1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Marina86 [1]
3 years ago
9

A proposed new investment has projected sales of $515,000. Variable costs are 44 percent of sales, and fixed costs are $128,500;

depreciation is $49,750. Prepare a pro forma income statement assuming a tax rate of 24 percent. What is the projected net income?
Business
1 answer:
Basile [38]3 years ago
7 0

Answer:

Net operating income= $83,714

Explanation:

Giving the following information:

Sales= $515,000.

Variable costs are 44 percent of sales

Fixed costs are $128,500

Depreciation is $49,750.

Tax=  24 percent.

<u>Income statement:</u>

Sales= 515,000

Total variable cost= (0.44*515,000)= (226,600)

Gross profit= 288,400

Fixed costs= (128,500)

Depreciation= (49,750)

Operating income= 110,150

Tax= 110,150*0.24= (26,436)

Net operating income= 83,714

You might be interested in
Johnson borrowed $45,000 secured by land with a basis of $20,000. Johnson could not pay the principal, so the bank foreclosed an
vredina [299]

Answer:

the income that should be recognized is $25,000

Explanation:

The computation of the income that should Johson recognized is shown below:

Income To be recognized is

= Borrowings amount - Basis of land

= $45000 - $20000

= $25,000

hence, the income that should be recognized is $25,000

We simply applied the above formula so that the correct value could come

And, the same is to be considered

4 0
3 years ago
Colorado Rocky Cookie Company offers credit terms to its customers. At the end of 2013, accounts receivable totaled $670,000. Th
Inga [223]

Answer:

Journal entries

Explanation:

The journal entry are as follows

1. Allowance for doubtful debts $25,500

              To Account receivable $25,500

(Being the written off amount is recorded)

2. Account receivable Dr $2,100

         To Allowance for doubtful debts $2,100

(Being the reinstatement of an account previously written off is recorded)

3. Cash Dr $2,100

          To Account receivable $2,100

(Being the collection of account is recorded)

4. Bad debt expense Dr $82,900

              To Allowance for doubtful debts $82,900

(Being the bad debt expense is recorded)

It is computed below:

= $670,000 × 15% - ($41,000 + $25,500 + $2,100)

= $100,500 - $17,600

= $82,900

Only these entries are recorded

3 0
3 years ago
Net present value ____________________. Group of answer choices compares project cost to the present value of the project benefi
lakkis [162]

Answer:

compares project cost to the present value of the project benefits

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

A good investment is an investment that has a positive NPV. When comparing two or more projects, the project with the higher NPV should be chosen.

4 0
3 years ago
The​ ________ is the optimum budget to managers that plan revenues and expenses at different sales volumes.
ddd [48]

A flexible budget is an optimum budget for managers that plan revenues and expenses at different sales volumes.

<h3>What is flexible budget?</h3>

A flexible budget is one that varies in response to changes in actual revenue or other activities. As a result, the budget is reasonably close to the actual results. This technique differs from the more conventional static budget, which comprises only fixed spending numbers that do not change in response to real revenue levels.

A flexible budget will include budget lines for various amounts. For example, if your monthly widget production is 100, your variable admin costs could be $200. However, if you produce 200 widgets every month, your variable admin costs will rise to $400.

Entrepreneurs can adapt with change thanks to flexible, rolling budgets. This nimble planning process lets you adjust spending throughout the year

To know more about flexible budget follow the link:

brainly.com/question/25353134

#SPJ4

4 0
1 year ago
An increase in demand and a decrease in supply, will lead to a(n) ________ in equilibrium quantity and a(n) ________ in equilibr
Molodets [167]
The answe maybbe C hope helped
8 0
3 years ago
Other questions:
  • Greentech is launching a line of miniature solar chargers for laptops, cellphones, and other electronic devices. The chargers ar
    15·1 answer
  • Brent received a report from the production and purchasing departments with the following values for August: Actual materials qu
    9·1 answer
  • What does it mean to take ownership of your own learning? In your response, describe the difference between active and passive l
    5·1 answer
  • Professional certifications are important and can often lead to higher salaries. The ________ program recognizes individuals tha
    13·1 answer
  • Most successful firms have a clearly-defined, well-written marketing plan that specifies the marketing activities to be performe
    10·1 answer
  • Chris donated securities with a cost of $20,000 and a fair market value of $50,000 to a local civic theater. Chris's tax deducti
    6·1 answer
  • Which legislation gave the government the authority to set and limit shipping costs?
    13·2 answers
  • Calculate Tim's marginal revenue and marginal cost for the first seven frying pans he produces, and plot them on the following g
    13·1 answer
  • What are the three basic types of issues that arise in business finance?​
    14·1 answer
  • Your store is running a sale. All dresses are 40% off. One dress sells for $150. How much money will someone buying this dress s
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!