Lemon Auto Wholesalers had sales of $1,570,000 last year, and cost of goods sold represented 70...

Lemon Auto Wholesalers had sales of $1,570,000 last year, and cost of goods sold represented 70 percent of sales. Selling and administrative expenses were 12 percent of sales. Depreciation expense was $14,000 and interest expense for the year was $15,000. The firm’s tax rate is 30 percent. a. Compute earnings after taxes. b-1. Assume the firm hires Ms. Carr, an efficiency expert, as a consultant. She suggests that by increasing selling and administrative expenses to 14 percent of sales, sales can be increased to $1,620,600. The extra sales effort will also reduce cost of goods sold to 66 percent of sales. (There will be a larger markup in prices as a result of more aggressive selling.) Depreciation expense will remain at $14,000. However, more automobiles will have to be carried in inventory to satisfy customers, and interest expense will go up to $22,600. The firm’s tax rate will remain at 30 percent. Compute revised earnings after taxes based on Ms. Carr’s suggestions for Lemon Auto Wholesalers. (Round taxes and earnings after taxes to 1 decimal place.) b-2. Will her ideas increase or decrease profitability? Increase profitability Decrease profitability

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Lemon Auto Wholesalers had sales of $1,480,000 last year, and cost of goods sold represented 76...

Lemon Auto Wholesalers had sales of $1,480,000 last year, and cost of goods sold represented 76 percent of sales. Selling and administrative expenses were 13 percent of sales. Depreciation expense was $14,000 and interest expense for the year was $10,000. The firm’s tax rate is 30 percent. a. Compute earnings after taxes in Income statement form:

Lemon Auto Wholesalers had sales of $1,310,000 last year, and cost of goods sold represented 77...

Lemon Auto Wholesalers had sales of $1,310,000 last year, and cost of goods sold represented 77 percent of sales. Selling and administrative expenses were 13 percent of sales. Depreciation expense was $11,000 and interest expense for the year was $11,000. The firm’s tax rate is 30 percent. a. Compute earnings after taxes. b-1. Assume the firm hires Ms. Carr, an efficiency expert, as a consultant. She suggests that by increasing selling and administrative expenses to 15 percent of sales, sales...

Last year, Stevens Inc. had sales of $405 comma 000, with a cost of goods sold...

Last year, Stevens Inc. had sales of $405 comma 000, with a cost of goods sold of $110 comma 000. The firm's operating expenses were $ 133 comma 000, and its increase in retained earnings was $53 comma 000. There are currently 22 comma 100 common stock shares outstanding and the firm pays a $1.57 dividend per share. a. Assuming the firm's earnings are taxed at 34 percent, construct the firm's income statement. b. Compute the firm's operating profit margin....

Last year, Dollar General had $7,000 in sales, and cost of goods sold was $4,000. Depreciation...

Last year, Dollar General had $7,000 in sales, and cost of goods sold was $4,000. Depreciation expenses totaled $1000 and interest expense was $1400. If the tax rate is 25%, what is the net profit margin for Dollar General? What is its NOPAT margin?

(Evaluating profitability) Last year, Stevens Inc. had sales of $398,000, with a cost of goods sold...

(Evaluating profitability) Last year, Stevens Inc. had sales of $398,000, with a cost of goods sold of $110,000. The firm's operating expenses were $134,000, and its increase in retained earnings was $57,000. There are currently 21,800 common stock shares outstanding and the firm pays a $1.61 dividend per share. a. Assuming the firm's earnings are taxed at 34 percent, construct the firm's income statement. b. Compute the firm's operating profit margin. c. What was the times interest earned? a. Assuming...

Last year, Stevens Inc. had sales of$404 comma 000 with a cost of goods sold of...

Last year, Stevens Inc. had sales of$404 comma 000 with a cost of goods sold of $120 comma 000. The firm's operating expenses were $129 comma 000 and its increase in retained earnings was $60 comma 000. There are currently 23 comma 000 common stock shares outstanding and the firm pays a $1.59 dividend per share. a. Assuming the firm's earnings are taxed at 34 percent, construct the firm's income statement. b. Compute the firm's operating profit margin. c. What...

Last year, HCC, Inc had Sales of $500,000, cost of goods sold of $290,000, ending accounts...

Last year, HCC, Inc had Sales of $500,000, cost of goods sold of $290,000, ending accounts receivable of $75,000 and ending inventory balance of $25,000. The company’s inventory turnover was closest to: A. 12.08 B. 11.60 C. 5.80 D. 11.15 Granger Corp had $180,000 in Sales on account last year and offered a 10% discount. The ending accounts receivable balance was $14,000, after bad debt expense of $5,000. The company’s average collection period (DSO) was closest to: A. 20.3 days...

Butterfly Tractors had $17.50 million in sales last year. Cost of goods sold was $8.70 million,...

Butterfly Tractors had $17.50 million in sales last year. Cost of goods sold was $8.70 million, depreciation expense was $2.70 million, interest payment on outstanding debt was $1.70million, and the firm’s tax rate was 30%. a. What was the firm’s net income? (Enter your answers in millions rounded to 2 decimal places.) b. What was the firm’s cash flow? (Enter your answers in millions rounded to 2 decimal places.) c. What would happen to net income and cash flow if...

Butterfly Tractors had $21.50 million in sales last year. Cost of goods sold was $9.50 million,...

Butterfly Tractors had $21.50 million in sales last year. Cost of goods sold was $9.50 million, depreciation expense was $3.50 million, interest payment on outstanding debt was $2.50 million, and the firm’s tax rate was 30%. a. What was the firm’s net income and net cash flow? (Enter your answers in millions rounded to 2 decimal places. For example, for $3.92 million, enter "3.92", not "3920000") Net income $ million Net cash flow $ million b. What would happen to net income...

Butterfly Tractors had $15.00 million in sales last year. Cost of goods sold was $8.20 million,...

Butterfly Tractors had $15.00 million in sales last year. Cost of goods sold was $8.20 million, depreciation expense was $2.20 million, interest payment on outstanding debt was $1.20 million, and the firm’s tax rate was 21%. a. What was the firm’s net income? (Enter your answers in millions rounded to 2 decimal places.) b. What was the firm’s cash flow? (Enter your answers in millions rounded to 2 decimal places.) c. What would happen to net income and cash flow...

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