The company is "Ties for U" and my boss wants to estimate profits for next year(2008) and then determine the percentage growth from 2007 to 2008.
Some assumptions:
- The marketing folk expect the total market for ties in 2008 to be 10 million ties.
- The expect "Ties for U" to capture 20% of the market next year.(how many ties will "Ties for U" sell?)
- The average selling price for "Ties for U" is $300.(now you can calculate the sales)
- Total expenses(cost of goods, marketing etc) estimated to be 60% of sales.
- Tax rate on profits is 50%
Questions:
What is your estimate for 2008 sales($)?
What is your estimate of 2008 profits after tax?
What is the percentage increase in 2008 profits after tax vs 2007 profit after tax of $110 Million?
Solution Preview
Solution:
a) What is your estimate for 2008 sales ($)?
Total Market for ties= 10 millions units
Target market share=20%
Expected sales = 10*20% million ties
=2 million ties
Sale volume in $=Expected ...
Solution Summary
Solution describes the steps for estimating sales, after tax profits and percentage increase in after tax profits.
... a. Estimate the appropriate price/sales multiple for ... Assuming the growth rate is estimated correctly, what would the profit margin needed to be to ...
... $5,500,000 Target profit $200,000 Estimated sales 12,000 bikes ...Estimating After-Tax Profit If next month's revenues ... Therefore, his estimate of pretax profit is ...
... as part following are the estimate 250,938 close ... discount rate (which rate for "estimates that a ... on current information, the e the estimated accounting numbers ...
...estimates that production and sales in 2011 will be 1,550 units. Based on this estimate, forecast income before taxes for 2011. PROBLEM P4-9 - High-Low, Profit...
... b. Estimate total monthly costs for a month when 330 tax returns are prepared, using estimates from regression ...Estimated fixed costs in year 1 are $660,000 ...
... are made for a single set of sales estimates, a. Whereas a ... involves the preparation of several cash flow estimates, with each estimate corresponding to a ...
... Earnings Estimates Qtr(7/05) Qtr(10/05) FY(1 ... Investors fix targets for most stocks by estimating future earnings ... to the average professional analyst's estimate. ...
Estimating Net Present Value. ...Estimate the NPV of the after-tax cash flows for this new car over ... Decline in sales 1st year 5% 2nd year 8% 3rd year 10% 4th year 5 ...
... In addition, he estimates the following relationships between ... COGS/sales 70% Operating expenses/sales 15% Depreciation ... A) Estimate Barker's net income for 2008 ...
... Total ( Sales IN Dollars) to earn desired Profit= (FIXED COSTS+((Profits/(1 ... 4. After preparing the original estimates, Foster determines that its variable ...
