month, depreciation to be $10 million per month, and interest expense to be $24 million per month. Taxes are computed at 21 percent. What is Finlay's expected net income next year?