"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"

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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 Apr 20, 2023

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