Purchase Solution

Income statement for Astro Aviatonics

Not what you're looking for?

Ask Custom Question

Astro Aviatonics has collected the following data for a proposed new machine and process that will enable significant new product capabilities once fully implemented. The salvage value is zero. Convert this into an incremental income statement for a proposal.
Year 0 1 2 3 4 5
Present Sales $600,000 $600,000 $600,000 $600,000 $600,000
Forecasted sales $575,000 $600,000 $625,000 $650,000 $675,000
Investment $95,000
Depreciation Straight-line 5-years
Salvage Value $0
COGS Present $210,000 $210,000 $210,000 $210,000 $210,000
COGS Forecasted $212,000 $208,000 $204,000 $200,000 $196,000
S.G.&A. no change
Taxes $0

Purchase this Solution
Solution Summary

The following help with problems involving income statements.

Solution Preview

Year 0 1 2 3 4 5
Investment $95,000
Present Sales $600,000 $600,000 $600,000 $600,000 $600,000
Forecasted sales $575,000 $600,000 $625,000 $650,000 $675,000
Incremental sales ...

Solution provided by:
Sonia Agarwal, CA
Education
  • Chartered Accountant (Equivalent to CPA in US), Institute of Charted Accountants of India
  • Bachelor of Commerce, West Bengal University
Recent Feedback
  • "I got this feedback and I wanted to know if you can explain it to me. I noticed something within your workings which I believe is incorrect.  It looks like you've mistaken the Debt ratio for the Equity Multiplier.  You've done a calculation to determine Return on Equity (ROE) but if you take a look at the ratios provided for us you'll see ROE listed on the bottom line already.  You can use ROE, Profit Margin and Total Asset Turnover to figure out the Equity Multiplier amount.  Equity multiplier is not provided for us and we need to calculate it.  I really hope this is helpful to you.  "
  • "Very attentive to detail. Answers are designed in easy to understand format."
  • "Fast response and thorough answer"
  • "thank you very much! "
  • "thank you so much !!!!!!!"
Purchase this Solution
Free BrainMass Quizzes
Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Organizational Behavior (OB)

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

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

View More Free Quizzes
Related BrainMass Solutions

  • Auditing the financial statements of Astro Company

    Answer (D): Under the rollover method, the focus is kept at the current period income statement.

  • Japanese Anime

    There are several differences between the Japanese and US lifestyles, income, values and behaviors that may contribute to the lack of success of the Astro Boy. This answer provides you an excellent discussion on Japanese Anime

  • Accounting:AB Costing,Net income,inventory valuation,

    standards of financial reporting 7) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals: Income Statement Balance Sheet Dr. Cr. Dr. Cr.

  • Marion Manufacturing & Beyonce Inc.

    How much are equivalent units for conversion costs if the weighted average method is used? One of Astro Company's activity cost pools is machine setups, with estimated overhead of $150,000.

  • This post addresses cost accounting study guide questions.

    C. 37.5% D. 62.5%. 24) Which statement describes a fixed cost? A. It remains the same per unit regardless of activity level. B. Its total varies proportionally to the level of activity. C.

  • Description of a superior planet

    A synodic period is the time it takes for an astro-body to return to the same angular position from the Sun as seen from the Earth. The description of a superior planets are analyzed for synodic period.

  • Universal Gravitational Constant G

    F = G * Ms * Mu / R^2 ---(1) G = 6.67*10^(-11) Nm^2/kg^2 Ms = 1.99 x 10^30 kg Mass of Earth = Me = 5.98*10^24 kg Mu = 14.5 * Me = 14.5* 5.98*10^24 kg 1 Astro.

  • Ammortization schedule

    Amortization schedules are computed for a special loan agreement with Astro Co.

  • Affiliate Programs and How They Work

    George Jetson talks Astro into becoming an affiliate of Spacely Sprockets as well.

View More Related Solutions