What is the expected net income for year

Assignment Help Financial Management
Reference no: EM131547654

ABC expects sales of $21,191,000 this year. The cost of goods sold is expected to be $11,992,000 while selling, general and administrative (SGA) expenses are forecast to be $4,295,000. The firm expects depreciation expenses to be $170,000 and expects to pay an average interest rate of 5% on its $4,127,000 of interest-bearing debt. Given its tax rate of 40%, what is the expected net income for ABC this year? (If it is a negative, be sure and enter a negative sign)

Reference no: EM131547654

Questions Cloud

Find their unpaid balance after one year : Find their unpaid balance after 1 year. During that first year, how much interest do they pay?
Individual major medical insurance policy with lifetime : Brittany, age 28, purchased an individual major medical insurance policy with a lifetime limit of $ 1 million, a calander year -deductible of $250,
How much gross fixed assets did abc buy or sell during year : Depreciation expenses during the year were 427,000. How much gross fixed assets did ABC buy or sell during the year?
What is the firm cash conversion cycle : Its average daily sales are 969,000 and its gross profit margin is 30 percent. What is the firm's cash conversion cycle?
What is the expected net income for year : Given its tax rate of 40%, what is the expected net income for ABC this year?
What constant rate is stock expected to grow after year : At what constant rate is the stock expected to grow after Year 3?
What is net profitability in dollars : The total income generated from their investments was $220,000 after all expenses were paid. What is the net profitability in dollars?
What is the minimum yield on investments required : What is the minimum yield on investments required in order to maintain a positive operating ratio?
What is the initial cost of the plant : What is the initial cost of the plant if the company raises all equity externally?

Reviews

Write a Review

Financial Management Questions & Answers

  Mid-south would recognize in this sales-type lease

Mid-South Auto Leasing leases vehicles to consumers. Calculate the amount of dealer’s profit that Mid-South would recognize in this sales-type lease.

  What is the most expensive activity

Top management has accepted the July 19th completion schedule created at the end of Part 2. Prepare a brief memo that addresses the following questions: How much will the project cost? What is the most expensive activity? What does the cash flow stat..

  Retail chain of specialty hardware stores

Philip's Hardware is a retail chain of specialty hardware stores. Should Philip's Hardware accept or reject the superstore project and why?

  Money in other investments with equal risk

You have a chance to buy an annuity that pays $10,000 at the beginning of each year for 10 years. You could earn 5.75% on your money in other investments with equal risk. What is the most you should pay for the annuity?

  What is the yeild rate for the investment in this strategy

A corporation is going to have to pay a debt of 1200000 after one year, a debt of 1500000 after 2 years, and 2000000 after 3 years. The spot rates are s1=5%, s2=4%, and s3=3%. Find the amount the corporation will have to invest now in each of these b..

  Calculate the profitability ratios for the firm

Use the following data from a firm's pro forma (i.e., projected or forecasted) financial statements to calculate the following profitability ratios for the firm

  Zero-coupon corporate bonds with a five-year maturity

Grummon Corporation has issued zero-coupon corporate bonds with a five-year maturity?. What will be the price of these bonds?

  Portfolio of british securities valued

Suppose you own a portfolio of British securities valued at $430,000. The exchange rate is currently at $1 = £0.57. A currency contract on British pounds is set at 62,500 pounds. How many contracts must you purchase to protect your portfolio from exc..

  Dividends are expected to grow at rate

Red-Blue Co. is growing quickly. Dividends are expected to grow at a rate of 24% for the next three years, with the growth rate falling off to the constant 6% per year indefinitely. If the required return is 11%, and the company just paid a dividend ..

  Identify the tax consequences on the sale

You are currently working at a mid-sized certified public accounting firm. Your client is Bob Jones. Bob, age 60 and single, has recently retired from IBM. Prepare a memorandum to the client, recommending a type of business entity, including an appen..

  Average returns equal to stock expected rate of return

Spencer Supplies's stock is currently selling for $60 per share. The firm is expected to earn $5.40 per share this year and to pay a year-end dividend of $2.20. If investors require a 9% return, what rate of growth must be expected for Spencer? If Sp..

  Portfolio weight of stock-expected return of your portfolio

Stock J has a beta of 1.28 and an expected return of 13.56 percent, while Stock K has a beta of 0.83 and an expected return of 10.5 percent. You want a portfolio with the same risk as the market. What is the portfolio weight of each stock? What is th..

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