Question

In: Finance

Fresno Salads has current sales of $6,000 and a profit margin of 6.5 percent. The firm...

Fresno Salads has current sales of $6,000 and a profit margin of 6.5 percent. The firm estimates that sales will increase by 4 percent next year and that all costs will vary in direct relationship to sales. What is the pro forma net income?

A. $303.33

B. $327.18

C. $405.60

D. $438.70

E. $441.10

Solutions

Expert Solution

Net income = Current sales * Profit margin * (1 + Increase sales)

Net income = $6,000 * 0.065 * (1 + 0.04)

Net income = $405.60

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

A firm has a profit margin of 15 percent on sales of $20,000,000. If the firm...
A firm has a profit margin of 15 percent on sales of $20,000,000. If the firm has debt of $7,500,000, total assets of $22,500,000, and an after-tax interest cost on total debt of 5 percent, what is the firm’s ROA?
A firm has Net income- $195,000 Profit Margin- 10.0% Accounts Receivable- $100,000 Percent of Sales On...
A firm has Net income- $195,000 Profit Margin- 10.0% Accounts Receivable- $100,000 Percent of Sales On Credit- 85% Fill out the rest of the information below, show all work and calculations Sales-? Credit Sales-? Receivables Turnover- ? Times Days sales in Receivables- ? Days
The Meat Market has $800,000,000 in sales. The profit margin is 5 percent and the market...
The Meat Market has $800,000,000 in sales. The profit margin is 5 percent and the market equity of the company is $200,500,000. What is the price-earnings ratio?
A firm has a profit margin of 2% and an equity multiplier of 2.3. Its sales...
A firm has a profit margin of 2% and an equity multiplier of 2.3. Its sales are $310 million, and it has total assets of $186 million. What is its ROE? Do not round intermediate calculations. Round your answer to two decimal places.
Gwen's Pastry Shop has annual sales of $238,000, a profit margin of 6 percent, and a...
Gwen's Pastry Shop has annual sales of $238,000, a profit margin of 6 percent, and a return on assets of 7.7 percent. The firm has      in total assets.
your firm has a constant profit margin of 5 percent and adividend payout ratio of...
your firm has a constant profit margin of 5 percent and a dividend payout ratio of 35 percent. currently, sales, net income, and retained earnings are 27400, 2350, 4400, respectively. if sales are expected to rise by 5 percent next year, what will be the pro forma retained earnings?A) 5264 B) 5721 C )6004 D) 1604 E) 864
Determine the company’s margin of safety as a percent of current sales.
Liu Inc. has sales of $48,500,000, and the break-even point in sales dollars is $31,040,000. Determine the company’s margin of safety as a percent of current sales
Determine the company’s margin of safety as a percent of current sales.
Rachel Company has sales of $400,000, and the break-even point in sales dollars is $300,000. Determine the company’s margin of safety as a percent of current sales.
Alpha Computer has sales of $618,900, a profit margin of 13.2 percent, a total asset turnover...
Alpha Computer has sales of $618,900, a profit margin of 13.2 percent, a total asset turnover rate of 1.54, and an equity multiplier of 1.06. What is the return on equity? Show your calculations! 18.91 percent B. 12.67 percent C. 18.28 percent D. 21.55 percent Good Foods has net income of $82,490, total equity of $518,700, and total assets of $1,089,500. The dividend payout ratio is .30. What is the internal growth rate? Show your calculations! 2.32 percent 3.57 percent...
Coconut, Inc. has sales of $610,400, total equity of $170,000, a profit margin of 10 percent...
Coconut, Inc. has sales of $610,400, total equity of $170,000, a profit margin of 10 percent and a debt-equity ratio of 0.8. What is the return on assets? 23.70 percent 21.34 percent 19.95 percent 25.50 percent 4 points    QUESTION 22 Blueberry, Inc. has total assets of $642,000. There are 60,000 shares of stock outstanding with a market value of $42 a share. The firm has a profit margin of 7 percent and a total asset turnover of 1.36. What...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT