Maps M Gmail 68 minutes remaining Question 5 7 OF 9 QUESTIONS REMAINING 2 Points For 2022, You're Doing Great Corporation reported $22million in sales and $19million in operating costs (including depreciation). The company has $15million of total invested capital. Its after-tax cost of capital is 13%, and its tax rate is 27%. What was the firm's economic value added (EVA) during 2022? Blank 1 Blank 1 Add your answer Question 6 2 Points Smart Students Inc paid out $33.4million in total common dividends and reported $198.9million of retained earnings at year-end. The prior year's retained earnings were $122.5million. What was the net income? Assume that all dividends declared were actually paid. Blank 1 Blank 1 Add your answer
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Problem 11-24 (Algo) Return on Investment (ROI) Analysis [LO11-1] The contribution format income statement for Huerra Company for last year is given below: Total Unit Sales $ 1,010,000 $ 50.50 Variable expenses 606,000 30.30 Contribution margin 404,000 20.20 Fixed expenses 322,000 16.10 Net operating income 82,000 4.10 Income taxes @ 40% 32,800 1.64 Net income $ 49,200 $ 2.46 The company had average operating assets of $493,000 during the year. Required: 1. Compute the company's margin, turnover, and return on investment (ROI) for the period. For each of the following questions, indicate whether the margin and turnover will increase, decrease, or remain unchanged as a result of the events described, and then compute the new ROI figure. Consider each question separately, starting in each case from the data used to compute the original ROI in (1) above. 2. Using Lean Production, the company is able to reduce the average level of inventory by $98,000. 3. The company achieves a cost savings of $7,000 per year by using less costly materials. 4. The company purchases machinery and equipment that increases average operating assets by $122,000. Sales remain unchanged. The new, more efficient equipment reduces production costs by $7,000 per year. 5. As a result of a more intense effort by sales people, sales are increased by 25%; operating assets remain unchanged. 6. At the beginning of the year, obsolete inventory carried on the books at a cost of $15,000 is scrapped and written off as a loss, thereby lowering net operating income. 7. At the beginning of the year, the company uses $178,000 of cash (received on accounts receivable) to repurchase some of its common stock.
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Problem 21-17 (Algo) Statement of cash flows; indirect method [LO21-4, 21-8] Comparative balance sheets for 2021 and 2020 and a statement of income for 2021 are given below for Metagrobolize Industries. Additional information from the accounting records of Metagrobolize is also provided. METAGROBOLIZE INDUSTRIES Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) 2021 2020 Assets Cash $405 $245 Accounts receivable 350 190 Inventory 500 275 Land 500 450 Building 900 900 Less: Accumulated depreciation (200) (180) Equipment 2,500 2,150 Less: Accumulated depreciation (325) (300) Patent 1,000 1,150 $5,630 $4,880 Liabilities Accounts payable $600 $400 Accrued liabilities 150 130 Lease liability—land 130 0 Shareholders' Equity Common stock 3,100 3,000 Paid-in capital—excess of par 750 700 Retained earnings 900 650 $5,630 $4,880 METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues Sales revenue $2,555 Gain on sale of land 30 $2,585 Expenses Cost of goods sold 800 Depreciation expense—building 20 Depreciation expense—equipment 160 Loss on sale of equipment 10 Amortization of patent 150 Operating expenses 600 1,740 Net income $845 Additional information from the accounting records: Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2021. During 2021, equipment with a cost of $150,000 (90% depreciated) was sold. The statement of shareholders’ equity reveals reductions of $150,000 and $445,000 for stock dividends and cash dividends, respectively. Required: Prepare the statement of cash flows for Metagrobolize Industries using the indirect method. (Enter your answers in thousands (i.e., 10,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.)
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