SciTronics had a total of $ 102,000 (75,000 + 27,000) of capital at year-end 2008 and earned before interest but after taxes (EBIAT) $ 16,120 (avg. tax rate = 38%) during 2008. Its return on capital was 15.8% in 2008 which represented an increase from the 8.7% earned in 2005. 4. SciTronics had $ 75,000 of owners’ equity and earned $ 14,000 after taxes in 2008.
• Prepaid expenses increased $150,000 during the year. • Accounts payable to suppliers of merchandise decreased $340,000 during the year. • Accrued expenses payable decreased $100,000 during the year. • Operating expenses include depreciation expense of $70,000. Instructions Prepare the operating activities section of the statement of cash ﬂows for the year ended November 30, 2015, for Whitlock Company, using the indirect method.
Case Study 1 a) What is the break-even point in passengers and revenues per month? Contribution margin per passenger = $ 160- $ 70 = $ 90 per passenger Contribution margin ratio = $ 90/$160 = 56.25% Passengers = $3,150,000/$ 90 per passenger = 35,000 passengers Break-even point in dollars = $ 3,150,000/0.5625 = $ 5,600,000 b) What is the break-even point in number of passenger train cars per month? Average load factor = 70% of 9090 X 0.70 = 63 seats per train car 35,000/ 63 = 556 train cars c) If Springfield Express raises its average passenger fare to $ 190, it is estimated that the average load factor will decrease to 60 percent. What will be the monthly break-even point in number of passenger cars? Contribution margin = $190 - $ 70 = $120 per passenger 90 X .60 = 54 filled seats Break-even point in passengers = $ 3,150,000/$120 = 26,250 passengers 26,250/54 = 486 train cars d) (Refer to original data.)
,Sarah L. G January 6, 2013 Written Assignment #1 1. A) $1,000 with 5% interest after 10 years gives you $1,628. Therefore, you would gain $628 in interest. B) If the interest is withdrawn each year, a total of $500 would be earned because the $1,000 investment would earn $50 of simple interest each year. C) The answers are different because if the interest is left untouched, it makes the principal amount higher each year, giving more money after 10 years.
Regarding operating gains and losses, in 2005 Tiffany realized gains of 33.8 million versus 150.7 million in losses in 2004. However, more importantly, Tiffany & Co. decreased inventories in fiscal 2005 from 175.4 million to 43.6 million. This significant reduction in inventory expense within its cash flow operations aided in Tiffany’s substantial increase in cash reserves for fiscal 2005. Increased Inventories and Operating Losses in 2006 In comparison, Tiffany’s net cash reserves in 2006 decreased to 176.5 million from 393.6 in the prior year. The company’s net cash from operations also decreased from 262.69 million to 233.58 million in 2005, a difference of 29.1 million.
Bond Interest Income of $ 160,000 was accrued at the end of year. Refunds of $ 150,000 were made in cash to terminated, non-vested participating employees. Common stocks, which are carried at a fair value of $ 500,000, were sold for $472,000. The amount of the sales price of the stock plus an additional $ 360,000 was invested in stocks. As of the end of the fiscal year, June 30, 2012, a determination has been made that the fair value of the stocks held by the pension plan had decreased by $ 60,000; the fair value of bonds had increased by $35,000.
Answer the following questions viewing each situation as being independent of the others. (1) If total assets increased $200,000 during the year, and total liabilities decreased $75,000, what is the amount of owner's equity at the end of the year? (2) During the year, total liabilities increased $230,000 and owner's equity decreased $90,000. What is the amount of total assets at the end of the year? (3) If total assets decreased $40,000 and owner's equity increased $130,000 during the year, what is the amount of total liabilities at the end of the year?
(4 points) Problem 4: We need 1,000 electric drills per year. The ordering cost for these is $100 per order and the carrying cost is assumed to be 40% of the per unit cost. In orders of less than 120, drills cost $78; for orders of 120 or more, the cost drops to $50 per unit. Should we take advantage of the quantity discount? (4 points) Problem 5: George Heinrich uses 1,500 per year of a certain subassembly that has an annual holding cost of $45 per unit.
What is the break-even point in number of passenger train cars per month? 1 car loaded by 70%, and there are 90 seats. Per month, the break-even for passengers is 35000. .7 * 90= 63 passengers, 35000/63 Break-even for number of cars 555.5555556: 556 c. If Springfield Express raises its average passenger fare to $ 190, it is estimated that the average load factor will decrease to 60 percent. What will be the monthly break-even point in number of passenger cars?
35,000 / 63 = 555.55 556 is break-even point in number of passenger train cars per month. c. If Springfield Express raises its average passenger fare to $ 190, it is estimated that the average load factor will decrease to 60 percent. What will be the monthly break-even point in number of passenger cars? To find the monthly break-even point in number of passenger cars if Springfield Express raises its average passenger fare to $190.00 and the estimation that the average load factor will decrease to 60%, the following calculation is provided: $3,150,000 / $120.000 = $26,250 is the break-even in passengers. 90 / 60% = 54 is the average passenger per car.