Forecast income statements, Financial Accounting

Assignment Help:

The forecast income statements are as follows:

448_Forecast income statements.png

WORKINGS

Sales = 50000 × 1·12 = $56000000

Variable cost of sales = 30000 × 1·12 × 0·85 = $28560000

Fixed cost of sales = 30000 × 0·15 = $4500000 (assumed to be constant)

Administration costs = 14000 × 1·05 = $14700000

Interest under debt financing = 300 + (5000 × 0·1) = 300 + 500 = $800000

Related Discussions:- Forecast income statements

Voluntary settlements-bankruptcy, Voluntary settlements The trustee can...

Voluntary settlements The trustee can claim all property settled by the bankrupt on other persons within two years preceding the bankruptcy unless made: a. Before and in consi

Identify the reportable business segments, Juniper Ltd is a listed diversif...

Juniper Ltd is a listed diversified company. In preparing its financial statements in accordance with AASB 8, the chief operating officer has identified three operating segments:

Balance sheet-trusts laws and accounts, BALANCE SHEET Grouping of items...

BALANCE SHEET Grouping of items: Items in the Balance Sheet should be grouped under appropriate headings. In particular, a trust operating the provisions of the Trustee Act

Holding company, define the term of pre-acquisition diviend

define the term of pre-acquisition diviend

Account, list and explain the stages where the errors are deducted for rect...

list and explain the stages where the errors are deducted for rectification.

With the ddm formula calculated growth rate, Using CAPM's formula, Retur...

Using CAPM's formula, Return on equity = Risk-free rate + Beta*(Expected market return - risk-free rate) With the given information, Return on equity = 1% + 1.7*(9% - 1%)

Explain the transaction exposure versus economic exposure, Explain the Tran...

Explain the Transaction Exposure versus Economic Exposure? In brief describe the following term: a) Spot market and forward market. b) Purchasing Power Parity or PPP.

Prepare a cash budget, The following information for the six months ended 3...

The following information for the six months ended 31 December 2009 relates to the business of Mr N Morris: a) Opening cash (including bank) balance Rs 1,200 b) Production in unit

Protection of property of a deceased person, PROTECTION OF PROPERTY OF A DE...

PROTECTION OF PROPERTY OF A DECEASED PERSON (a) No person may take possession of or dispose of or otherwise intermeddle with, any free property of a deceased person, unless he

Compute gross income from sales, 1. Ben lost his job when his employer move...

1. Ben lost his job when his employer moved its plant. During the year, he collected unemployment benefits for three months, a total of $1,800. While he was waiting to hear from pr

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages