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n200080 [17]
3 years ago
6

If a sales increase is forecasted, how will it affect expenses on the pro forma income statement if market conditions are expect

ed to remain stable? There will be no effect on expenses. Expenses will decrease. It depends on the type of product being sold. Expenses will increase.
Business
1 answer:
emmainna [20.7K]3 years ago
6 0

Answer:

Expenses will increase.

Explanation:

In this method, the revenue should be rised according to the forecasting method also the expense contains the similar percentage of revenue that was for the previous periods

So in the case when the revenue is increased so the expense should also be increased with the real terms

Therefore the last option is correct

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EP Enterprises has the following income statement. How much net operating profit after taxes (NOPAT) does the firm have?
mezya [45]

Answer:

Option (c) is correct.

Explanation:

Given that,

Sales = $ 2,000.00

Costs = 1,400.00

Depreciation = 250.00

EBIT = $ 350.00

Interest expense = 70.00

EBT = $280.00

Taxes (25%) = 112.00

Net income = $168.00

Net operating profit after taxes (NOPAT):

= EBIT × (1 - tax rate)

= $350 × (1 - 25%)

= $350 × 0.75

= $262.50

Therefore, the net operating profit after taxes (NOPAT) is $262.5.

8 0
3 years ago
Voight company's account balances at december 31 for accounts receivable and allowance for doubtful accounts were $1,400,000 and
luda_lava [24]
$58,000 is the amount of adjusting entry for bad debts at december 31st. To calculate the adjusting entry for bad debts at december 31st we need to subtract the aloowance for doubtful accounts to accounts receivable which is $128,000 and $70,000 respectively. So 128,000 - 70,000 = $58,000. The answer in this question is $58,000.
4 0
3 years ago
Suppose you were trying to decide which of two machines to purchase. furthermore, suppose the length to which the machines cut a
aev [14]

You also need to look at the variability of the machines. Less variation is more desirable to be purchased since it would not be expected to have many errors in cutting. The distinction of a certain output from other may affect the quality of your product therefore the less variations there is, the more desirable the machine would be. 

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7 0
3 years ago
Suppose that the Federal Reserve (the "Fed") sells $1.5 million of bonds to a bond dealer, who pays the Fed by writing a check a
GuDViN [60]

Answer:

C. Checkable deposits fall by $1.5 million, and the banking system's holdings of securities fall by $1.5 million.

Explanation:

Checkable deposits are a category of Custer deposit that allows a customer withdraw the amount in their accounts on demand.

Of the federal reserve sells $1.5 million worth of bonds and gets paid through a checking account, then the balance in the checking account will go down by $1.5 million.

Since the Federal reserve (central bank of the United States) is part of the banking system and they are giving out bonds, the banking system's holdings of securities fall by $1.5 million.

5 0
3 years ago
Where can I find a bomber winter jacket In flushing
ollegr [7]
I would try Amazon or Ebay.

Is this a school question?
7 0
4 years ago
Read 2 more answers
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