Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

9.1 Boiler Bistro is projecting the following operating statistics for the year 2021: Net income required: 22% after income tax on the owner's present investment

image text in transcribed
image text in transcribed
image text in transcribed
9.1 Boiler Bistro is projecting the following operating statistics for the year 2021: Net income required: 22% after income tax on the owner's present investment of $82,000. Depreciation: present book value (consolidated) of all equipment is $63,000, the depreciation rate is 20% Interest: Interest on a loan outstanding of $35,000 is 8%. Income tax rate: 30% For Variable costs: food cost takes 41% of sales revenue wage cost takes 34% of sales revenue other costs take 12% of sales revenue . You also know a couple of other costs: insurance: $3000 license: $2,500 Utilities: $8,400 - Maintenance: $3,600 Administration: $5,400 Salaries: 40000 a What is the required Net Income After Tax? b The income tax is: 9.2 Given all information above, what is the sales revenue would the restaurant have to achieve in 2021 in order to acquire the desired net income after tax? 2 Points IATEX

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

9. Describe the characteristics of power.

Answered: 1 week ago

Question

3. Identify and describe nine cultural value orientations.

Answered: 1 week ago