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inn [45]
3 years ago
6

Pro forma income statement

Business
1 answer:
worty [1.4K]3 years ago
3 0

Answer:

Austin Grocers

1. Projected 2017 Net Income

= $102 million

2. Expected Growth Rate in Dividends

= 6.25% (2/32 x 100)

Explanation:

a) Income statement (in millions of dollars):

                                          2016           2017

                                       $'millions   $'millions

Sales                                 $700          $840

Operating costs

including depreciation     500            630

EBIT                                 $200           $210

Interest                                40               40

EBT                                  $160            $170

Taxes (40%)                        64               68

Net income                      $96            $102

Dividends                         $32             $34        

Addition to

         retained earnings $64            $68

b) Sales for 2017 = $840 million ($700 x 1.2)

c) Operating costs for 2017 = $630 million ($840 x75%)

d) Taxes for 2017 = $68million ($170 x 40%)

e) Dividend payout ratio = Dividend/Net Income = 33.33%

f) Growth Rate in Dividends = Dividend Increase/Previous year's dividend x 100 = 6.25% (2/32 x 100)

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ABC Company's production budget for October is based on 500 units. Standard unit cost for raw materials is $130 per unit ($10 pe
melisa1 [442]

Answer and Explanation:

The computation is shown below;

a. Raw material price variance is

= (standard price - actual price) × actual quantity

= ($10 - $11) × ($69,300 ÷ $11)

= ($10 - $11) × 6,300

= $6,300 unfavorable

b. The raw material usage variance is

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In this way it should be calculated

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Dressing well, being prepared, having a positive attitude, arriving early for work and asking good questions.

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5 0
3 years ago
The Gorman Group issued $900,000 of 13% bonds on June 30, 2016, for $967,707. The bonds were dated on June 30 and mature on June
Charra [1.4K]

Answer:

cash      967,707 debit

  premium on BP      67,707 credit

  Bnds Payable     900,000 credit

interest expense 58062.42  debit

premium on BP 437.58       debit

       cash                     58500 credit

Explanation:

procceds 967,707

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<em><u>first interest payment</u></em>

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4 years ago
Impact of new vendor with zero opening balance
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The impact of the vendor with the zero opening balance is to show that the account has been correctly set up.

<h3>What is the vendor opening balance?</h3>

This is the term that is used to refer to the amount of money that is in an account at the particular time that the account is newly opened.

The way that the vendor balance can be gotten is when the opening balances that are in a new year are carried forwards and the customers are done. In order to track this, the code that is to be used is F. 07.

The opening balance is what would have to be brought forward at the end of an accounting period and it is usually what the vendor would have to use as they try to keep a track of the cash flow that is in their account.

Hence we would say that the impact of the new vendor with this balance that is 0 is to help to determine how correct the set up of the account has been done.

Read more on opening balance here: brainly.com/question/26235574

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5 0
2 years ago
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Answer:

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The keyword here is "quantifiable".

Therefore, recording the percentage of help desk calls answered in the first minute helps to know just how effective the company is probably helping its customers have great experience or easy usage of its products or services by the number of customers calls answered to, or how effective the customer service is.

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