Best writers. Best papers. Let professionals take care of your academic papers

Order a similar paper and get 15% discount on your first order with us
Use the following coupon "FIRST15"
ORDER NOW

Seeking help on accounting question

assignment.docx ;

Need assignment help for this question?

If you need assistance with writing your essay, we are ready to help you!

OUR PROCESS

Order

Payment

Writing

Delivery

Why Choose Us: Cost-efficiency, Plagiarism free, Money Back Guarantee, On-time Delivery, Total Сonfidentiality, 24/7 Support, 100% originality

Hi Folks,

See attached. This is an exercise in constructing a P&L from info provided. It involves determining various line-items based on A/R DSO, Inventory MOH, A/P Days, etc. info. ;

NOTE: The NIBT amount (Net Income Before Tax) can be determined by dividing NIAT by (1-tax rate % as a decimal). For example, if NIAT is $250,000 and the tax rate is 38%, the NIBT would be:

NIBT = NIAT/(1 – 0.38) = $250,000/0.62 = $403,226.

The Expenses can be calculated as the difference between GP & NIBT.

Try this & let me know if you have any questions.

Ken

Construct a 2013 P&L for a company with the following data and calculate eps: (NOTE: eps is NIAT “available to common shareholders” divided ny share quantity.

Retained Earnings 12/31/12 ; $1,250,000

Retained earnings 12/31/13 ; ; 1,600,000

A/R 12/31/13 ; ; 1,250,000 (60 days DSO)

Inventory 12/31/13 ; ; 1,500,000 (4 months-on-hand)

A/P 12/31/13 ; ; 562,500 (45 days)

Net Profit Margin ; ; 10%

Tax Rate ; ; 30%

Preferred Dividend 2013 ; $100,000

Common Dividend ; $300,000

Common Stock ; ; 325,000 shares ;

Complete all line items:

Sales

COGS

Gross Profit (GP)

GP%

Expenses

NIBT

Tax

NIAT

EPS

“Order a similar paper and get 15% discount on your first order with us
Use the following coupon
“FIRST15”

Order Now