Answer:
The net income amount is $101250
The income statement is made in the explanation part.
Explanation:
<u>Income Statement</u>
$ $
Sales 950000
Less:COGS <u>(400000)</u>
Gross profit 550000
<u>Less:Expenses</u>
Selling &Marketing expenses 160000
General & Admin expenses 200000
Depreciation <u>30000 </u> <u>(390000)</u>
Operating Profit 160000
less: Interest expense <u>(25000)</u>
Earnings before tax 135000
less: Tax (at 25%) <u>(33750)</u>
Net Income <u>101250</u>
The basic purpose of measuring cash flow is to estimate how much<span> a. net </span>cash<span> a company has during a given period. ... The executive team at Midas Muffler and Brake decides to publish a statement of its available </span>cash<span> that subtracts from the</span>cash<span>, the planned investments in new shops and new technology.</span>
Answer: Company X could lose more business before it will begin experiencing financial difficulties when it is being compared to company Y
Explanation:
Margin of safety ratio simply helps to understand the extent to which there'll be drop in sales before a company will begins to make a loss.
Since the margin of safety ratio for Company X is 42% and the margin of safety ratio for Company Y is 25%, it means that Company X could lose more business before it begins experiencing financial difficulties when it is compared to company Y.
Answer:
Since profit per unit is more in Finished bookcase, book cases shall be finished and then sold.
Additional profit per unit on finished book cases in comparison to unfinished book cases = $17.85 - $12.24 = $5.61 per unit.
Explanation:
Provided, current profit per unit = Selling price - Total cost = $59.37 - $37.59 - $9.54 = $12.24
This is calculated to know the current profit per unit, without furnishing the bookcase.
In case, the bookcase is furnished then the cost will increase by $5.64 per unit.
That is total cost per unit = $37.59 + $9.54 + $5.64 = $52.77
Revised selling price = $70.62 for each finished unit
Therefore profit pr unit on finished bookcase = $70.62 - $52.77 = $17.85
Since profit per unit is more in Finished bookcase, book cases shall be finished and then sold.
Additional profit per unit on finished book cases in comparison to unfinished book cases = $17.85 - $12.24 = $5.61 per unit.
Answer:
A) kept investors happy but caused overcapitalization and debt for the railroads.
Explanation:
When a firm issued watered stock, it means that they are issuing the stock with an artificially high par value. Watered stocks were a type of fraud related to the sales of stocks with an absurd par value. You have to remember that back then, railroad companies were huge and extremely powerful, monopolies were common and information was scarce and generally manipulated. By issuing stocks with a very high par value investors were tricked into believing that the company was actually worth much more that its real value. Very few people dared to oppose the industry giants and most tried to earn money by using the same dirty tricks.
