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german
3 years ago
9

Following are financial statement numbers and ratios for Salsa Incorporated for the year ended December 31, Year 1 (in millions)

. NOPAT $572.7 NOA $3,460.8 Net operating profit margin (NOPM) 15.9% Net operating asset turnover (NOAT) 1.04 If we expected revenue growth of 7% in the next year, what would projected revenue be for the year ended December 31, Year 2
Business
1 answer:
Alex Ar [27]3 years ago
7 0

Answer:

$3,854 million

Explanation:

Revenue in year 1 = NOPAT / NOPM

Revenue in year 1 = $572.7 / 15.9%

Revenue in year 1 = $572.7 / 0.159

Revenue in year 1 = $3,601.8868

Projected revenue in year 2 = Revenue in year 1 * (1 + Growth rate)

Projected revenue in year 2 = $3,601.8868 * (1 + 7%)

Projected revenue in year 2 = $3,601.8868 * 1.07

Projected revenue in year 2 = $3854.018876

Projected revenue in year 2 = $3,854

So, the  projected revenue for the year ended December 31, Year 2 is $3,854 million.

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1 year ago
XYZ Co. decided to create a petty cash fund. They estimated that $100 would be needed in the fund. Demonstrate the correct journ
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Petty cash is debited for $100

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Petty cash is a small amount of fund which is kept in the business for day to day expenses. Cash is issued from this fund for daily small expense which is not appropriate to withdraw from the bank by check.

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Dr. Petty cash $100

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3 years ago
What is an imaginary line that extend horizontally from east to west in a globe?​
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3 years ago
Read 2 more answers
A theater group made appearances in two cities. The hotel charge before tax in the second city was $500 lower than in the first.
Naddika [18.5K]

Answer:

Hotel charge in city 1= $5,250

Hotel charge in city 2= $4,750

Explanation:

A theater group made an appearance in two cities.

Let x represent the amount charged in the first city

Let y represent the amount charged in the second city

The hotel charge before tax in the first city is $500 lower than the second city

y= x-500......equation 1

The tax in the first city is 8%

= 8/100

= 0.08

The tax in the second city is 8.5%

= 8.5/100

= 0.085

0.08x + 0.085y= 823.75.........equation 2

Substitute (x-500) for y in equation 2

0.08x + 0.085(x-500)= 823.75

0.08x + 0.085x - 42.5= 823.75

Collect the like terms

0.08x + 0.085x= 823.75+42.5

0.165x= 866.25

x= 866.25/0.165

x = 5,250

Substitute 5250 for x in equation 1

y= x-500

y= 5,250-500

y= 4,750

Hence the hotel charge in city 1 is $5,250 and the hotel charge in city 2 is $4,750

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