How much must sales increase before Firm Y needs

Assignment Help Accounting Basics
Reference no: EM133017443

Question - The following is Firm Y's current statement of comprehensive income. If the firm is currently operating at 75% capacity, how much must sales increase before Firm Y needs to buy new fixed assets?

Sales $50,000

CoGS 30,000

EBDIT 20,000

Depreciation 10,000

EBIT 10,000

Interest expense 5,000

Taxable income 5,000

Taxes (35%) 1,750

Net Income 3,250

Dividends 975

Reference no: EM133017443

Questions Cloud

Determine the amount of overhead that would be allocated : Determine the amount of overhead that would be allocated to the proposed job if direct labor hours is used as the volume-based cost driver
What is the investment profitability index : An additional after-tax salvage value of €50 million in Year 7. The required rate of return is 10 percent. What is the investment's Profitability Index
Determine the standard labor time per finished unit : Consider the following data and assume that all materials purchased during the period were used in production. Determine standard labor time per finished unit
Determine the goodwill arising on the acquisition of organ : Piccolo Ltd acquired 20% of Organ Ltd on 1 July 2013 for $234,000. Determine the goodwill arising on the acquisition of Organ
How much must sales increase before Firm Y needs : If the firm is currently operating at 75% capacity, how much must sales increase before Firm Y needs to buy new fixed assets
Compare the two companies : Compare the two companies. What conclusions could you make regarding the use of operating leverage employed by the two firms
What is your expected starting salary : If you are accepted into medical school, then your starting salary when you graduate will be $300,000 per year. What is your expected starting salary
Explain the rule for translating the financial statements : Explain the rule for translating the Financial Statements of Foreign Operations from Functional Currency to Presentation Currency
Calculate the cash payments to suppliers during the year : Stock write-offs owing to water damage caused by melting ice in the Antarctic $5,000. Calculate the cash payments to suppliers during the year

Reviews

Write a Review

Accounting Basics Questions & Answers

  Journalize the entry to record the payroll tax

1. Journalize the entry to record the payroll for the week of December 10. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0". 2. Journalize the entry to record the payroll tax expense incurred for the..

  Leon plans to save 300 per month towards retirement at the

leon plans to save 300 per month towards retirement at the beginning of each month. how much would he have at the end

  By what amount should the bond issue proceeds

On March 1, 2016, E Corp. issued $1,000,000 of 10% nonconvertible bonds at 107, due on February 28, 2026. Each $1,000 bond was issued with 30 detachable stock.

  On july 1 2011 apache company sold a parcel of undeveloped

on july 1 2011 apache company sold a parcel of undeveloped land to a construction company for 3000000. the book value

  Waterworks has a dividend yield of 575 if its dividend is

waterworks has a dividend yield of 5.75. if its dividend is expected to grow at a constant rate of 2.75 what must be

  Examine the key inferences of corporate ethics

Examine the key inferences of corporate ethics related to internal controls and accounting principles which lead to the litigation

  Describe career options someone with an accounting education

Describe at least two career options someone with an accounting education can pursue. Be sure to reference sources such as the Bureau of Labor Statistics and the American Institute of Certified Public Accountants.

  Review study of the automobile industry

Which companies might Ford Motor Company include in a benchmarking study of the automobile industry, and in which countries are those companies located?

  What are the direct labor costs for the period

Prime costs totaled $16,500. Conversion costs totaled $23,500. What are the direct labor costs for the period

  Make all necessary audit adjustments

Answer the following question(s) and show your solution - Make all necessary audit adjustments, including entries for interest accrued and prepaid

  Prepare the journal entry or entries to record transaction

Prepare the journal entry or entries to record the transaction on January 1, 2011, on the books of Winston Industries

  By what amount did b capital amount change

By what amount did B's Capital amount change? Bonus to A of 10% of the profit after partner's salaries but before bonus. Annual salary allowances of P 100,000

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