Given the following: Accounts receivable (starting) $800,000 Advertising $1,000,000 Cost of good sold $9,200,000 Depreciation expense $440,000 Insurance $200,000 Interest $420,000 Inventory (starting) $2,600,000 Labor expense $1,200,000 Loan principal payments $600,000 Management compensation $800,000 Miscellaneous expense $600,000 Owner's equity $4,000,000 Purchases of inventory $9,000,000 Receipts on accounts receivable $11,800,000 Rent $800,000 Sales (cash) $4,000,000 Sales (credit) $12,000,000 Utitilities $240,000 Please calculate (3 points each): Gross margin (percentage) Net margin (percentage) EBITDA Total net cash flow Ending inventory Ending accounts receivable If the company increased advertising by 5% and got a 1% increase in sales volume, what would be the expected net profit? If the company reduced price by 5% and got a 10% increase in sales volume, what would be the expected net profit?

Given the following: Total revenues this year $1,950,000 Total variable expenses this year $1,170,000 Total fixed expenses this year $624,000 Net profit before tax this year $156,000 Projected revenues next year $2,145,000 Please calculate (3 points each): Projected total variable expenses next year Projected net profit before tax next year

Given the following: Budget Actual Total revenues $12,000,000 $11,400,000 Total variable expense $7,440,000 $7,240,000 Total fixed expense $3,600,000 $3,480,000 Net profit before tax $960,000 $680,000 Please calculate (3 points each): Actual variable expense $ variance from (adjusted) budget Actual fixed expense $ variance from (adjusted) budget Given the following: Total unit sales volume 100,000 Price per unit $10 Total revenues $1,000,000 Total variable expense $600,000 Total fixed expense $300,000 Net profit before tax $100,000 Please calculate (3 points each): Breakeven revenues (in dollars) If prices are reduced 10%, what unit sales volume will be needed to yield net profit before tax of $100,000?