Problem 17: Income Statement MARK Inc. is engaged in the business of manufacturing basket balls. The company employs actual costing system. The company uses a single account for direct and indirect materials. The company provided the following data for the year ended December 31, 2016: Gross sales Sales returns Gross purchases Purchase returns, allowance and discount Freight in Total costs of factory labor Depreciation of factory assets Expired insurance on factory assets Utilities expense on factory Total administrative expenses Total marketing expenses 9,500,000 500,000 1,000,000 200,000 400,000 1,000,000 300,000 100,000 500,000 2,000,000 3,000,000 Inventories are as follows: January 1 100,000 December 31 300,000 200,000 600,000 Raw materials Work in process Finished goods ? 500,000 The following additional data are provided: 1. The net profit ratio of the company before income tax for the year ended December 31, 2016 was 10% of net sales. 2. The direct labor cost for the year was four times the cost of indirect labor. 3. The cost of indirect materials used was P100,000.

Calculate the Contribution Margin Ratio: Sales 2,000,000 Rent 500,000. Depreciation 200,000. Variable COGS 60,000 Fixed COGS 35,000.

Based on the pro - forma income statement, please estimate OCF and complete the tables. Sales 125,000 Variable costs -29, 000 Fixed costs -30,000 Depreciation -12,800 EBIT 53, 200 Tax -18, 620 NI 34, 580 Enter your final answers as whole numbers without using 1000 separators. Use a " -" sign for cash costs, expenses, cash outflows. (1) Starting from EBIT EBIT + Depreciation - Tax OCF? = OCF What is EBIT? What is Depreciation? What is Tax? What is

Checking account $250 Savings account $10,000 Cash from graduation gifts $500 Brokerage account $1,000 Monthly salary $6,000 Estimated annual taxes $12,000 Credit card balance (all due this year) $1,500 Credit card minimum payment due $125 Student loan total (due within 7 years) $25,000 Student loan monthly payment $300 Monthly rent (1 year contract required contract) $2,200 Entertainment monthly $300 Monthly internet bill (1 year required contract) $200 Coffee monthly $200 Household items (at market value -- computer, $4,000 furniture, etc.)

2. From the following details find out (a) Profit volume ratio, (b) BEP, (c) Margin of safety. SR 250,000 Fixed Costs Sales SR 50,000 Total Costs Solution: SR 150,000 Net Profit SR 50,000

Solve following 1) Units sold 10000 Variable Expenses $0.07Million C.M.P.U $13 NI $0.012Million Sales? Fixed Expenses? 2) Variable Expenses 0.4 Fixed Expenses $0.13Million NI $0.02Million Sales? С.М. Total? 3) Sales $0.6Million Variable Expenses 0.7 NI ($0.005Million) С.М. Total? Fixed Expenses?

Calculating Break-Even In each of the following cases, find the unknown variable.Ignore taxes. Accounting Break-Even Unit Price Unit Variable Cost Fixed Costs Depreciation 95,800  $           42  $                    30  $          820.000 ? 143,806 ? 64 2,750,000  $     1.150.000 7,835 97 ? 245,000 105,000