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Question;Q19. Using the data below prepare a common size income statement?;($ 000);($ 000);Sales revenue;30,000;Cost of goods sold;21,000;Gross profit;9,000;operating expenses;Selling expenses;3,000;General and admin. expenses;1,800;Lease expenses;200;Depreciation expenses;1,000;Total operating expenses;6,000;Operating profit;3,000;Interest;1,000;EBT;2,000;Tax (40% of EBT);800;Net profit;1,200;Q20. Use the data given below to;calculate the values for the following;sales;$40,000,000;Gross Profit Margin;80%;Operating Profit Margin;35%;Net Profit Margin;8%;Return on total assets;16%;Return on common equity;20%;Total asset turnover;2;Average collection period;62.2 days;Required;a) Gross profit;b) Cost of goods sold;c) Operating profit;d) Operating expenses;e) Earnings available for common shareholders;f) Total assets;g) Total common stock equity;h) Accounts receivable;It is a 365 days year, assume all sales are on credit basis.;Q21. Euro Designs, Inc., expects sales during 2010 to rise from the 2009;level of $3.5 million to $3.9 million. Because of a scheduled large loan;payment, the interest expense in 2010 is expected to drop to $325,000. The firm;plans to increase its cash dividend payments during 2010 to $320,000. The;company?s year-end 2009 income statement is below.;($ 000);Sales;3,500;Cost of goods sold;1,925;Gross profit;1,575;operating expenses;420;Operating profit;1,155;Interest;400;EBT;755;Tax (40% of EBT);302;Net profit;453;Cash Dividend;250;Addition to retained earnings;203;Use the percent-of-sales method to prepare a;2007 pro forma income statement for Euro Designs, Ltd.

 

Paper#44956 | Written in 18-Jul-2015

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