Accounting and legal fees $150,000 Advertising $125,000 Freight-out $65,000 Interest $80,000 Loss on sale of long-term investments $35,000 Officers’ salaries $200,000 Rent for office space $160,000 Sales salaries and commissions $110,000 One half of the rented premises are occupied by the sales department. How much of the expenses listed above should be included in Perry’s general and administrative expenses for 201X? (TCO C) An income statement shows “income before income taxes and extraordinary items” in the amount of $3,000,000. The income taxes payable for the year are $1,500,000, including $260,000 that is applicable to an extraordinary gain. Thus, what is the “income before extraordinary items”?
Week 10 Problems 1. Given the following information: Total assets $100,000 Debt (12% interest rate) $80,000 Equity $20,000 Variable costs of production $14 per unit Fixed cost of production $27,000 Units Sold 12,300 Sales price $19.75 per unit What happens to operating income and net income if output is increased by 10 percent? Verify your answer. Revenue: $19.75*(12,300) = $242,925 Expenses: $14*(12,300) = $172,200 Operating Income: $242,925-$172,200 = $70,725 Net Income: $72,725- (.12*$80,000) = $63,125 With 10% increase in revenue: Revenue: $19.75*(13,530) = $267,217.50 Expenses: $14*(13,530) = $189,420 Operating Income: $267,217.50- $189,420 =$77,797.50 Net Income: $77,797.50 - (.12*$80,000) =$38,197.50 Operating Income rose from $70,725 to $77,797.50 for a 91% increase. Net income dropped from $63,125 to $38,197.50 which cuts losses by $24,927.50.
DSO = Receivables / Ave. sales per day Receivables= DSO * Ave. sales per day = 20 * 20,000 Receivables= $400,000 (3-2) Debt Ratio: Vigo Vacations has an equity multiplier of 2.5. The company’s assets are financed with some combination of long-term debt and common equity. What is the company’s debt ratio? Debt ratio = 1 – (1 / Equity multiplier) Debt ratio = 1 – (1/2.5) = 1 - .40 = .60 Debt ratio = 60% (3-3) Market/Book Ratio: Winston Washers’s stock price is $75 per share. Winston has $10 billion in total assets.
The asset turnover will increase when their profit margin increases, the high profit margin is because they are currently expanding . 2. To a certain extent, the high level of popularity was from their effective market analysis. In 2012 superstyles spent 20% of their profits on marketing. Compared to the industry average superstyles spends 50% more on marketing, however I think it is very useful as they are expanding and don’t have the brand image and reputation yet.
Managerial Accounting 1B (Power Time and Haltom Business Case Study) A Powertime, Inc., produces and sells electric lawn mowers for $250 each. The variable costs of each mower total $160 while total monthly fixed costs are $22,500. Current monthly sales are $100,000. The company is considering a proposal that will increase the selling price by 10%, increase total fixed costs by 10% and increase unit sales to 500 units per month. Sales units Sales Selling price: $250 100,000 400 Selling price: $250(0.1)= $275 137500 Variable cost: $160 variable cost: $160 Fixed cost: 22500 Fixed cost: 22,500(0.1)= 24750 1.
Keurig Marketing Strategy Target Market While Keurig decided whether or not to launch their product into the at-home market, they did some market research to and looked at the statistics for the United States retail at-home coffee market. The 12 found represented an enormous opportunity for Keurig. In 1996, gourmet coffee sales were at $2,200 million. Four years later, in 2000, the gourmet coffee sales had increased by 40 percent to $3,100 million. Also, in 2000, approximately 320 million pounds of gourmet coffee were sold in the United States, a 25.5 percent increase in pound consumption by volume from 1996.
Not enough money and too much stress lowers the quality of life that people have, and their standards of living also drop, as they are forced to get by with cheap, low-quality items (Nickels, McHugh & McHugh, 2010). Walmart has changed how the retailer and the manufacturer negotiate prices. The manufacturer used to be the one to tell the retailer, "I can make this for you for this much." But Walmart has become so big, so important, that now they
Industry sales of children and juvenile books for 2009 were $3.2 billion (AAP, 2009). Since the staff and employees are X and Y’ers with young families, adding these titles to the product portfolio is a sound strategic move. The demographics give CanGo insight into the most popular titles and the capital expenditure for additional space is addressed by the ASRS systems. While hardcopy book sales declined in 2009, sales of e-books increased. In fact there are 500,000 book titles available for electronic readers and according to the AAP e-book sales increased by 176% in 2009 and Audio book sales totaled $192 million (AAP, 2009) making the addition of e-books and Audio books to their portfolio a logical strategic move.
Write-Up for Case # 1 Catalog Marketing Case Submitted by Leelawati Nagar Arpitha Shetty Maha Almubarak CASE OVERVIEW XYZ Company sells products on-line, and they are planning a two year catalog mailing campaign. They have a database of 1000 customers who purchased last year, and a second database of 10,000 potential customers who have never purchased. Of the 1000 customers who recently purchased, the average purchase amount was $40.00 Assume for the moment that this amount is constant over time and across future purchasing customers as well. Without receiving a catalog, a customer who already purchased has a 15% probability of purchasing in any of the following years. A potential customer who has never purchased before has a 3% chance of purchasing without receiving a catalog.
The growth rate of CA sales outpaced that of the total adhesives market, growing 20% annually. The dispensing equipment were the firm's “Question Mark" portfolio. Although 30% of IPG sales were generated by the equipment sales and the Systems Division had built a reputation for high quality equipment, the profitability of equipments was still lower than the adhesive products. Figure 1. BCG Framework for Loctite's Products Star Cyanoacrylates(CAs) Question Mark Adhesive Dispensing Equipment Cash Cow Anaerobics Dog N/A IPG Product Portfolio : Monetary Resource Allocation The priority of resource allocation is to invest in “Cash Cow” and “Star” portfolios and invest the balance to “Question Mark” portfolio.