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Calculate the Terminal Value using the Perpetual growth Method
Cost of Capital using WACC = 11.02%
Terminal growth rate = 3%
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- You are given the following information for Smashville, Inc. Cost of goods sold: Investment income: Net sales: Operating expense: Interest expense: Dividends: Tax rate: Current liabilities: Cash: Long-term debt: Other assets: Fixed assets: Other liabilities: Investments: Operating assets: Gross margin Operating margin Return on assets Return on equity $174,000 $ 1,400 $379,000 $ 86,000 $ 7,400 8,000 $ % % % % 40% $ 21,000 $ 21,000 $ 46,000 $ 38,000 $130,000 Calculate the gross margin, the operating margin, return on assets, and return on equity. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) $ 3,000 $ 34,000 $ 64,000HEATLEY INTERNATIONAL INCOME STATEMENT FY 201X REVENUES COST OF GOODS SOLD Cost of Goods Sold So GROSS PROFIT (GROSS MARGIN) So OPERATING EXPENSES Selling Expenses Total Selling Expenses $0 General Expenses Total General Expenses $0 Total Operating Expenses $0 NET PROFIT (INCOME) BEFORE TAXES $0 Less: Income Tax Expenses (25%) $0 NET PROFIT (INCOME) AFTER TAXES $0 Introduction to Business (Carcioppolo) Name: . WHEATLEY INTERNATIONAL BALANCE SHEET December 31, 201X ASSETS Current Assets Total Current Assets $0 Fixed Assets Total Fixed Assets So Other Assets Total Other Assets $0 TOTAL ASSETS $0 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Total Current Liabilities $0 Long-Term Liabilities Total Long- Term Liabilities $0 Total Liabilities $0 Owner's Equity Total Owners' Equity $0 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $oProblem 7 (Basic Earning Power) Oriental Manufacturing recently reported the following information: Net income is P600,000, ROA is 8%, and Interest expense is P225,000. Oriental Manufacturing tax rate is 35 %. What is its basic earnings power (BEP) ratio?
- Sales Net income (after taxes) Assets Medical Supplies $ 20,400,000 Medical Supplies Heavy Machinery Electronics 2,190,000 8,590,000 a-1. What is the return on sales for each subsidiary? Note: Input your answers as a percent rounded to 2 decimal places. Return on Sales % % % Heavy Machinery $ 5,600,000 270,000 8,360,000 Electronics $ 4,920,000 322,000 3,330,000COMPUTATIONS: Given the following data for SUPERCALIFRAGILISTICEXPIALIDOCIOUS COMPANY for the year ended December 31, 200X: Cost of sales Distribution costs Administrative expenses PhP 5,400,000 1,350,000 1,000,000 200,000 Other income Php 1,400,000 320,000 9,000,000 50,000 Other expenses Net sales Finance costs Prepaid expenses Tax rate is at 30% 11..Gross income а. 3,600,000 b. 5,000,000 с. 2,130,000 d. 1,491,000 12. Total income а. 3,600,000 b. 5,000,000 с. 2,130,000 d. 1,491,000 13. Total expenses a. 1,320,000 b. 2,350,000 c. 2,870,000 d. 2,670,000 14. Income before tax a. 3,600,000 b. 1,491,000 c. 7,530,000 d. 2,130,000a. Prepare a common-sized income statement comparing the results of operations for Dawg Electronics Company with the industry average. If required, round percentages to one decimal place. Dawg Electronics Company Common-Sized Income Statement Dawg Electronics Dawg Electronics Electronics Industry Company Amount Company Percent Average Sales $3,750,000 100.0 % 100.0% Cost of goods sold (2,062,500) 550.0 % (61.0)% Gross profit $1,687,500 45.0 % 39.0% Selling expenses $(1,125,000) 0.3 % (23.0)% Administrative expenses (262,500) 0.7 % (10.0)% Total operating expenses $(1,387,500) 37.0 % (33.0)% Operating income $300,000 8.0 % 6.0% Other revenue and expense: Other revenue 15,000 0.4 % 3.0% Other expense (3,750) 0.1 % (1.0)% Income before income tax $311,250 8.3 % 8.0% Income tax expense (93,750) 25 % (2.5)% Net income $217,500 5.8 % 5.5%
- Please answer very fast then i ll upvote Calculate EBIT. Revenue 1,061,751.0 Cost of sales 690,135.0 Selling, general and administration 53,087.0 Other income 11,796.0 Operating income 330,325.0 Interest expense 19,874.0 Profit before tax 310,451.0 Tax expense 46,500.0 Net income 263,951.0 The footnotes mention the following: Cost of sales includes inventory write off costs 39,677.0 Cost of sales includes distribution costs 120,458.0 SG&A includes corporate restructuring expenses 15,570.0 Responses 385,572.0 275,078.0 330,325.0 506,030.0Ratio of Current Assets $875,000 to Current Liabilities $350,000 2.5:1. The firm wants to maintain Current Ratio of 2:1 by purchasing goods on credit. Compute amount of goods that should be purchased on Credit.Sales Cost of goods sold Gross profit Fixed charges (other than interest) Income before interest and taxes Interest Income before taxes Taxes (35%) Income after taxes. LANCASTER CORPORATION a. What is the times-interest-earned ratio? Note: Round your answer to 2 decimal places. Times interest earned Fixed charge coverage times b. What would be the fixed-charge-coverage ratio? Note: Round your answer to 2 decimal places. times $ 259,000 209,000 $ 50,000 24,500 $ 25,500 19,000 $ 6,500 2,275 $ 4,225
- Ivanhoe Company operates a small factory in which it manufactures two products: C and D. Production and sales results for last year were as follows. Units sold Unit selling price Unit variable costs Unit fixed costs C 8,900 19,500 $93 $77 52 D 21 40 21 For purposes of simplicity, the firm averages total fixed costs over the total number of units of C and D produced and sold. The research department has developed a new product (E) as a replacement for product D. Market studies show that Ivanhoe Company could sell 11,700 units of E next year at a price of $113; unit variable costs of E are $42. The introduction of product E will lead to a 12% increase in demand for product C and discontinuation of product D. If the company does not introduce the new product, it expects next year's results to be the same as last year's.Sales COGS Gross profit G&A expenses Sales & Marketing expenses Depreciation Operating income Interest Income Before taxes Income taxes Net income $575,000 $ 1,600,000 $200,000 $ 50,000 $ 100,000 30% $ 700,000 1: Calculate Sales. 2. Calculate Income before taxes. Taxes are 30%, so you know the Net Income (Y) is a percent of "Income before taxes" (X). 3. Calculate the Income tax figure. 4. Calculate Operating Income. 5. Calculate Sales & marketing.Prepare a comparative income statement for 20X2 and 20X1 using vertical analysis, and| Problem 2 VERTICAL ANALYSIS. The Lyons Corporation reported the following income stateme data: 20X2 20X1 Net sales $400.000 $250.000 Cost of goods sold $280.000 S160.000 Operating expenses S75.000 $56.000 Requirement: Prepare a comparative income statement for 20X2 and 20X1 using vertical analysis, ana evaluate the results.