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In: Finance
In 20X8 ABC Corporation had sales of $3,482 (in millions), EBIT of $638 (in millions), and...
In 20X8 ABC Corporation had sales of $3,482 (in millions), EBIT of $638 (in millions), and net income of $189 (in millions). Its DOL, DFL, and DCL are 5.46, 3.38 and 18.42, respectively. If the EBIT decreases to $600 (in millions) in 20X9, what is the net income of ABC in 20X9?
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jeff jeffy answered 1 year agoRelated Solutions
In 20X5 MyEducator had sales of $5,521 (in millions), EBIT of $1,720 (in millions), and net...
In 20X5 MyEducator had sales of $5,521 (in millions), EBIT of
$1,720 (in millions), and net income of $528 (in millions). Its
DOL, DFL, and DCL are 3.21, 3.26 and 10.46, respectively. If the
sales decreases to $5,200 (in millions) in 20X6, what is the
earnings before interest and taxes of MyEducator in 20X6?
A)$1,399
B)$674
C)$1,394
D)$1,775
E)$2,041
ABC Corporation owns 75 percent of XYZ Company's voting shares. During 20X8, ABC produced 50,000 chairs...
ABC Corporation owns 75 percent of XYZ Company's voting shares.
During 20X8, ABC produced 50,000 chairs at a cost of $79 each and
sold 35,000 chairs to XYZ for $90 each. XYZ sold 18,000 of the
chairs to unaffiliated companies for $117 each prior to December
31, 20X8, and sold the remainder in early 20X9 to unaffiliated
companies for $130 each. Both companies use perpetual inventory
systems. 10. Required information Based on the information given
above, what amount of cost...
Consider the following two companies: (#s in $millions) Company A Company B Sales 5,990 10,500 EBIT...
Consider the following two companies:
(#s in $millions)
Company A
Company B
Sales
5,990
10,500
EBIT
600
1120
Interest
40
320
Earnings Before Tax
560
800
Taxes @ 40%
224
320
Net Income
336
480
Debt
400
3,200
Equity
1,600
800
Part (a) Calculate each company's ROE, ROA, and ROIC
Company A
ROE
ROA
ROIC
Company B
ROE
ROA
ROIC
Part (b)
Why is company B’s ROE so much higher than A’s? Does this mean B
is a better company?...
Part A. Suppose that ABC had the following sales growth: Sales in 2012: $0.6M; Sales in...
Part A.
Suppose that ABC had the following sales growth: Sales in 2012:
$0.6M; Sales in 2013: $20M; Sales in 2014: $50M; Sales in 2015:
$100M; Sales in 2016: $55M; settling to a constant growth rate of
2% forever. Thanks to its business model, the company has no
inventory or accounts receivables. It books and collects 100% of
all sales initially but needs to pay 70% of all sales to the
creative entrepreneurs 60 days after the sale. Suppose ABC...
For a recent year, McDugal's company-owned restaurants had the following sales and expenses (in millions): Sales...
For a recent year, McDugal's company-owned restaurants had the
following sales and expenses (in millions):
Sales $36,000
Food and packaging $8,820
Payroll 9,500
Occupancy (rent, depreciation, etc.) 12,180
General, selling, and admin. expenses 5,500
Other expense 720
Total expenses (36,720)
Operating income (loss) $(720)
a. What is McDonald's contribution margin? Enter your answer in
million, rounded to one decimal place.
b. What is McDonald's contribution margin ratio? Round your
percentage answer to one decimal place.
c. How much would operating...
For a recent year, McDugal's company-owned restaurants had the following sales and expenses (in millions): Sales...
For a recent year, McDugal's company-owned restaurants had the
following sales and expenses (in millions): Sales $20,200 Food and
packaging $7,702 Payroll 5,400 Occupancy (rent, depreciation, etc.)
3,998 General, selling, and admin. expenses 3,100 Other expense 400
Total expenses (20,600) Operating income (loss) $(400) Assume that
the variable costs consist of food and packaging, payroll, and 40%
of the general, selling, and administrative expenses. a. What is
McDonald's contribution margin? Enter your answer in million,
rounded to one decimal place....
For a recent year, McDonald's Company-owned restaurants had the following sales and expenses (in millions): Sales...
For a recent year, McDonald's Company-owned restaurants had the
following sales and expenses (in millions):
Sales
$25,400
Food and packaging
$7,868
Payroll
6,400
Occupancy (rent, depreciation, etc.)
6,672
General, selling, and administrative expenses
3,700
$24,640
Income from operations
$760
Assume that the variable costs consist of food and packaging,
payroll, and 40% of the general, selling, and administrative
expenses.
a. What is McDonald's contribution margin?
Round to the nearest million. (Give answer in millions of
dollars.)
$ million
b. What...
ABC company had the following balance sheet in millions of pesos on DEC. 31 2013 Assets...
ABC company had the following balance sheet in millions of
pesos on DEC. 31 2013
Assets
Cash 400
Acct rec. 200
Inventory 800
Net plant and equipment 600
Liabilities and net worth
Acct pay 500
Long Term debt 300
Capital stock 400
Retained earnings 800
Relevant exchange rate
$.08/peso inventory and capital stock was issued at this
rate
$.10/peso plant & equipment LT debt
Ex rate for 31 dec 2013
$.12/peso ex rate 01 Jan 2014
As of 2013 assume...
ABC Corporation had the following transactions: 2020 01-Feb ABC loaned $20,000 To XYZ Corporation in exchange...
ABC Corporation had the following transactions:
2020 01-Feb ABC loaned $20,000 To XYZ Corporation in exchange
for a 6% 3 month note
28-Feb Made an adjusting entry to accrue interest on XYZ
note.
01-May Collected the XYZ note. 01-Jun Received a 3 month 5% ,
$250,000 note from KLM Incorporated as settlement for their
account.
31-Aug Collected the KLM Incorporated note. 01-Sep Sold goods to
123 Limited , receiving a $20,000 six month 5% note
01-Sep Sold the 123 Limited...
The Moore Corporation had operating income (EBIT) of $800,000. The company's depreciation expense is $240,000. Moore...
The Moore Corporation had operating income (EBIT) of $800,000.
The company's depreciation expense is $240,000. Moore is 100%
equity financed, and it faces a 35% tax rate.
What is the company's net income?
$
Assuming no changes to any of the Balance Sheet accounts, what
is its net cash flow?
$
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