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Mice21 [21]
3 years ago
13

Find the next year's net income for XYZ Inc. Next year, the sales grow by 25%. The current sales $300 million, and the current p

rofit margin is 10% and you expect it to remain constant.
Business
1 answer:
Oksanka [162]3 years ago
4 0

Answer: $37.5 million

Explanation:

The next year's net income for XYZ will be calculated as follows:

Current sales = $300 million

Current Profit margin = 10%

Sales Growth rate = 25%

The next year's sales will be:

= Current Year's Sales × (1 + Sales Growth rate)

= $300 million × (1 + 0.25)

= $300 million × 1.25

= $375 million

Next Year's Net Income will then be:

= $375 million × 10%

= $37.5 million

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To adjust for rent used up during the year that was recorded to the prepaid rent account when paid for;

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A prepaid rent account simply a current asset account that's responsible for reporting the amount of future rent expense that was paid in advance of the rental period.

On this note, the amount reported on the balance sheet is the amount that has not yet been used or expired as of the balance sheet date.

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6 0
2 years ago
Makeria bought an investment for $300. Two years later she sold it for $360, what was her total ROI as a percentage?
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Answer:

20%

Explanation:

300÷360×100 =20%. hence 300×100=30000÷100=20%

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2 years ago
Money managers:
yawa3891 [41]
The answer is D) are on the "but side" of Wall Street.
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3 years ago
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Although generous disability insurance can help those who have been permanently injured, it can also increase the likelihood tha
emmasim [6.3K]

Answer:

B, Indirect incentive

Explanation:

An incentive is anything that motivates an individual to behave in a certain way. An incentive could range from money to many other things and it is the reason why an individual acts in a certain way.

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In the case of the above question, a generous disability insurance can motivate workers to falsely claim to be disabled. This means that the financial implication of the insurance package for disability is most likely the only reason for workers to claim false disability.

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4 0
3 years ago
The Jackson-Timberlake Wardrobe Co. just paid a dividend of $2.15 per share on its stock. The dividends are expected to grow at
tekilochka [14]

Answer:

a)  

$34.4

b)

$37.20

c) $59.57

Explanation:

Given:

Dividend paid = $2.15

Growth rate = 4% = 0.04

Required return = 10.5% = 0.105

Now,

a) Present value = \frac{\textup{Dividend paid}\times\textup{(1 +growth rate)}^n}{\textup{(Required return-Growth rate)}}

for the current price n = 1

thus,

Current price = \frac{\textup{Dividend paid}\times\textup{(1+growth rate)}^n}{\textup{(Required return-Growth rate)}}

=  \frac{\textup{2.15}\times\textup{(1 +0.04)}^1}{\textup{(0.105-0.04)}}

=  $34.4

b) Price in 3 years

i.e n = 3

= \frac{\textup{Dividend paid}\times\textup{(1 +growth rate)}^n}{\textup{(Required return-Growth rate)}}

=  \frac{\textup{2.15}\times\textup{(1 +0.04)}^3}{\textup{(0.105-0.04)}}

=

$37.20

c) Price in 15 years

i.e n = 15

= \frac{\textup{Dividend paid}\times\textup{(1 +growth rate)}^n}{\textup{(Required return-Growth rate)}}

=  \frac{\textup{2.15}\times\textup{(1 +0.04)}^{15}}{\textup{(0.105-0.04)}}

=  $59.57

4 0
3 years ago
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