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
OLEGan [10]
2 years ago
14

Jim's Espresso expects sales to grow by 10.3 % next year. Using the following statements and the percent of sales​ method, forec

ast:
a. Costs
b. Depreciation
c. Net Income
d. Cash
e. Accounts receivable
f. Inventory
g.​ Property, plant, and equipment ​(​Note: Make sure to round all intermediate calculations to at least five decimal​ places.)

The Tax Cuts and Jobs Act of 2017 temporarily allows​ 100% bonus depreciation​ (effectively expensing capital​ expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career.



Balance Sheet
Assets
Cash and Equivalents $15,050
Accounts Receivable 2070
Inventories 4090
Total Current Assets $21,210
Property, Plant and Equipment 10050
Total Assets $31,260

Liabilities and Equity:
Accounts Payable $1,580
Debt 3930
Total Liabilities $5,510
Stockholders' Equity 25750
Total Liabilities and Equity $31,260

Income Statement:
Sales $204,560
Costs Except Depreciation (99,880)
EBITDA $104,680
Depreciation (5,960)
EBIT $98,720
Interest Expense (net) (410)
Pretax Income $98,310
Income Tax (34,409)
Net Income $63,901

The forecasted costs will be :___________
Business
1 answer:
stepladder [879]2 years ago
5 0

Answer:

Jim's Espresso

The forecasted costs will be :___________

a. Costs                = $110,168

b. Depreciation    = $6,575

c. Net Income      = $70,482

d. Cash                = $16,600

e. Accounts receivable  = $2,283

f. Inventory          = $4,511

g.​ Property, plant, and equipment = $11,085

Explanation:

a) Data and Calculations:

Sales growth = 10.3%

Balance Sheet

Assets                                                         Percentage of sales

                                                                   Current      Forecast

Cash and Equivalents              $15,050     0.07357    $16,600

Accounts Receivable                    2070     0.01012         2,283

Inventories                                    4090     0.01999         4,511

Total Current Assets                $21,210      

Property, Plant and Equipment 10,050     0.04913        11,085

Total Assets                             $31,260

Liabilities and Equity:

Accounts Payable                     $1,580

Debt                                             3930

Total Liabilities                         $5,510

Stockholders' Equity               25750

Total Liabilities and Equity   $31,260

Income Statement:              Current      %              Forecast

                                               Year

Sales                                 $204,560      1              $225,630

Costs Except Depreciation (99,880)     0.48827     (110,168)

EBITDA                              $104,680      0.51173

Depreciation                         (5,960)     0.02914        (6,575)

EBIT                                    $98,720      0.48260

Interest Expense (net)              (410)     0.00200

Pretax Income                    $98,310      0.48059

Income Tax                         (34,409)     0.16821

Net Income                        $63,901      0.31238       $70,482

The forecasts are based on sales of the current year and the next year.

You might be interested in
According to the principle of comparative advantage, Group of answer choices countries should specialize in the production of go
Vanyuwa [196]

Answer:

should specialize in the production of goods for which they have a lower opportunity cost of production than their trading partners

Explanation:

A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.

For example, country A produces 10kg of beans and 5kg of rice. Country B produces 5kg of beans and 10kg of rice.  

for country A,  

opportunity cost of producing beans = 5/10 = 0.5

opportunity cost of producing rice = 10/5 = 2

for country B,  

opportunity cost of producing rice = 5/10 = 0.5

opportunity cost of producing beans = 10/5 = 2

Country A has a comparative advantage in the production of beans and country B has a comparative advantage in the production of rice

Country A should specialise in the production of beans and B  should specialise in the production of rice

4 0
2 years ago
In order for a country to progress from a less developed country (LDC) to a moderately developed country (MDC), the country woul
Margaret [11]

Answer:

d) raise the per-capita income

Explanation:

A less developed country is a country with a low per capita income. They usually don't have a sustainable development.

A moderately developed country is a country that has a per capita income of between $1000 - $12,000.

Per Capita income = GDP / population

I hope my answer helps you.

7 0
3 years ago
Which of the following is TRUE of debt securities? (A) Debt securities include preferred stocks. (B) Debt securities typically p
Bingel [31]

Answer:

The statement which is correct and true is that the debt securities usually pay interest for the fixed period or year. Therefore, the correct option is B.

Explanation:

Debt securities are the securities which refer to a debt instrument like CD (Certificate of deposit, preferred stock, corporate bond and municipal bond, it is sold or bought among the parties.

It is also called as the securities which are fixed income, therefore, the statement which is correct is that these securities pay interest for a fixed period.

6 0
3 years ago
Taco Loco is unsure whether the amount of beef that their computer thinks is in inventory is correct. What is the range in value
STALIN [3.7K]

Answer:

C: 17.78-30 pounds

6 0
3 years ago
Jamesway Corporation has two separate divisions that operate as profit centers. The following information is available for the m
Nookie1986 [14]

Answer:

White Division Gross Profit  = $72,200

Grey Division Gross Profit =  $247,700

Explanation:

                                                     White Division    Grey division

Sales (net)                                      $270,000            $540,000

Less: Cost of goods sold              <u> $135,000  </u>          <u>$202,500</u>

Gross Margin                                 $135,000             $337,500

Less: Salary Expenses                   $37,800              $64,800

Rent                                                 <u>$25,000</u>              <u>$25,000</u>

Gross Profit                                   <u> $72,200 </u>             <u>$247,700</u>

The White Division occupies 25,000 square feet in the plant. The Grey Division occupies 25,000 square feet. Hence, the rent expenses will be shared equally. Rent = $50,000 hence, both division will pay $25,000 each              for rent

7 0
2 years ago
Other questions:
  • Kelsey wants to know what the main purpose of the visuals in the committee's report will be. what will you tell him?
    13·1 answer
  • When using the book value of equity, the debt to equity ratio for Luther in 2018 is closest to: A) 0.43 B) 2.29 C) 2.98 D) 3.57
    6·1 answer
  • Printers Company pays a $25,000 annual membership fee to a trade association for paper wholesalers. The trade association estima
    15·1 answer
  • It is usually easier to detect inadequate disclosure fraud that involves______ disclosures than it is to detect disclosure fraud
    9·1 answer
  • If you are willing to purchase a house for $500,000 and you purchase the house for $500,000, this transaction will generate:
    6·1 answer
  • During 2015, equipment with a book value of $40,000 and an original cost of $210,000 was sold at a loss of $3,000. how much depr
    13·1 answer
  • In ________ ranking, raters look at a list of employees, decide who the best employee is, and cross that person's name off the l
    10·1 answer
  • This table shows the balance in an account if monthly deposits of $10 were compounded monthly.
    15·1 answer
  • A company that makes fasteners and sells them to many different
    15·2 answers
  • Select the correct answer.
    6·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!