Assume that in 2009 sales increase by 10 percent and cost

Assignment Help Accounting Basics

Reference no: EM13597172

One size fits all casket co income statement for 2008 is as follows

Sales................................................$3,000,000
Cost of goods sold............................2,100,000
Gross profit.......................................900,000
Selling and administrative expense......450,000
Operating profit..................................450,000
Interest expense.................................75,000
Income before taxes...........................375,000.
Taxes (30%).......................................112,500
Income after taxes.............................. $262,500

a. Compute the profit margin for 2008.

b. Assume that in 2009 sales increase by 10 percent and cost of goods sold increases by 25 percent. The firm is able to keep all other expenses the same. Once again, assume a tax rate of 30 percent on income before taxes, what are income after taxes and the profit margin for 2009?

Reference no: EM13597172

Questions Cloud

How do you account for the clean up fee in this scenario : how do you account for the clean up fee in this scenario she also says that she has a booth reservation and he would

During fiscal year had net income of 100000 and 50000 : during fiscal year had net income of 100000 and 50000 shares of cs and 10000 shares of ps outstanding. declared and

Calculate the cost of the ending inventory and the cost of : yount company reports the following for the month of june. date explanation units unit cost total cost june 1 inventory

A tank contains both nitrogen and hydrogen gas if the : a tank contains both nitrogen and hydrogen gas. if the partial pressures are 190 mm hg and 303 mm hg respectively what

Assume that in 2009 sales increase by 10 percent and cost : one size fits all casket co income statement for 2008 is as

Prepare an income statement for the division using the : assume you work as an accountant in the merchandising division of a large public company that makes and sells athletic

Compute ending inventory at september 30 using fifo lifo : boarders sells a snowboard xpert that is popular with snowboard enthusiasts. below is information relating to boarders

Listor company made 3800 bookshelves using 23320 board feet : listor company made 3800 bookshelves using 23320 board feet of wood costing 290000. the companys direct materials

A reaction mixture initially contains 050 m ch4 and 075 m : consider the following reactionch4g 2 h2sg ----gt cs2g 4 h2ga reaction mixture initially contains 0.50 m ch4 and 0.75

User Account

All Pages