QUESTIONS: (2-3) Little Books Inc. recently reported $3m of net income. Its EBIT was $6m‚ and its tax was 40%. What was its interest expense? ANSWER: Net Income $3 Million EBIT $6 Million Divided by 0.6 Less IBT $5 Million Income before Taxes $5 Million Interest Expense $1 Million **Interest Expense = $1M** (2-7) The Talley Corporation had a taxable income of $365‚000 from operations after all operating costs but before (1) interest charges
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* 1. College of Arts and Letters Bulacan State University City of Malolos‚ Bulacan OJT NARRATIVE REPORT (For Television) I‚ Lady Lee‚ a broadcasting student from BAMC-4C‚ had completed a total of OneHundred Fifty (150) hours of office practicum with Technical Operations Division/ FilmArchives in ABS-CBN‚ Quezon City from April 03‚ 2012 to May 07‚ 2012. On the first day of my internship‚ I felt so nervous to commit mistakes because I was anewbie at that time and I also felt afraid mostly when I was
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Constructing a balance sheet of Sophie’s sofas: Cash balances: $10‚000 Inventory of sofas: $200‚000 Store and property: $100‚000 Accounts receivable: $22‚000 Accts payable: $17‚000 Long-term Debt: $170‚000 Balance sheet of (insert name) Assets Liabilities & Shareholders equity cash $10‚000 accounts payable $17‚000 Accounts receivable $22‚000 Long term debt $170‚000 Inventory $200‚000 Shareholders equity $145‚000 Store and Property $100‚000 _______ ________ Total assets: $332
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totaled 75% percent of revenues‚ and depreciation expense was $1.5 million. All revenues were collected in cash during the year and all expenses other than depreciation were paid in cash. What were Brandywine’s 2007 net income‚ total profit margin‚ and cash flow? Net income = 12M * (1 - 75%) - 1.5M = $1.5 million Total profit margin = $1.5M/12M = 12.5% Cash flow = 1.5M + 1.5M = $3 million Suppose the company changed its depreciation calculation procedures(still within
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Financial Accounting 1. Obligation of business that represents the claims of these against the assets of the less cash is called? A. Asset B. An expense (WA) C. Revenue D. An equity E. Liability 2. Net income results when A. Assets > liability B. Revenue = expenses C. Revenue > expenses D. Revenue < expenses E. None 3. Resources owned by a business are referred to as A. Stockholders equity B. Liability C. Assets D. Revenue (WA) E. None 4. Expenses are incurred
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Class Discussion 1. Dartmouth Inc’s latest net income was $1‚250‚000‚ and it had 225‚000 shares outstanding. The company wants to pay out 45% of its income. What dividend per share should it declare? 2. Garcia Industries has sales of $200‚000 and accounts receivable of $18‚500‚ and it gives its customers 25 days to pay. The industry average DSO is 27 days‚ based on a 365-day year. If the company changes its credit and collection policy sufficiently to cause its DSO to fall to the
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earnings‚ plus the value of cash and marketable investments on the balance sheet. The Excel Sheet completes this calculation for you‚ based on inputs that are provided in the top portion of the “Assumptions and Statements” tab. In completing this task‚ you’ll need to address some accounting issues highlighted in the case. Kerr’s job is to try to unwind accounting choices that might provide transitory increases in Net Income‚ which would have the effect of overstating Net Income‚ and hence the value of
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agree with this statement. I would also like to add that cost behavior is also identifying the key resources that are performed‚ resources used in performing these activities‚ costs of the resources‚ and what the cost is driven from. 2-2. Two rules of thumb when analyzing cost behavior are to manage what the company manufactures‚ sells‚ and to give advice as to where costs can be reduced. 2-3. Three examples of a variable cost are a 12% increase in the production of dresses‚ which will cause a
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and which cash flows should be included in capital budgeting analysis. D&D was producing and marketing two major product lines: 1. Lift-Off: Low –suds‚ concentrated powder. 2. Wave: Traditional powder detergent. Questions & Answers: 1. If you were in Steve Gasper’s place‚ would you argue to include the cost from market testing as a cash outflow? If I’m Steven Gasper’s I would not include the cost from market testing as a cash outflow. The reason is because the cost from market
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swaps‚ know as 1031 exchanges‚ permit participants to avoid some or all of the capital gains taxes that would otherwise be due. The bookkeeper for the company has been asked to prepare a report for the company to help its owner/manager analyze performance. The first such report appears below: Note that the revenues and costs in the above report are unit revenues and costs. For example‚ the average office expense is $135 per exchange completed on the planning budget; whereas‚ the average actual
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