annual incremental pre-tax profit

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• Managerial Accounting: After-Tax Profit

  Incremental Sales: $80,000 Incremental Costs: $30,000 Incremental Pre-Tax Profits = $80,000-$30,000=$50,000 Tax @ 30% = $50,000*30%=$15,000 Profit After Tax from special project = $50,000-$15,000=$35,000 Hope this will help.

• Jim Bo's currently has annual cash revenues of $240,000 and annual operating expenses of $185,000 including $35,000 in depreciation. The firm's marginal tax rate is 40 percent. A new cutting machine can be purchased for $120,000 that will increase revenues by $50,000 per year while operating expenses would increase to $205,000, including $42,000 in depreciation. Compute Jim Bo's annual incremental after-tax net cash flows.

  Compute Jim Bo's annual incremental after-tax net cash flows.

• Receivable management

  220366 Receivable Management Please see attached file: Average collection period for accounts receivable Incremental investment in receivables Incremental charge to pre-tax profit. See attached file for full explanation of answers. 56.

• Capital investment decision making

  Sales = 300,000 Incremental cost = 280000 Depreciation =150000/10=15000 taxable income = 5000 Tax @30%=1500 Profit after tax = 3500 Add back depreciation = 15000 After tax cash flows from operations = 18500 Answer d. 18,500 2.

• Pre-tax profits from sales

  . $98,700 Pre tax profit = Sales - Variable cost - Fixed cost Sales = 49,000 units X $15 = 735,000 Variable cost = 49,000 units X $9 = 441,000 Fixed cost = 200,000 Pre tax profit = 735,000-441,000-200,000 = 94,000 The solution explains how to calculate

• Contribution Margin per Unit Calculation

  Current operating data follows: Sales Revenue $200,000 Variable Costs $100,000 Fixed Costs $80,000 Pre-tax Profit $20,000 For each incremental addition of 500 units of output weekly, I would need to purchase new equipment that would add $1,500

• Pro forma Income Statement

  Over a 11 year period the following trends were observed: Compounded annual growth rates: Sales 9% Earnings 11% Cash Flows 12% The company maintained: Average gross profit 77% EBITDA 53% EBIT 50% Net margin 31% Annual return on equity averaged

• Annual Incremental Earnings, Cash Flow, and Price Per Share

  The annual incremental earnings are $ 2. Cellular Access Inc., is a cellular telephone service provider that reported net operating profit after tax (NOPAT) of $240 million for the most recent fiscal year.

• Kim Mitchell, credit manager of Vinson is considering changes customer credit terms

  Mitchell estimates that tightening the credit terms to 30 days would reduce annual sales to $2,375,000, but accounts receivable would drop to 35 days of sales and the savings on investment in them should more than overcome any loss in profit.