(Related to Checkpoint 4.3) (Analyzing Profitability) In 2016, the Allen Corporation had sales of $69 million, total assets of S47 million, and total liabilities of $19 million. The interest rate on the company's debt is 5.6 percent,and its tax rate is 35 percent. The operating profit margin is 12 percent.a. Compute the firm's 2016 net operating income and net income.b. Calculate the firm's operating return on assets and return on equity. (Hint: You can assume that interest must be paid on all of the firm's liabilities.)a. Compute the firm's 2016 net operating income and net income.The firm's 2016 net operating income is $ 8.28 million. (Round to two decimal places.)The firm's 2016 net income is $ million. (Round to two decimal places.)Help me solve thisView an exampleGet more help -Clear allCheck answer

The question is related to the Ratio Analysis. The details are given. The Operating profit margin is…

Answered: Related to Checkpoint 4.3) (Analyzing…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Sage Hill Inc. had the following balance sheet at December 31, 2016. SAGE HILL INC.BALANCE SHEETDECEMBER 31, 2016 Cash $ 9,600 Accounts payable $ 14,500 Accounts receivable 14,000 Bonds payable 8,800 Investments 15,500 Common stock 36,900 Plant assets (net) 35,500 Retained earnings 32,300 Land 17,900 $ 92,500 $ 92,500 During 2017, the following occurred. 1. Net income was $ 23,700. 2. Depreciation expense was $ 8,100. 3. Sage Hill liquidated its investment portfolio (comprised of available-for-sale investments), realizing a $ 3,200 loss. 4. Sage Hill issued $ 20,800 of common stock at par. 5. Dividends of $ 8,200 were declared and paid to stockholders. 6. Accounts receivable and accounts payable at December 31, 2017 were $ 15,800 and $ 13,900, respectively. 7. Sage Hill obtained $ 8,200in plant assets in exchange for issuing bonds. 8. Sage Hill purchased additional plant assets for $…
The following data were taken from the financial statements of Loveseth Inc. for the current fiscal year. Property, plant, and equipment (net) $1,826,200 Liabilities: Current liabilities $160,000 Note payable, 6%, due in 15 years 794,000 Total liabilities $954,000 Stockholders' equity: Preferred $2 stock, $100 par (no change during year) $715,500 Common stock, $10 par (no change during year) 715,500 Retained earnings: Balance, beginning of year $764,000 Net income 359,000 $1,123,000 Preferred dividends $14,310 Common dividends 154,690 169,000 Balance, end of year 954,000 Total stockholders' equity $2,385,000 Sales $16,603,050 Interest expense $47,640 Assuming that total assets were $3,172,000 at the beginning of the current fiscal year, determine the following: When required, round to one decimal place. a. Ratio of fixed assets to long-term liabilities b. Ratio of liabilities to stockholders' equity c. Asset turnover d. Return on total assets e. Return on stockholders' equity % f.…
Multiple choice: 1. You own a business. Your business is engaged in buying goods at a wholesale price and reselling them at retail prices on Facebook. Your business is a A. service business B. manufacturing business C. merchandising business. D. monkey business 2. Decreases the proprietorship A. Additional investment B. Service income C. Rent expense D. Initial investment
11. An entity's integrated report failed in its predicting the 3rd year's financial loss. What could have gone wrong? Why?
There are so many avenues through which the concepts of strategic management could be applied in real life. These include; the development of a strategic plan, development of a business plan, development of business case reports, and development of stakeholder engagement plans among others. One key task that is required by the strategist to perform in developing any of the aforementioned documents is the “design of a business model” for the business in question.Required:a. With reference to the business model canvas (as discussed in class), illustrate how the nine (9) elements interact in ascertaining how a business can sustainably generate revenues.
Cash flow statements examine the net changes in assets, liabilities, and equities of a firm and are a good indicator of …. Question 1 options: A) industry performance B) management performance C) how funds are being used D) what revenue streams are coming into the firm E) B, C, and D are correct
a. With reference to the business model canvas, illustrate how the elements interact in ascertaining how a business can sustainably generate revenues.
$ To the Internal Revenue Service (IRS), the reasonableness of total itemized deductions depends on the taxpayer's adjusted gross income. Large deductions, which include charity and medical deductions, are more reasonable for taxpayers with large adjusted gross incomes. If a taxpayer claims larger than average itemized deductions for a given level of income, the chances of an IRS audit are increased. Data (in thousands of dollars) on adjusted gross income and the average or reasonable amount of itemized deductions follow. Adjusted Gross Income Itemized Deductions ($1,000s) 22 ($1,000s) 9.6 27 9.6 32 10.1 48 11.1 65 11.5 85 19.7 120 25.5 (a) Develop a scatter diagram for these data with adjusted gross income as the independent variable. 30- 25 20 15 Itemized Deductions ($1,000s) 10 5- 0 20 40 60 80 100 120 140 Adjusted Gross Income ($1,000s) thousand Itemized Deductions ($1,000s) 30 25 20 15 10 · . 5 0 20 40 60 80 100 120 140 Adjusted Gross Income ($1,000s) Itemized Deductions ($1,000s)…
CVP Analysis; Commissions; Ethics Lionel Corporation manufactures pharmaceutical products sold through a network of sales agents in the United States and Canada. The agents are currently paid an 18% commission on sales; that percentage was used when Lionel prepared the following budgeted income statement for the fiscal year ending June 30, 2019: Lionel Corporation Budgeted Income Statement For the Year Ending June 30, 2019 ($000 omitted) Sales $28,500 Cost of goods sold Variable $12,825 Fixed 3,500 16,325 Gross profit $12,175 Selling and administrative costs Commissions $ 5,130 Fixed advertising cost 800 Fixed administrative cost 2,150 8,080 Operating income $ 4,095 Fixed interest cost 705 Income before income taxes $ 3,390 Income taxes (30%) 1,017 Net income $ 2,373 Since the completion of the income statement, Lionel has learned that its sales agents are requiring a 5% increase in their commission rate (to 23%) for the upcoming year. As a result, Lionel’s president has…
To find the net present values of future cash flows for six different discounted rate of interest, use: a. Data Table b. Goal Seek c. None of these d. Scenario manager
Consider the following information: Economy Recession Normal Boom Probability of State of Economy .23 .58 .19 Rate of Return if State Occurs Stock B a. Expected return of A Expected return of B b. Standard deviation of A Standard deviation of B Stock A .025 .105 .270 a. Calculate the expected return for the two stocks. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. b. Calculate the standard deviation for the two stocks. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. -.38 .28 .51 % % % %
43. A retail store manager is staffing for the holiday season and plans to provide employees with additional hours without hiring additional workers. Which factor in human capital planning would be important in this scenario? A.Projected interest rates B.Competitor forecasts C.Expected industry growth D.Availability of employees

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