Complete the Year 2 income statement data for Cold Goose, then answer the questions that follow. Round each dollar value to the nearest whole dollar. Cold Goose Metal Works Inc. Income Statement Years Ending December 31 Net sales Fixed operating costs, except depreciation and amortization Depreciation and amortization expenses Net operating income (or EBIT) Interest Earnings before taxes (or EBT) Taxes (40%) Net Income Preferred dividends Earnings available to common stockholders (EAC) Common dividends Addition to retained earnings Year 2 (Forecasted) $ (800,000) $2,121,050 Year 1 $20,000,000 ) (14,000,000) (800,000) $5,200,000 (520,000) $4,680,000 (1,872,000) $2,808,000 (100,000) $2,708,000 (982,800) $1,725,200

The following tables contain financial statements for Dynastatics Corporation. Although the company has not been growing, it now plans to expand and will increase net fixed assets (i.e., assets net of depreciation) by $350,000 per year for the next 4 years, and it forecasts that the ratio of revenues to total assets will remain at 1.50. Annual depreciation is 20% of net fixed assets at the beginning of the year. Fixed costs are expected to remain at $86 and variable costs at 70% of revenue. The company’s policy is to pay out one-half of net income as dividends and to maintain a book debt ratio of 20% of total capital.   INCOME STATEMENT, 2019(Figures in $ thousands) Revenue       $ 2,160   Fixed costs         86   Variable costs (70% of revenue)         1,512   Depreciation         280   Interest (6% of beginning-of-year debt)         18   Taxable income         264   Taxes (at 35%)         92   Net income       $ 172   Dividends $ 86         Addition to retained…

Water and Power Co. (W&P) currently has $575,000 in total assets and sales of $1,400,000. Half of W&P’s total assets come from net fixed assets, and the rest are current assets. The firm expects sales to grow by 22% in the next year. According to the AFN equation, the amount of additional assets required to support this level of sales is . (Note: Round your answer to the nearest whole number.)   W&P was using its fixed assets at only 95% of capacity last year. How much sales could the firm have supported last year with its current level of fixed assets? (Note: Round your answer to the nearest whole number.) $1,547,368   $1,768,421   $1,473,684   $1,694,737     When you consider that W&P’s fixed assets were being underused, its target fixed assets to sales ratio should be %. (Note: Round your answer to two decimal places.)   When you consider that W&P’s fixed assets were being underused, how much fixed assets must W&P raise to…

Incremental earnings: Company will spend 4.5 million on advertising for a new product.  Ads will boost sales by 10.1 million first year and 8.1 million 2nd year plus increase other product sales by 2.2 million each year. The new product will have a gross profit margin of 33% and gross profit margin on existing products will increase by 20%. corporate tax rate is 25%. My Excel answer is below.  Am I correct? For the TOTAL GROSS PROFIT, I added the gross profit from both the new product and existing product.  Normally, I would subtract COGS from Sales It seems here it is given with the %. For TAXES, I multiplied EBIT to the 25%. For INCREMENTAL EARNINGS, I subtracted Taxes from EBIT. Incremental Earnings Forecast (in 000s) 1 2 Sales of new product 10.1 8.1 Sales of other products 2.2 2.2 Gross Profit for new product is 33% 3.33 2.67 Gross Profit for other products is 20% 0.44 0.44 Total Gross Profit 3.8 3.1 Selling, General and Administrative Expense (advertising) 4.5 0.0…