Forecast income statements, Financial Accounting

Assignment Help:

The forecast income statements are as follows:

448_Forecast income statements.png

WORKINGS

Sales = 50000 × 1·12 = $56000000

Variable cost of sales = 30000 × 1·12 × 0·85 = $28560000

Fixed cost of sales = 30000 × 0·15 = $4500000 (assumed to be constant)

Administration costs = 14000 × 1·05 = $14700000

Interest under debt financing = 300 + (5000 × 0·1) = 300 + 500 = $800000


Related Discussions:- Forecast income statements

Difference between npv and irr, Function to return the phase of a complex n...

Function to return the phase of a complex number 1. What is Annuity kind of cash flow? 2. What do understand by Portfolio risk? 3. What do you understand by 'Loan Am

It is started as "the MATCHING principle is very important w, What is the r...

What is the relation of profit and matching principle? Do you have a form for this kind of assignment in writting Financial Accounting?

Discuss the interest rate parity, Below is information about the spot and f...

Below is information about the spot and forward rates for three currencies against the US dollar (USD): Currency (exchange rate) Spot Rate Six-month forward rate Euro (EUR)

After-acquired property-bankruptcy, AFTER-ACQUIRED PROPERTY All property ...

AFTER-ACQUIRED PROPERTY All property acquired by the bankrupt between the commencement of bankruptcy and his discharge passes to the trustee, except as stated above and below. (

Ademption-failure legacies and gift residue-executorship, Ademption If ...

Ademption If property which has been specifically bequeathed does not belong to the testator at the time of his death, or has been converted into property of a different kind,

Determine expected future cash flows, Q. Determine expected future cash flo...

Q. Determine expected future cash flows? A rights issue will be a smart source of finance to Tirwen plc as it will reduce the gearing of the company. The current debt/equity ra

Determine the term- balancing risk and return, Determine the Balancing ris...

Determine the Balancing risk and return All decision making involves future and business decision making is no exception. Only thing certain about the future, though, is that w

Companys deduction related to limited expensing, In May of 2010, a business...

In May of 2010, a business placed in service $35,000 of property eligible for limited expensing under §179. Line 13 of Form 4562 for 2009 was $15,000. Net income before cost recove

Determine the types of hedging , Go to your assigned corporation's website ...

Go to your assigned corporation's website and access their latest annual report. Answer the following questions regarding their derivative and foreign currency transactions. 1.

Rate of return on assets, EVERLIGHT COMPANY LIMITED Comparative Balan...

EVERLIGHT COMPANY LIMITED Comparative Balance Sheet December 31, Year 1 and Year 2     Year 1       Year2

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd