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musickatia [10]
2 years ago
8

A proposed new investment has projected sales of $850,000. Variable costs are 60 percent of sales, and fixed costs are $174,000;

depreciation is $75,000. Prepare a pro forma income statement assuming a tax rate of 30 percent. What is the projected net income
Business
1 answer:
777dan777 [17]2 years ago
3 0

Answer:

  • <u>63,700</u>

Explanation:

Sales:                                                 850,000

Variable Cost: (850,000*60%) =      <u>510,000</u>

Contribution Margin = 850k-510k= <em>340,000</em>

Fixed cost =                                       174,000

Depreciation =                                    <u>75,000</u>

Earnings Before Taxes =                    <em>91,000</em>

Taxes (30%) =                                    <u>  (27,300)</u>

<h3>Net Income                                 <u>63,700</u></h3>

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Answer and Explanation:

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3 0
3 years ago
Mayan company had net income of $33,480. the weighted-average common shares outstanding were 9,300. the company has no preferred
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Answer:

Earnings Per Share = $3.6

Explanation:

Given

Net Income Average = $33,480

Weighted-average common shares outstanding = 9,300

Shares sold = 4,300

Required

Calculate the company's earnings per share.

Earning per share is calculated as thus;

Let N represent the Net Income; P represent the Preferred Dividend and W represent the Weighted-average common shares outstanding

Earnings Per Share = \frac{N - P}{W}

The question says there was no preferred stock;

So, P= 0

Substitute $33,480 for N and 9,300 for W.

The formula becomes;

Earnings Per Share = \frac{33,480 - 0}{9300}

Earnings Per Share = \frac{33,480}{9300}

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3 0
3 years ago
Commercial banks, savings and loan associations, and credit unions Multiple Choice
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Answer:

The correct answer is letter "D": accept deposits and make loans.

Explanation:

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At a lower level, savings and loan associations and credit unions offer deposits and loans but the first ones share the money pooled among its members who share profits and credit unions are non-profit entities mainly formed by employees of the same organization.

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This attitude reflects ageism.
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5 0
3 years ago
You have been asked to help King Company make the necessary journal entry to record the purchase of office furniture for a $170
Marina CMI [18]

Answer:

Debit Office Furniture account    $710

Credit Cash account                    $170

Credit Accounts payable             $710

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3 0
3 years ago
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