a.
To calculate: The after-tax income for 20X2.
Introduction:
After tax income:
It is that net income which remains after the deduction of all the federal state and withholding taxes. It represents the income available to the consumer that can be utilized.
b.
To calculate: The percentage gain in income after tax due to a 10% increase in sales price and explain the reason for the impact this has.
Introduction:
After tax income:
It is that net income which remains after the deduction of all the federal state and withholding taxes. It represents the income available to the consumer that can be utilized.
c.
To calculate: The after-tax income for 20X3.
Introduction:
After tax income:
It is that net income which remains after the deduction of all the federal state and withholding taxes. It represents the income available to the consumer that can be utilized.
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Loose Leaf for Foundations of Financial Management Format: Loose-leaf
- Sisyphus Inc. records total sales of $657,500 in the current period, with a cost of goods sold of $389,000 . Sisyphus expects 4% of sales to be returned. How much in net sales will Sisyphus recognize for the current period? Group of answer choices $373,400 $268,500 $631,200 $657,500 $257,760 The Sisyphus Inc’s (SSY) Company’s annual statement of cash flows reported the following (in millions): Net cash from financing activities $63,864 Net cash from investing activities -62,512 Cash at the beginning of the year 13,152 Cash at the end of the year 18,948 What did SSY report for “Net cash from operating activities” during the year? Group of answer choices $71,220 million cash inflow None of the above $4,444 million cash outflow $4,444 million cash inflow $71,220 million cash outflowarrow_forward5) Universal Enterprise sells a product that cost $450 per unit and has a monthly demand of 5,000 units. The annual holding cost per unit is calculated as 5% of the unit purchase price. It costs the business $75 to place a single order. Currently the business places 12 orders each year. i) What is the total stock administrative cost of Universal’s current inventory policy? Please answer the questions in proper accounting format. ii) Is this the entity’s cost minimizing solution for this product each year? Explain. Please answer the questions in proper accounting format.arrow_forwardSABM Co. reported net income of P2,100,000 for 2020 . It incurred operating expenses other than interest expense , at 40% of cost of sales but only 20% of sales. Interest expense is 5% of sales. Purchases is 120% of cost of sales and ending inventory is twice the beginning inventory. If the company is subject to 30% income tax, how much is the company's sales for the year? Data taken from the records of XYZ Co. revealed the following for 2020: Inventory - January 1 :P2,000,000; Net purchases : P7,000,000; Inventory - December 31 : P2,800,000; Sales Returns and allowances: P750,000. Gross profit based on net sales is 20%. How much is the gross sales for 2020?arrow_forward
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- 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 385,572.0 275,078.0 330,325.0 506,030.0arrow_forwardKeller Cosmetics maintains an operating profit margin of 8.15% and a sales-to-assets ratio of 3.20. It has assets of $530,000 and equity of $330,000. Assume that interest payments are $33,000 and the tax rate is 30%. a. What is the return on assets? b. What is the return on equity? Note: For all requirement, enter your answers as a percent rounded to 2 decimal places. a. Return on assets b. Return on equity % %arrow_forwardSaunderstown Company reported the following pretax data for its first year of operations. Net sales Cost of goods available for sale Operating expenses Effective tax rate Ending inventories: If LIFO is elected If FIFO is elected Gross profit ratio $2,950 $2,480 $ 700 % 30% What is Saunderstown's gross profit ratio if it elects LIFO? (Round your answer to the nearest whole percentage.) 990 $ $1,250arrow_forward
- An entity was offering premium as a sales promotion scheme and that during the year it purchased 10,000 premiums for P20 each. Customers need to remit 10 boxes and P5 to redeem one premium. Assume there were no redemptions during the first year of the promotion, which of the following statements would be correct if it uses the revenue approach? a. The entity will report an inventory of premiums at the net cost of P15. Tb. he entity will report an estimated liability equal to the premium expense. c. None of the other choices are correct. Td. he entity will not report any expense since there were no redemption. e. No accounting liability shall be recognized since there were no redemptions.arrow_forwardIncome is to be evaluated under four different situations as follows: a. Prices are rising: (1) Situation A: FIFO is used. (2) Situation B: LIFO is used. b. Prices are falling: (1) Situation C: FIFO is used. (2) Situation D: LIFO is used. The basic data common to all four situations are sales, 530 units for $21,200; beginning inventory, 300 units; purchases, 380 units; ending inventory, 150 units; and operating expenses, $3,900. The income tax rate is 40%. Required: 1. Complete the following tabulation for each situation. In Situations A and B (prices rising), assume the following: beginning inventory, 300 units at $12 = $3,600; purchases, 380 units at $14 = $5,320. In Situations C and D (prices falling), assume the opposite; that is, beginning inventory, 300 units at $14 = $4,200; purchases, 380 units at $12 = $4,560. Use periodic inventory procedures. 2. Complete the following sentence: 3. Complete the following sentence regarding the relative effects on the cash position for each…arrow_forwardIncome is to be evaluated under four different situations as follows: a. Prices are rising: (1) Situation A: FIFO is used. (2) Situation B: LIFO is used. b. Prices are falling: (1) Situation C: FIFO is used. (2) Situation D: LIFO is used. The basic data common to all four situations are sales, 520 units for $20,800; beginning inventory, 290 units; purchases, 410 units; ending inventory, 180 units; and operating expenses, $3,500. The income tax rate is 40%. Required: 1. Complete the following tabulation for each situation. In Situations A and B (prices rising), assume the following: beginning inventory, 290 units at $10 = $2,900; purchases, 410 units at $12 = $4,920. In Situations C and D (prices falling), assume the opposite; that is, beginning inventory, 290 units at $12 = $3,480; purchases, 410 units at $10 = $4,100. Use periodic inventory procedures. 2. Complete the following sentence: 3. Complete the following sentence regarding the relative effects on the cash position for each…arrow_forward
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