Purchase Solution

Amortization and Income Statements

Not what you're looking for?

Ask Custom Question

1. To buy a new house you take out a 25 year mortgage for $300,000. What will your monthly interest rate payments be if the interest rate on your mortgage is 8 percent?
rate (i) =
number of periods (n)=
present value (PV) =$300,000
future value (FV) =$0
type (0 = at end of period) =0
monthly mortgage payment=

2. Prepare a Pro Forma Income Statement
Net Sales =$2,938 COGS=$1,598 SG&A=$475 Depreciation=45 Interest Exp=$32 Tax=15%

Show in Excel the following:
Net Sales
Cost Of Goods Sold
Gross Profit
Selling & Admin Exp
Depreciation
Interest Exp
Income Before Taxes
Income Taxes
Net Profit

Purchase this Solution
Solution Summary

This response calculates the monthly interest rate payments of a mortgage and provides instructions on how to prepare a pro forma income statement.

Solution Preview

1.
rate (i) = 8%
number of periods (n) = 25
present value (PV) = $300,000
future value (FV) = $0
type (0 = at ...

Solution provided by:
Jayant Kumar, MBA
Education
  • MBA, Indian Institute of Finance
  • Bsc, Madras University
Recent Feedback
  • "I've posted a similar question for another course. It's post 657940, and it's a practice problem that I'd like to use for the final exam. Your help will be greatly appreciated. "
  • "thank you!"
  • "Thank you again Jayant. You are super fast. "
  • "Thank you Jayant. You are appreciated. "
  • "Again, thank you Jayant. You are wonderful. "
Purchase this Solution
Free BrainMass Quizzes
Operations Management

This quiz tests a student's knowledge about Operations Management

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

View More Free Quizzes
Related BrainMass Solutions

  • Your friend Lucy slept through a class in which her professo

    Financial statements provide an overview of a business or person's financial condition in both short and long term. Financial statements normally consist of at least a balance sheet and an income statement.

  • Push-down accounting, equity method, partial equity method

    Dividends received from an investee reduce the carrying amount of the investment and are not reported as dividend income Thus D) is correct and A),B) and E) are incorrect. After year 2002, goodwill is no longer amortized. 10.

  • Accounting questions

    Yes the change in estimate would need to be disclosed in the notes to the financial statements The solution explains some accounting questions relating to income from operations; changes in estimates; amortization entry

  • Depreciation, depletion, and amortization expenses

    Financial statements are useful tools for evaluating both profitability and liquidity.

  • Advanced Accounting GAAP Case Study

    Discussion: As a result of the error on the income statement the amortization expense will be understated, income tax is overstated and the net income is overstated. On the balance assets will be overstated and company equity will be overstated.

  • Interest Expense, Depeciation Expense and Dividends

    What was its charge for depreciation and amortization? 3-4 Statement of retained earnings In its most recent financial statements. Newhouse Inc. reported $50 million of net income and $810 million of retained earnings.

  • Advanced Accounting - Cashen Co. and Janex Corp.

    The solution answers questions on the financial statements for Cashen Co. and Janex Corp.

  • Johnsfield Cash Flow concepts

    Depreciation and amortization are non-cash items. Sale of common stock is an asset and equity transaction, not income or expense. Retirement of bonds reduces cash and reduces debt - both on the balance sheet.

  • Safeway: Analysis of Financial Statements

    Income Statement): those are Depreciation and Amortization and impairment charges. Cash increased during the year by 61.2 million 6. Compare Safeway's depreciation and amortization to its cash used for additions to its property.

  • Finance practice questions

    Common-size financial statements include: I. balance sheets with contents divided by total assets II. income statements with contents divided by net sales or revenues III. cash flow statements with contents divided by depreciation and amortization

View More Related Solutions