Question
In: Finance
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 sales.
-
Depreciation and other operating expenses are expected to be the same as in 2018.
-
Interest expense is expected to be $2,090,000.
-
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.
Solutions
jeff jeffy answered 3 months agoRelated Solutions
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 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 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 2-36 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.
Dividends paid to preferred and common stockholders =
$1,943,000.
Interest expense = $1,850,000.
The firm’s tax rate is 30 percent.
In 2019:
Net sales are expected to increase by $9.90 million.
Cost of goods sold is expected to...
You have been given the following information about a motel for the coming year: &
You have been given the following information about a motel for
the coming
year:
(A)
Occupancy Forecast
75%
(B)
Rooms department variable cost per occupied room is estimated to
be
$7.75
(C)
Owners'
investment
$800,000
(D)
Desired after tax yield on owners' investment
15%
(E)
Current income tax rate
30%
(F)
The motels fixed costs for the coming year were anticipated to be
825,000
(G)
The motel has this many rooms available to rent
100...
You have been given the following information for Sherry's Sandwich Corp.: Net sales = $300,000; Gross...
You have been given the following information for Sherry's
Sandwich Corp.:
Net sales = $300,000;
Gross profit = $100,000;
Addition to retained earnings = $30,000;
Dividends paid to preferred and common stockholders = $8,500;
Depreciation expense = $25,000.
The firm's tax rate is 30 percent. What are the cost of goods sold
and the interest expense for Sherry's Sandwich Corp.? explain by
steps.
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- "Ethical Considerations" Please respond to the following: Reflect upon the responsibilities placed on auditors by the...
- A Japanese company has a bond outstanding that sells for 93 percent of its ¥100,000 par...
- What is the difference among the principles of modularization, abstraction, encapsulation, and separation of interface and...
- An investment project costs $20,100 and has annual cash flows of $4,400 for six years. ...
- PUT IN JAVA PROGRAMMING The StockB class: Design a class named StockB that contains the following...
- Draw a DFA for the following ( ∑ = {0,1}): Set of all strings with.
- In the article from Forbes notes that the goal of a leader is not to clone...
ADVERTISEMENT