A firm has the following accounts and financial data for 2015, use these data to calculate the firm’s earning per share (EPS) for 2015?
|
Accumulated Depreciation (2014) |
$ 450,000 |
Selling and Marketing Expense |
$ 105,000 |
|
Sales Revenue |
$ 925,000 |
Tax Rate |
(34%) |
|
Accounts Receivables |
$ 600 |
Number of common shares outstanding |
100,000 |
|
Interest Expense |
$ 55,000 |
Cost of Goods Sold |
$ 50,000 |
|
Accumulated Depreciation (2015) |
$ 575,000 |
Research and Development Expense |
$ 50,000 |
|
General and Administrative Expense |
$ 120,000 |
Marketable Securities |
$ 147,000 |
|
Long-Term Debt |
$70,000 |
Preferred Stock Dividends |
$ 77,000 |
In: Finance
Total sales of ABC Corp. is $100 M and net income is $11.5M. The manager belives that eliminating the group marginal customers which constitutes 10% of the total sales, will increase the performance of the company. Distribute the revenue and expenses of BC Corp. between the marginal customers and credible customers, based on income statement, indicate whether the company should eliminate marginal customers or not, in terms of net profit margin.
Percentage of sales total/ fixed/ variable
Cost of sales (%) 70/ - /70
Overhead cost (%) 15/ 8/ 7
Collection exp.(%) 1 /-/ 1
Other exp. (%) 2.5/2/ 0.5
In: Finance
In: Finance
Service revenue $51,000
Accounts receivable $12,000
Accounts payable $6,000
Building rental expense $27,000
Notes payable $15,000
Common stock $30,000
Retained earnings ?
Equipment $48,000
Insurance expense $3,000
Supplies $3,600
Supplies expense $600
Cash $6,000
Dividends $1,800
In: Finance
The marginal product of labor is defined as A. the additional output that results when one more worker is hired, holding all other resources constant. B. the additional number of workers required to produce one more unit of output. C. the cost of hiring one more worker. D. the additional sales revenue that results when one more worker is hired. In the United States, government policies with respect to monopolies and collusion are embodied in A. common law, which the United States adopted from English law. B. the U.S. Constitution. C. antitrust laws. D. the Supreme Court.
In: Economics
Case:
Questions: 1. How does the Securities and Exchange Commission assist in preventing fraud? 2. You are a manager in the sales department of a company and you are anticipating a promotion to vice president of sales if your division maintains good performance. You received the sales budget for the company and realized that top management has set revenue targets for your division that are realistically unreachable. What actions would you take to satisfy management’s expectations and still maintain your integrity? Demonstrate through the use/preparation of actual sales budgets. Compare and contrast. Identify management’s goals and your recommendations.
In: Accounting
"The A.M.I. Company is considering installing a new process machine for the firm's manufacturing facility. The machine costs $519,000 installed, will generate additional revenue of $83,000 per year, and will save $52,000 per year in labor and material costs. The machine will be financed by a $203,000 bank loan repayable in three equal annual installments with a 4% interest rate. The machine will be depreciated using seven-year MACRS. The useful life of the machine is 10 years when the machine will be sold for $24,000. The marginal tax rate is 30%. Compute the IRR of the investment. Enter your answer as a percentage between 0 and 100."
In: Accounting
When the government of Tradeland decides to impose arn import quota on foreign cars, three proposals are sug gested: (1) Sell the import licences in an auction. (2) Distribute the licences randomly in a lottery. (3) Let peo- ple wait in line and distribute the licences on a first- come, first-served basis. Compare the effects of these policies. Which policy do you think has the largest deadweight losses? Which policy has the smallest deadweight losses? Why? (Hint: the government's other ways of raising tax revenue themselves all cause dead- weight losses.)
In: Economics
|
Product A |
Product B |
|
|
Initial Investment: |
||
|
Cost of Equipment (zero salvage value) |
$170,000 |
$380,000 |
|
Annual Revenues and costs: |
||
|
Sales Revenue: |
$250,000 |
$350,000 |
|
Variable Expenses: |
$120,000 |
$170,000 |
|
Depreciation Expense: |
$34,000 |
$76,000 |
|
Fixed out-of-pocket operating costs: |
$70,000 |
$50,000 |
|
Item |
Periods |
Amount of Cash Flows |
|
Product A: |
||
|
Purchase of equipment |
$170,000 |
|
|
Net annual cash inflows (above) |
$60,000 |
|
|
Net Present Value: |
||
|
Product B: |
||
|
Purchase of equipment |
$380,000 |
|
|
Net annual cash inflows (above) |
$130,000 |
|
|
Net Present Value: |
|
What would the amount of cash flows be?
In: Accounting
Many employees do not like having a position dealing with numbers. However, the video this week is a good illustration of the connection between numbers (dollars!) and the relationship between a small business and the town in which it resides. Marty Doepke states that Pop's is the largest source of tax revenue for the very small town of Arcadia, Oklahoma. Speak on the importance of the accounting and finance functions of business. Be creative in your responses, but address the importance of having managers who appreciate this function, even if they are not strictly accounting/finance types. Tie your answer back to at least one principle you learned from this week's readings.
In: Economics