During 2024, its first year of operations, Hollis Industries recorded sales of $11,300,000 and experienced returns of $900,000. Cost of Hoods sold industries rep $7,910,000 (70% of sales). The company estimates that 9% of all sales will be returned. How much net revenue will be reported?
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- During 2024, its first year of operations, Hollis Industries recorded sales of $11,800,000 and experienced returns of $750,000. Cost of goods sold totaled $8,850,000 (75% of sales). The company estimates that 8% of all sales will be returned. How much net revenue will Hollis Industries report at the end of its first year of operations? Net revenue:MBI Incorporated had sales of $35 million for fiscal 2022. The company's gross profit ratio for that year was 26%. Required: a. Calculate the gross profit and cost of goods sold for MBI for fiscal 2022. b. Assume that a new product is developed and that it will cost $469 to manufacture. Calculate the selling price that must be set for this new product if its gross profit ratio is to be the same as the average achieved for all products for fiscal 2022. c. From a management viewpoint, it could use the estimated selling price as a "target" in conducting marketing research studies to assess its ultimate prospects for success at this price. Complete this question by entering your answers in the tabs below. Required A Required B Required C From a management viewpoint, it could use the estimated selling price as a "target" in conducting marketing research studies to assess its ultimate prospects for success at this price.At year-end 2020, RWD Inc.’s total assets were $1.2 million and its accounts payable were $375,000. Sales, which in 2020 were $2.5 million, are expected to increase by 25% in 2021. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. RWD typically uses no current liabilities other than accounts payable. Its profit margin on sales is 6%, and 40% of earnings will be paid out as dividends. Determine the amount of AFN for year 2021. Calculate earnings per share (EPS) for CVN and TPO for year 2020 and each of the next 6 years if CVNacquires TPO at a ratio of exchange of 1.3. Describe the initial effect and long run effect on EPS of CVN and TPO. Does merger look beneficial forCVN and TPO? Why or why not?
- At year-end 2020, RWD Inc.’s total assets were $1.2 million and its accounts payable were $375,000. Sales, which in 2020 were $2.5 million, are expected to increase by 25% in 2021. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. RWD typically uses no current liabilities other than accounts payable. Its profit margin on sales is 6%, and 40% of earnings will be paid out as dividends. Determine the amount of AFN for year 2021.For the year ended December 31, 2022, Settles Incorporated earned an ROI of 10.5%. Sales for the year were $9 million, and average asset turnover was 2.1. Average stockholders' equity was $2.8 million. Required: Calculate Settles Incorporated's margin and net income. Note: Round "Margin" answer to 1 decimal place. Enter the net income answer in dollars, i.e., $5 million should be entered as 5,000,000. Calculate Settles Incorporated's return on equity. Note: Round your answer to 1 decimal place.For the year ended December 31, 2019, Settles Inc. earned an ROI of 9.6%. Sales for the year were $16 million, and average asset turnover was 2.4. Average stockholders' equity was $3.2 million.Required: Calculate Settles Inc.'s margin and net income. (Round "Margin" answer to 1 decimal place. Enter the net income answer in dollars, i.e., $5 million should be entered as 5,000,000.) Calculate Settles Inc.'s return on equity. (Round your answer to 1 decimal place.)
- The Birch Tree Service company had a record year in 2019, reporting revenues of $700,000 and a profit of 23%. The CEO feels sure the company’s success will continue. What is the lowest annual revenue growth rate, rounded to the nearest 1%, that would yield a total profit of at least $2,000,000 for the years 2019–2025?Paladin Furnishings generated $4 million in sales during 2021, and its year-end total assets were $2.8 million. Also, at year-end 2021, current liabilities were $500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $100,000 of accrued liabilities. Looking ahead to 2022, the company estimates that its assets must increase by $0.70 for every $1.00 increase in sales. Paladin's profit margin is 6%, and its retention ratio is 60%. How large of a sales increase can the company achieve without having to raise funds externally? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Do not round intermediate calculations. Round your answer to the nearest cent. $Company X reports $200,000 in sales of Widgets in 2019. The Costs of Goods sold for these Widgets is $90,000. All other operating expenses (SG&A, R&D, Depreciation, Other, etc.) are $50,000. Which of the following is the correct representation of the profitability ratios: Gross Profit Margin 45%, Operating Margin 30%. Gross Profit Margin 55%, Operating Margin 30%. Gross Profit Margin 45%, Operating Margin 20%. Gross Profit Margin 55%, Operating Margin 20%.
- 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 incomeThe 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 incomeFor the year ended December 31, 2022, Settles Incorporated earned an ROI of 7.2%. Sales for the year were $11 million, and average asset turnover was 1.8. Average stockholders' equity was $3.1 million. Required: a. Calculate Settles Incorporated's margin and net income. Note: Round "Margin" answer to 1 decimal place. Enter the net income answer in dollars, i.e., $5 million should be entered as 5,000,000. b. Calculate Settles Incorporated's return on equity. Note: Round your answer to 1 decimal place. a. Margin a. Net income b. Return on equity %