Question
In: Finance
Problem 2-36 Income Statement (LG2-1) You have been given the following information for PattyCake’s Athletic Wear...
Problem 2-36 Income Statement (LG2-1)
You have been given the following information for PattyCake’s Athletic Wear Corp. for the year 2018:
-
Net sales = $38,900,000.
-
Cost of goods sold = $22,220,000.
-
Other operating expenses = $6,400,000.
-
Addition to retained earnings = $1,210,500.
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Dividends paid to preferred and common stockholders = $1,943,000.
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Interest expense = $1,850,000.
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The firm’s tax rate is 30 percent.
In 2019:
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Net sales are expected to increase by $9.90 million.
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Cost of goods sold is expected to be 60 percent of net sales.
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Depreciation and other operating expenses are expected to be the same as in 2018.
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Interest expense is expected to be $2,125,000.
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The tax rate is expected to be 30 percent of EBT.
-
Dividends paid to preferred and common stockholders will not change.
Calculate the addition to retained earnings expected in 2019. (Enter your answer in dollars, not millions.)
Solutions
jeff jeffy answered 3 months agoRelated Solutions
You have been given the following information for PattyCake’s Athletic Wear Corp. for the year 2021:...
You have been given the following information for PattyCake’s
Athletic Wear Corp. for the year 2021:
Net sales = $39,000,000.
Cost of goods sold = $22,240,000.
Other operating expenses = $6,600,000.
Addition to retained earnings = $1,212,500.
Dividends paid to preferred and common stockholders =
$1,948,000.
Interest expense = $1,860,000.
The firm’s tax rate is 30 percent.
In 2022:
Net sales are expected to increase by $10.00 million.
Cost of goods sold is expected to be 60 percent of net...
You have been given the following information for PattyCake’s Athletic Wear Corp. for the year 2018:...
You have been given the following information for PattyCake’s
Athletic Wear Corp. for the year 2018: Net sales = $38,450,000.
Cost of goods sold = $22,130,000. Other operating expenses =
$5,500,000. Addition to retained earnings = $1,201,500. Dividends
paid to preferred and common stockholders = $1,920,500. Interest
expense = $1,805,000. The firm’s tax rate is 30 percent. In 2019:
Net sales are expected to increase by $9.45 million. Cost of goods
sold is expected to be 60 percent of net...
You have been given the following information for PattyCake’s Athletic Wear Corp. for the year 2018:...
You have been given the following information for PattyCake’s
Athletic Wear Corp. for the year 2018: Net sales = $38,500,000.
Cost of goods sold = $22,140,000. Other operating expenses =
$5,600,000. Addition to retained earnings = $1,202,500. Dividends
paid to preferred and common stockholders = $1,923,000. Interest
expense = $1,810,000. The firm’s tax rate is 30 percent. In 2019:
Net sales are expected to increase by $9.50 million. Cost of goods
sold is expected to be 60 percent of net...
You have been given the following information for PattyCake’s Athletic Wear Corp. for the year 2018:...
You have been given the following information for
PattyCake’s Athletic Wear Corp. for the year 2018:
Net sales = $38,700,000.
Cost of goods sold = $22,180,000.
Other operating expenses = $6,000,000.
Addition to retained earnings = $1,206,500.
Dividends paid to preferred and common stockholders =
$1,933,000.
Interest expense = $1,830,000.
The firm’s tax rate is 30 percent.
In 2019:
Net sales are expected to increase by $9.70 million.
Cost of goods sold is expected to be 60 percent of net...
You have been given the following information for PattyCake’s Athletic Wear Corp. for the year 2018:...
You have been given the following information for PattyCake’s
Athletic Wear Corp. for the year 2018:
Net sales = $39,150,000.
Cost of goods sold = $22,270,000.
Other operating expenses = $6,900,000.
Addition to retained earnings = $1,215,500.
Dividends paid to preferred and common stockholders =
$1,955,500.
Interest expense = $1,875,000.
The firm’s tax rate is 30 percent.
In 2019:
Net sales are expected to increase by $10.15 million.
Cost of goods sold is expected to be 60 percent of net...
You have been given the following information for PattyCake’s Athletic Wear Corp. for the year 2018:...
You have been given the following information for PattyCake’s
Athletic Wear Corp. for the year 2018: Net sales = $39,100,000.
Cost of goods sold = $22,260,000. Other operating expenses =
$6,800,000. Addition to retained earnings = $1,214,500. Dividends
paid to preferred and common stockholders = $1,953,000. Interest
expense = $1,870,000. The firm’s tax rate is 30 percent. In 2019:
Net sales are expected to increase by $10.10 million. Cost of goods
sold is expected to be 60 percent of net...
You have been given the following information for PattyCake’s Athletic Wear Corp. for the year 2018:...
You have been given the following information for PattyCake’s
Athletic Wear Corp. for the year 2018:
Net sales = $38,550,000.
Cost of goods sold = $22,150,000.
Other operating expenses = $5,700,000.
Addition to retained earnings = $1,203,500.
Dividends paid to preferred and common stockholders =
$1,925,500.
Interest expense = $1,815,000.
The firm’s tax rate is 30 percent.
In 2019:
Net sales are expected to increase by $9.55 million.
Cost of goods sold is expected to be 60 percent of net...
You have been given the following information for Kellygirl’s Athletic Wear Corp. for the year 2015:...
You have been given the following information for Kellygirl’s
Athletic Wear Corp. for the year 2015:
a. Net sales = $38,750,000.
b. Cost of goods sold = $22,190,000.
c. Other operating expenses = $6,100,000.
d. Addition to retained earnings = $1,207,500.
e. Dividends paid to preferred and common stockholders =
$1,935,500.
f. Interest expense = $1,835,000.
g. The firm’s tax rate is 30 percent.
h. In 2016, net sales are expected to increase by $9.75
million.
i. Cost of goods...
Problem 2-30 Statement of Cash Flows (LG2-5) Use the balance sheet and income statement below: VALIUM’S...
Problem 2-30 Statement of Cash Flows (LG2-5) Use the balance
sheet and income statement below: VALIUM’S MEDICAL SUPPLY
CORPORATION Balance Sheet as of December 31, 2021 and 2020 (in
thousands of dollars) Assets 2021 2020 Liabilities and Equity 2021
2020 Current assets: Current liabilities: Cash and marketable
securities $ 82 $ 81 Accrued wages and taxes $ 66 $ 51 Accounts
receivable 195 191 Accounts payable 160 151 Inventory 322 301 Notes
payable 141 141 Total $ 599 $ 573...
Problem 2-29 Statement of Cash Flows (LG2-5) Use the balance sheet and income statement below: CLANCY’S...
Problem 2-29 Statement of Cash Flows (LG2-5) Use the balance
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Balance Sheet as of December 31, 2021 and 2020 (in millions of
dollars) Assets 2021 2020 Liabilities and Equity 2021 2020 Current
assets: Current liabilities: Cash and marketable securities $ 2 $ 2
Accrued wages and taxes $ 7 $ 4 Accounts receivable 19 15 Accounts
payable 14 12 Inventory 22 20 Notes payable 12 10 Total $ 43 $ 37...
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