Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Question:   Based upon the financial forecast for the year 2023, compute the following HINT:  Taxes should NOT be included in your Fixed or Variable costs for this computation

Question:   Based upon the financial forecast for the year 2023, compute the following HINT:  Taxes should NOT be included in your Fixed or Variable costs for this computation

Accounting

Question:

 

Based upon the financial forecast for the year 2023, compute the following
HINT:  Taxes should NOT be included in your Fixed or Variable costs for this computation.
FYI: The sharks have a 9% Required Rate of Return on their investment  
  2023
Total Fixed Costs  
Total Variable Costs  
Contribution Margin ratio  
Breakeven in sales dollars  
DOL  
DFL  

Income Statement:

    2020 2021 2022 2023
Sales (all on credit) 1,200,000 1,500,000 1,875,000 3,750,000
Cost of Goods Sold (800,000) (1,040,000) (1,105,000) (1,835,000)
Gross Profit 400,000 460,000 770,000 1,915,000
Selling and Administrative Expense (304,900) (350,500) (443,700) (1,057,238)
Operating profit (EBIT) 95,100 109,500 326,300 857,762
Interest expense (35,000) (45,000) (85,000) (60,390)
Net Income before Taxes 60,100 64,500 241,300 797,372
Taxes   (36,900) (49,200) (55,600) (287,054)
Net Income 23,200 15,300 185,700 510,318
Shares   60,000 60,000 78,000 104,000
Earnings per Share $0.39 $0.26 $2.38 $4.91

Balance Sheet:

        2020 2021 2022 2023
ASSETS              
Cash       30,000 40,000 30,000 50,000
Marketable Securities     20,000 25,000 30,000 30,000
Accounts Receivable     170,000 259,000 360,000 622,970
Inventory       230,000 261,000 290,000 650,417
  Total Current Assets:   450,000 585,000 710,000 1,353,387
Plant and equipment     650,000 765,000 1,390,000 2,140,000
   Less:  accumulated depreciation   (65,000) (141,500) (280,500) (494,500)
   Net Plant and equipment   585,000 623,500 1,109,500 1,645,500
Total Assets     1,035,000 1,208,500 1,819,500 2,998,887
               
LIABILITIES & STOCKHOLDER'S EQUITY        
Accounts Payable     200,000 310,000 505,000 799,693
Accrued Expenses     20,400 30,000 35,000 69,585
  Total Current Liabilities   220,400 340,000 540,000 869,278
Long-term Liabilities     325,000 363,600 703,900 603,900
  Total Liabilities   545,400 703,600 1,243,900 1,473,178
Common Stock ($1 par)   60,000 60,000 78,000 104,000
Capital paid in excess of par   190,000 190,000 262,000 1,236,000
Retained Earnings     239,600 254,900 235,600 185,708
  Total Stockholder's Equity 489,600 504,900 575,600 1,525,708
Total Liabilities & Stockholder's Equity 1,035,000 1,208,500 1,819,500 2,998,886

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE