User Account

All Pages

What is the pro forma net income

Assignment Help Financial Accounting
Reference no: EM132979403

Question - Sakiwayo, the CFO of Homalco Ltd., is preparing the earnings projection for Quarter 1. The company has a December 31 year end. She has gathered the following information related to the assumptions for the first quarter projections:

Item Assumption

Sales $1,760,000

Cost of goods sold 40% of sales

Selling and administration - wages $230,000

Selling and administration - other expenses $185,000

Interest expense 10% annual interest, payable quarterly. Interest is paid quarterly, calculated on the loan balance outstanding at the end of the previous quarter.

Annual depreciation expense 30% of opening capital asset balance and 15% of any purchases made during the year

New capital asset purchases $450,000

Dividends paid $360,000

The bank loan balance and capital asset balance as at December 31 were $600,000 and $500,000, respectively. The company has an income tax rate of 28%. Assuming that depreciation is equal to CCA, what is the pro forma net income for Quarter 1?

Reference no: EM132979403

Questions Cloud

What specific challenges do you believe oracle : What specific challenges do you believe Oracle will face in its efforts to integrate Sun Microsystems and What do you believe Oracle should do to overcome
How much of dividend distributed to preferred shareholders : Outstanding stock of the Vaughn Manufacturing included 43000 shares. How much of the 2020 dividend was distributed to preferred shareholders?
What is the expected residual income : The company's minimum rate of return is 15%. What is the expected residual income for the West Division for next year
What the entry to record transaction of march would include : What the entry to record the transaction of March 30 would include a. On March 17 the company declared a 5% stock dividend to stockholders of record on March 20
What is the pro forma net income : The company has an income tax rate of 28%. Assuming that depreciation is equal to CCA, what is the pro forma net income for Quarter 1
Explain and write a message to manager of threads to inform : Write a message to the Manager of Threads to inform him that you will not be renewing your contract for buying more clothes from them.
How calculate the overhead application rate : One such non-custom model is called Luxury Base Frame. Normal production is 1,000 units. How calculate the overhead application rate
Find amount of payroll cost that would be included in cost : Find the amount of payroll cost that would be included in cost of goods sold. A review of the accounting records of Franklin Manufacturing indicated
What is the difference between the projected roes : In this situation, what is the difference between the projected ROEs under the restricted and relaxed policies

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd