000-$0=$3‚000 Firm B $3‚000-10%*$5‚000=$3‚000-$500=$2‚500 c. If sales increase by 10 percent to 11‚000 units‚ by what percentage will each firm’s earnings after interest increase? To answer the question‚ determine the earnings after taxes and compute the percentage increase in these earnings from the answers you derived in part b. New Sales = 11000 Firm A EBIT = Revenue - Operating Expenses = $2.50*11‚000 - $1*11000 - $12‚000 = $4‚500 Earnings After Interest = $4‚500 Percentage Increase
Premium Income Costs Generally Accepted Accounting Principles
costs will have already occurred‚ which means these are not incremental cash flows. Hence‚ they are irrelevant. Solution to Integrative Problem‚ parts 4‚ 5‚ & 6. Section I. Calculate the change in EBIT‚ Taxes‚ and Depreciation (this become an input in the calculation of Operating Cash Flow in Section II). Year | 0 | 1 | 2 | 3 | 4 | 5 | Units Sold | | 70‚000 | 120‚000 | 140‚000 | 80‚000 | 60‚000 | Sale Price | | $300 | $300 | $300 | $300 | $260 | | |
Premium Net present value Internal rate of return Cash flow
M E M O R A N D U M Re: Week 5 Reflection ________________________________________________________ This week marks the final week for this course. Team 5 has discussed the ethical implications involved with accounting principles and the importance of having regulations in place in order to maintain accuracy. The following addresses some situations that may lead to unethical accounting practices as well as the effects of such behavior. The Sarbanes-Oxley Act is also addressed because of its
Premium Management Ethics Business
FIN 571 FINAL EXAM 3 http://www.finalexamguideline.com/FIN-571-FINAL-EXAM-3-53.htm 1) Whenever a firm splits itself into separate units‚ with each unit having limited liability with respect to its financing‚ the capital structure of each unit becomes __________ 2) An investor’s risky portfolio is made up of individual stocks. Which of the following statements about this portfolio is true? 3) An all-equity-financed firm would __________. 4) The capital budgeting process can be broken
Premium Net present value Bond Investment
Caitlin Zammuto December 19‚ 2011 AUCW 212 Professor Canedy Final Examination Question Three American international relations are extremely scattered‚ and when examined can be interpreted in many different ways. This may be because there is perhaps a blend of these major schools of American foreign policy in all of our international relations. The major schools that will be used as lenses are isolationism‚ liberal internationalism‚ Kissingerian realism‚ democratic globalism‚ and democratic
Premium Political philosophy United States World War II
MGMT 102 Sample questions (1-10) 1. Briefly describe any one of the communication models discussed in the textbook and/or lecture Lasswell’s (1948) model describes communication as a one-way transmission of messages. The model shows the ‘who’ as the ‘source’‚ the ‘what’ as the message‚ the ‘how’ as the channel‚ the ‘whom’ as the destination and the ‘effect’ as the outcome. 2. Describe three of the of the tests you can use to enable ethical decision-making Are we rationalising: Identify
Premium Emotion Culture Communication
LEARNING TEAM _ Starbucks’ 2013 Initiatives FIN 370 9/15/2013 Introduction: It is important to understand the relationship between strategic and financial planning when preparing for the future of a company and forecasting the success. Starbucks has developed two strategic initiatives for 2013 to help grow the company and increases success. Starbucks decided to try to expand the drive thru chains and develop a home brewing system. In developing this strategic plan‚ Starbucks
Premium Starbucks Strategic management Coffee
interest exp. (400‚000 + ½ (300‚000)) 5% = (550‚000) 5% = 27‚500 Long-term interest exp. (400‚000 + ½ (300‚000)) 10% = (550‚000) 10% = 55‚000 27‚500 + 55‚000 = 82‚500 Earnings before interest and taxes = 200‚000 Interest expenses = 82‚500 Earnings before taxes = 200‚000 – 82‚500 = 117‚500 Taxes = 117‚500 X 34% = 39‚950 Earnings after interest and taxes = 200‚000 – 82‚500 – 39‚950 = 77‚550 B. Short-term interest exp. ( ½ (400‚000)) 5% = (200‚000) 5% = 10‚000 Long-term interest exp. (400
Premium Finance Economics
ALL FI515 Week 5 Exam Answers ------------------------------------------------- Top of Form QUESTION 1: Which of the following statements is CORRECT? 1. One of the disadvantages of a sole proprietorship is that the proprietor is exposed to unlimited liability. 2. It is generally easier to transfer one’s ownership interest in a partnership than in a corporation. 3. One of the advantages of the corporate form of organization is that it avoids double taxation. 4. One of the advantages of a
Premium Bond Bonds Cash flow
Strategic Initiative Learning Team B: University of Phoenix FIN/370 Stephen Beadnell August 26‚ 2013 PepsiCo has implemented a very sound strategic initiative plan‚ by doing so PepsiCo has been able to develop and expand its company even further and will continue to do through the following methods. To ensure a sound strategic plan PepsiCo has implemented a strategic initiative plan will include thorough planning based of factors such as the PepsiCo’s annual report. The initiative will carefully
Premium Strategy Strategic management Investment