Compute the? firm 2016 net operating income

Assignment Help Finance Basics
Reference no: EM132381278

In? 2016, the Allen Corporation had sales of $62 ?million, total assets of $47 ?million, and total liabilities of $16 million. The interest rate on the? company's debt is 5.6 ?percent, and its tax rate is 35 percent. The operating profit margin is 10 percent.

a. Compute the? firm's 2016 net operating income and net income.

b. Calculate the? firm's operating return on assets and return on equity.? (Hint: You can assume that interest must be paid on all of the? firm's liabilities.)

Reference no: EM132381278

Questions Cloud

What is the current book value of assets : Delta Company purchased some fixed assets four years ago at a cost of $248,000. It no longer needs these assets, so it is going to sell them today
Cash plus marketable securities : Brenmar's current assets equal $1.7 ?million, its current liabilities equal $299,500?, and it has $101,100 in cash plus marketable securities.
Determining the? firm debt? ratio : Dearborn Supplies has total sales of $204 ?million, assets of $93 ?million, a return on equity of 29 ?percent, and a net profit margin of 7.8 percent.
What is the maximum level of accounts receivable : What is the maximum level of accounts receivable that ALei can carry and have a 35?-day average collection? period?
Compute the? firm 2016 net operating income : a. Compute the? firm's 2016 net operating income and net income.
What will the aftertax salvage value be : The tax rate is 25 percent and the discount rate is 10 percent. If the equipment is sold today for $215,000, what will the aftertax salvage value be?
What is the financial break-even point : Fixed assets are depreciated using straight-line depreciation over the project's life. What is the financial break-even point?
How many units must be sold to earn operating income : Compute the new operating income if sales are 10% higher than expected. How many units must be sold to earn operating income of $187,800?
Estimated cash inflows and cash outflows : The present value of all other estimated cash inflows and cash outflows which are related to this project is $20,000. Should the investment be undertaken?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the amount of pelameds interest tax

Suppose the corporate tax rate is 40%. Consider a firm that earns $1000 before interest and taxes each year with no risk. The firm’s capital expenditures equal its depreciation expenses each year, and it will have no changes to its net working capita..

  Differentiate lifebuoy from the competition

Why did Unilever not use the qualitative and research to differentiate Lifebuoy from the competition. How did Unilever use qualitative and quantitative facts

  The asset will be depreciated on a straight line basis to

blain corporation is considering the purchase of a machine which has an expected 8 year life and costs 20000. the

  Show the effects of this action on the bs

1 Assume Andursco's common stock is quoted on the OTCBB at 159/ 7/19. The VP of finance recommends a 4-for -1 split to increase trading activity. show the effects of this action on the BS, and on a shareholder of the company.'

  Investment advisor misleads clients

This question is from Finance and it explains a scenario where an investment advisor misleads his clients in investing in a company's shares whose prices have been falling.

  What is the average expected inflation

Assume that expected rates of inflation over the next 5 years are 4 percent, 7 percent, 10 percent, 8 percent, and 6 percent, respectively. What is the average expected inflation rate over this 5-year period?

  What is the current price of the bond

A $1,000 par value bond was issued 15 years ago at a 12 percent coupon rate. It currently has 15 years remaining to maturity.

  Find the amount of short-term capital gain

In August 2007, John Titus bought 200 shares of a listed stock for $25,000. In September 2007, Titus sold this stock for its fair market price of $28,000 to the partnership of Black, Blue, and Titus.

  Evaluate soundness of strategic shift away from production

Do American companies like LS&C that transfer production to lower-wage countries hurt or help the economy of the United States?

  Hat are interest cost and total amount due on six month loan

Suppose you borrow $1,000 at 6 percent and will repay it in one payment at the end of one year. Use the simple interest formula to determine the amount.

  Pertain to a noncancelable lease agreement

Assume that the following facts pertain to a noncancelable lease agreement between Fifth-Third Leasing Company and Bob Evans Farms, a lessee.

  Decision making models and preferred stock

Given two projects, what are the decision models that you can use to make a decision as to which project you should accept? Which is the better?

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