How much is the increase in retained earnings

Assignment Help Accounting Basics
Reference no: EM133129617

Question - Bulldogs Inc. recently reported net income of P5,000,0000.  The firm has P40,000,000 total assets. Next year, National Inc. is forecasting a 20% increase in sales. The firm also estimates that if sales increase by 20%, spontaneous liabilities will increase by P950,000. The retention ratio is maintained at 75%. If the sales increase, the profit margin will remain at its current level. The company is operating at full capacity. How much is the increase in retained earnings that will contribute to cover the increase in asset?

Reference no: EM133129617

Questions Cloud

Determine the break-even point in sales units : Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $110 per unit
How much debt should be incurred : ABC and XYZ Partnership has $3 million in total assets, $1.65 million in equity, and a $500,000 capital budget. How much debt should be incurred
What is the amount of discount on these bonds at issuance : Stanford issues bonds dated January 1, 2019, with a par value of $245,000. What is the amount of discount on these bonds at issuance
What is the new par value of each shares : The total legal capital of Bulldogs Inc. is P420,000,000 and total number of outstanding shares of 2,400,000. What is the new par value of each shares
How much is the increase in retained earnings : If sales increase, the profit margin will remain at its current level. The company is operating at full capacity. How much is the increase in retained earnings
How much is the sales volume variance : Bulldogs Inc. expected to sell in October 2021 1,000 units of Dell laptops with a purchase cost per unit of PHP55,000, How much is the sales volume variance
What is the average amount of accounts receivable : Bulldogs Inc. sells on term 3/20, net 40. Total sale for the year are P1,200,000 on which 40% is cash sales. What is the average amount of accounts receivable
Discuss the role of unconscious bias : Why do certain population groups experience differences in care? Discuss the role of unconscious bias, discrimination, and structural racism in health care. Des
What is the approximate annualized yield on a 6-month : (i) What is the approximate annualized yield on a 6-month Treasury bill that is sold at £99 in the primary market? Show your calculations.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How many minutes would be required to meet the demand

How many minutes would be required to meet the demand for all three products

  Calculate the amount that can be borrowed

Calculate the amount that can be borrowed under each of the following circumstances: A promise to pay $90,000 in seven years

  What is Phil and Susan AGI

Susan has wages of $34,000 in 2018. Phil does not work due to a disability, but he is a buyer and seller of stocks. What is Phil and Susan AGI

  Prepare a schedule showing the employer''s total cost

Prepare the journal entries to record the factory, sales, and administrative payrolls including the employer's payroll taxes.

  Calculate the revenue to be recognized and gross profit

The contract is for $10 million with progress payments being made by MB Limited as the construction proceeds. Calculate the revenue to be recognized

  Why is capital budgeting such an important process

Why is capital budgeting such an important process? Why are capital budgeting errors so costly? Explain.

  Assignment on technology and innovation

Analyze major technological innovations from the last five (5) years to determine the most significant innovation for entrepreneurs. Provide specific examples of how this new technology has encouraged new business creation or growth.

  Prepare a multiple-step income statement of Ocean City

Invoices representing Tk. 40,000 of sales during the year have not been recorded as of June 30. Prepare a multiple-step income statement of Ocean City

  Compare and contrast the analytic tree approach with the

compare and contrast the analytic tree approach with the fault tree analysis approach. consider the pros and cons of

  What was the company net income or loss for the period

The owner withdrew $30,000 during the period for personal use. What was the company's net income or loss for the period

  What variable costing vs absorption costing income statement

rovide income statements in both variable costing and absorption costing formats for an initial period and its successive period in a case

  What will be the accounts payable balance

Today is January 1. Bozo's Bakery, makers of Smack-in-the-Face Cream Pies, is examining next year's sales forecasts to determine if it will be necessary.

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