A proposed new investment has projected sales of $564,000. Variable costs are 37 percent of sales, and fixed costs are $132,000; depreciation is $51,500. Prepare a pro forma income statement assuming a tax rate of 21 percent. What is the projected net income

Answers

Answer 1

Answer:

Projected net income $135,737.80

Explanation:

The computation of the projected net income is shown below:

Sales    $564,000

Less: variable cost (37% of sales) $208,680

Less: fixed cost $132,000

Less: depreciation $51,500

Earning before income and taxes $171,820

Less: tax rate at 21% -$36,082.20

Projected net income $135,737.80

Hence, the projected net income is $135,737.80


Related Questions

your firm is considering an investment that will cost $920 000 today, what is the investment's net present value

Answers

Answer:

The correct option is d. $192,369.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

Your firm is considering an investment that will cost $920,000 today. the investment will produce cash flows of $450,000 in year 1, $270,000 in years 2 through 4, and $200,000 in year 5. the discount rate that your firm uses for projects of this type is 11.25%. what is the investments net present value?

a. $378, 458

b. $540,000

c. $112,583

d. $192,369

The answer to the question is now provided as follows:

Net present value (NPV) is calculated by deducting the present value of cash outflows from the present value of cash inflows over a period of time.

Note: See the attached excel file for the calculation of the net present value (NPV).

From the attached excel file, we have:

r = Discount rate = 11.25%

Net present value (NPV) = 192,369

Therefore, the correct option is d. $192,369.

Other Questions
Line m contains the points (3, 2) and (5 , 1). Line n contains the points (2 , 7) and (1, 1) . Which statement is TRUE about lines m and n?A. The lines are parallel.B. The lines are coincident.C. Both lines intersect but are neither parallel nor perpendicular.D. The lines are perpendicular. Why do you think your new patient, Elisa, is feeling tired all the time? Explain your ideas. -3-(0.5) on a number line A common mistake when making goals relevant is writing the and chasing the wrong goals.O Trueo False I was praying for you and me to end up together, it's like wishing for rain as I stand in the desert, but I'm holding you closer than most, Cause you are my heaven... Help me with this please !! Pt 1_It would be harder to do experiments on or near jupiter for many reasons ! One being that jupiters top layers are known to be gas. However if we could hover over Jupiter and test its gravity, describe or sketch the shape of the position vs time graph for a dropped object. PT2_ The acceleration due to gravity near Jupiter is 25.95m/s. If a hammer were dropped, how fast wouldit be going after falling 20.0 meters. Show your work ! find the domain and range for the following relation.{(-3,-7),(-1,-3),(0,-1),(2,3),(4,7)} your firm is considering an investment that will cost $920 000 today, what is the investment's net present value To build the pyramids, the Egyptians may have used long inclined planes. True or False Dan's school is selling tickets to a play. On the first day of ticket sales the school sold 1 adult ticket and 6 student tickets for a total of $69. The school took in $150 on the second day by selling 7 adult tickets and student tickets How much is a student ticket? I have a simple question please answer it correctly its 10pts and brainiest. :) Galileo was seen as a brilliant thinker during his own time, and he is still viewed this way today. Why do people give such high praise tothis scientist?A: The Medici family would support only the brightest thinkers, so everyone assumes Galieo must by a genius.B:Galielo loved to teach children his lofty ideas and them encourage them to show off their knowledge.C:Galileo was making scientific discoveries at a time when no one else was.D:Galileo was able to find--and explain--simple answers for complex questions problems. "What is the theme of "The Monkey's Paw"? Give examples of how the author develops the theme through the characters and plot. You should have an example from the beginning, middle, and end."Any Answers? does the roaring twenties develop over time? cite text evidence Which statement best describes woodrow Wilsons approach at the beginning of the world war Work out 1 3/4 x 4 1/6 The diameter of the Sun is about 1.4 10^6 km. The diameter of Mars is about 7000 km.What is the approximate ratio of the diameter of the Sun to the diameter of Mars?A. 5 10^-3B. 5 10^2C. 2 10^3D. 2 10^2 A farmer finds that if she plants 50 trees per acre, each tree will yield 80 bushels of fruit. She estimates that for each additional tree planted per acre, the yield of each tree will decrease by 3 bushels. How many trees should she plant per acre to maximize her harvest? please draw a graph thank you!!! The dark shaded areas of the map show early agricultural sites and the light shaded band shows warmer climate areas. What do the dark shaded areas suggest about the agricultural revolution? A.People lived in cooler climates to hunt.B.People lived in warm climates to grow food.C.People lived mostly in Africa to farm and hunt for food.D.People lived in all parts of the world regardless of climate.