1. Sales Revenue should increase by 2% in 2021; 3% in 2022 and decreased by 3% in 2023 and remains the same on 2024. 2. Cost of Sales increased to 4 576 000 in 2021 and increased by 2% for the next TWO years and increased by 1% for the last year of projection. 3. Operating Expenses will only increase in 2021 and 2024 by 2%. 4. Income Tax Rate is 30%. 2020 (ACTUAL) 2021 2022 2023 2024 SALES 9 345 255 3. 10. 17. 24. LESS: COSTS OF SALES 3 445 554 4. 11. 18. 25. GROSS PROFIT 5 899 701 5. 12. 19. 26. 13. 20. 27. LESS: OPERATING 4 140 000 6. EXPENSES 28. 21. 14. 1759 701 7. 29. NIBT 22. 15. 1. 527910.3 8. 30 LESS: INCOME TAX 16. 23. 2. 1231790.7 9.
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- How much is the VAT Payable in May? Given the following data during the 2nd quarter of 2022 Output Tax 12,000.00 Month Input Tax April May June 7,000.00 18,000.00 15,000.00 24,000.00 10,000.00 In the books, there was a debit balance of input tax amounting to 6,000 from preceding quarter. 3,000 2,000 1,0001. Sales revenues should increase by 3% in 2021: 4% in 2022 and decreased by 3% in 2023 and remains the same on 2024. 2. Cost of sales increased to 4, 000 000 in 2021 and increased by 2% for the next years and increased by 1% for the last year of projection. 3. Operating expenses will only increase in 2021 and 2023by 2%. 4. Income Tax Rate is 30% 2020 (ACTUAL) 2021 2022 9 345 255 3. 10. SALES 3 445 554 4. 11. LESS: COSTS OF SALES 5 899 701 5. 12. GROSS PROFIT 4 140 000 6. 13. LESS: OPERATING EXPENSES 1 759 701 7. 14. NIBT 1. 8. 15. LESS: INCOME TAX 2. 9. NIATThe most recent financial statements for Retro Machine, Inc., follow. Sales for 2021 are projected to grow by 25 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. RETRO MACHINE, INC. 2020 Income Statement Sales Costs $760,000 595,000 31,000 Other expenses Earnings before interest and taxes Interest paid $ 134,000 27,000 Taxable income $ 107,000 23,540 Taxes (22%) Net income $ 83,460 Dividends $25,038 Addition to retained 58,422 earnings
- What is the breakeven point in revenues for 2018 if the additional $16,500 is spent for advertising?The financial statements of Eagle Sport Supply are shown in the table below. For simplicity, "Costs" include interest. Assume that Eagle's assets are proportional to its sales. Assume a growth rate of 30% in revenue, expenses, and assets in 2020. The tax rate will remain constant. Income Statement Sales Costs Pretax income Taxes (at 40.0%) Net income 2019 Net assets $5,400 Total $3,350 1,450 $1,900 760 $1,140 Balance Sheet, Year-End 2018 $5,100 $5,400 $5,100 2019 $2,200 3,200 Debt Equity Total $5,400 6.42 x % a. Assume that the dividend payout ratio is fixed at 50% and the equity-to-asset ratio is fixed. What is the internal growth rate for 2020? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) X Answer is complete but not entirely correct. Internal growth rate 2018 $2,100 3,000 $ 5,100 b. What is the sustainable growth rate for 2020? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal…Sales are $2.6 million in 2020, $2.7 million in 2021, and $2.5 million in 2022. What is the percentage change from 2020 to 2021? What is the percentage change from 2021 to 2022? Be sure to indicate whether the percentage change is an increase or a decrease.
- The forecasts of Mojo Limited for 2023 for the only product that it manufactures are as follows: Operating expenses R700 000, Interest income R25 000 and Profit after tax R176 400. If the company tax is calculated at 30% of the pre-tax profit, how much is the expected gross profit for 2023? A. R977 000 B. R927 000 C. R954 320 O D. R904 320 M PGlobal Corp. expects sales to grow by 7% next year. Using the percent of sales method and the data provided in the given tables LOADING... , forecast: a. Costs except depreciation b. Depreciation c. Net income d. Cash e. Accounts receivable f. Inventory g. Property, plant, and equipment h. Accounts payable (Note: Interest expense will not change with a change in sales. Tax rate is 26%.) The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. Income Statement Net Sales 185.3Costs Except Depreciation -175.4EBITDA 9.9Depreciation and Amortization -1.2EBIT 8.7Interest Income (expense) -7.7Pretax Income 1Taxes (26%) -0.3Net Income 0.7 Balance Sheet Assets Cash 23.4Accounts…The financial statements of Eagle Sport Supply are shown in the table below. For simplicity, "Costs" include interest. Assume that Eagle's assets are proportional to its sales. Assume a growth rate of 30% in revenue, expenses, and assets in 2023. The tax rate will remain constant. Sales Income Statement Costs $ 2,750 1,150 Pretax income Taxes (at 30.0%) $ 1,600 480 Net income $ 1,120 2021 Balance Sheet, Year-End 2022 Net assets $ 4,800 $ 4,500 Debt Total $ 4,800 $ 4,500 Equity Total 2022 $ 1,900 2,900 2021 $1,800 2,700 $ 4,800 $4,500 a. Assume that the dividend payout ratio is fixed at 50% and the equity-to-asset ratio is fixed at two-thirds. What is the internal growth rate for 2023? b. What is the sustainable growth rate for 2023? Note: For all requirements, do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. a. Internal growth rate b. Sustainable growth rate % %
- Data are as follows: In year 2020, sales are 150,000 units with Selling price per unit of 10 and VC per unit iof 6.50 per unit. Fixed cost is 155,000 and Interest cost is 90,000. Q3. Assume that the company expects to have sales increase by 20%, what will be the resulting change in EBIT in year 2021? • 28.38% • 26.45% • 25% • 33.33%The financial statements of Eagle Sport Supply are shown in the table below. For simplicity, "Costs" include interest. Assume that Eagle's assets are proportional to its sales. Assume a growth rate of 30% in revenue, expenses, and assets in 2020. The tax rate will remain constant. Income Statement Sales Costs Pretax income Taxes (at 40.0%) Net income Net assets Total 2019 $5,400 $5,400 Internal growth rate $3,350 1,450 $1,900 760 $1,140 Balance Sheet, 2018 $5,100 Sustainable growth rate $ 5,100 Year-End % Debt Equity Total a. Assume that the dividend payout ratio is fixed at 50% and the equity-to-asset ratio is fixed. What is the internal growth rate for 2020? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) 2019 $ 2,200 3,200 $5,400 2018 $ 2,100 3,000 $ 5,100 b. What is the sustainable growth rate for 2020? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) %Data are as follows: In year 2020, sales are 150,000 units with Selling price per unit of 10 and VC per unit iof 6.50 per unit. Fixed cost is 155,000 and Interest cost is 90,000. Q3. Assume that the company expects to have sales increase by 20%, what will be the resulting change in EBIT in year 2021?(2 Points) • 28.38% • 33.33% • 25% • 26.45%