Question
In: Finance
Year Sales Net Income After Tax 1992 $2,000,000 $240,000 1993 2,750,000 338,000 1994 3,200,000 384,000 1995...
| Year | Sales | Net Income After Tax |
|---|---|---|
| 1992 | $2,000,000 | $240,000 |
| 1993 | 2,750,000 | 338,000 |
| 1994 | 3,200,000 | 384,000 |
| 1995 | 5,000,000 | 575,000 |
| 1996 | 5,7000,000 | 600,000 |
| 1997 | 6,2000,000 | 713,000 |
| 1998 | 7,3000,000 | 803,000 |
| 1999 | 8,5000,000 | 860,000 |
| 2000 | 9,1000,000 | 900,000 |
| 2001 | 10,3000,000 | 912,720 |
What is the compound rate of growth for the firm's sales and net income after-tax?
Solutions
Expert Solution
Please refer to below spreadsheet for calculation and answer. Cell reference also provided.
Cell reference -
jeff jeffy answered 1 year agoRelated Solutions
Balance Sheet Problem 1992 1993 1994 Annual Sales Growth (over prior yr) + 1% 0% +1%...
Balance Sheet Problem 1992 1993 1994 Annual Sales Growth (over
prior yr) + 1% 0% +1% Current Ratio 3.5X 2X 1.2X Average Collection
Period 25 days 30 days 55 days
What is happening to liquidity? What are some follow-up
questions you would ask?
Exhibit 1 Flight Plan Consulting, Inc. Sales and Earnings Trend Year Sales Net Income After-Tax...
Exhibit 1
Flight Plan Consulting, Inc.
Sales and Earnings Trend
Year
Sales
Net Income After-Tax
EPS
1992
$2,000,000
$240,000
$0.60
1993
2,750,000
338,000
0.84
1994
3,200,000
384,000
0.96
1995
5,000,000
575,000
1.44
1996
5,700,000
600,000
1.50
1997
6,200,000
713,000
1.78
1998
7,300,000
803,000
2.00
1999
8,500,000
860,000
2.15
2000
9,100,000
900,000
2.25
2001
10,300,000
912,720
2.28
Exhibit 2
Flight Plan Consulting, Inc.
Balance Sheet
December 31, 2001
($000’s)
Current Assets
$1,500
Current Liabilities
$400
Fixed Assets
1,500
Long-Term Debt...
Exhibit 1 Flight Plan Consulting, Inc. Sales and Earnings Trend Year Sales Net Income After-Tax...
Exhibit 1
Flight Plan Consulting, Inc.
Sales and Earnings Trend
Year
Sales
Net Income After-Tax
EPS
1992
$2,000,000
$240,000
$0.60
1993
2,750,000
338,000
0.84
1994
3,200,000
384,000
0.96
1995
5,000,000
575,000
1.44
1996
5,700,000
600,000
1.50
1997
6,200,000
713,000
1.78
1998
7,300,000
803,000
2.00
1999
8,500,000
860,000
2.15
2000
9,100,000
900,000
2.25
2001
10,300,000
912,720
2.28
Exhibit 2
Flight Plan Consulting, Inc.
Balance Sheet
December 31, 2001
($000’s)
Current Assets
$1,500
Current Liabilities
$400
Fixed Assets
1,500
Long-Term Debt...
After-Tax Profit Targets Olivian Company wants to earn $300,000 in net (after-tax) income next year. Its...
After-Tax Profit Targets
Olivian Company wants to earn $300,000 in net (after-tax) income
next year. Its product is priced at $400 per unit. Product costs
include:
Direct materials
$120.00
Direct labor
$88.00
Variable overhead
$20.00
Total fixed factory overhead
$450,000
Variable selling expense is $16 per unit; fixed selling and
administrative expense totals $300,000. Olivian has a tax rate of
40 percent.
Required:
1. Calculate the before-tax profit needed to
achieve an after-tax target of $300,000.
$
2. Calculate the...
After-Tax Profit Targets Olivian Company wants to earn $300,000 in net (after-tax) income next year. Its...
After-Tax Profit
Targets Olivian Company wants to earn $300,000 in net
(after-tax) income next year. Its product is priced at $250 per
unit.
Product costs include:
Direct materials $75.00
Direct labor $55.00
Variable overhead $12.50
Total fixed factory overhead $445,000
Variable selling expense is $10 per unit; fixed selling and
administrative expense totals $295,000. Olivian has a tax rate of
40 percent.
Required: 1. Calculate the before-tax profit needed to achieve
an after-tax target of $300,000. $
2. Calculate the...
After-Tax Profit Targets Olivian Company wants to earn $360,000 in net (after-tax) income next year. Its...
After-Tax Profit Targets
Olivian Company wants to earn $360,000 in net (after-tax) income
next year. Its product is priced at $350 per unit. Product costs
include:
Direct materials
$105.00
Direct labor
$77.00
Variable overhead
$17.50
Total fixed factory overhead
$410,000
Variable selling expense is $14 per unit; fixed selling and
administrative expense totals $260,000. Olivian has a tax rate of
40 percent.
Required:
1. Calculate the before-tax profit needed to
achieve an after-tax target of $360,000.
$
2. Calculate the...
After-Tax Profit Targets Olivian Company wants to earn $420,000 in net (after-tax) income next year. Its...
After-Tax Profit Targets Olivian Company wants to earn $420,000
in net (after-tax) income next year. Its product is priced at $275
per unit. Product costs include: Direct materials $90 Direct labor
$65 Variable overhead $16 Total fixed factory overhead $440,000
Variable selling expense is $14 per unit; fixed selling and
administrative expense totals $290,000. Olivian has a tax rate of
40 percent. Required:
1. Calculate the before-tax profit needed to achieve an
after-tax target of $420,000.
2. Calculate the number...
Compaq Ltd has a net income after tax of $2 000 000 for the year ended...
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