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Please help me with this assignment, if its possible post all the formulas I will be very grateful, thanks in advance for the help. The
Please help me with this assignment, if its possible post all the formulas I will be very grateful, thanks in advance for the help.
The income statement, also known as the profit and loss (P\&L) statement, provides a snapshot of the financial performance of a company during a specified period of time. It reports a firm's gross income, expenses, net income, and the income that is available for distribut to its and common shareholders. The income statement is prepared using the generally accepted accounting principles (GAAP) that match the firm's revenues and expenses to the statement and other financial statements and reports to evaluate the company's financial performance and condition. Consider the following scenario: Blue Hamster Manufacturing Inc.'s income statement reports data for its first year of operation. The firm's CEO would like sales to increase by 25% next year. 1. Blue Hamster is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (EBIT). 2. The company's operating costs (excluding depreciation and amortization) remain at 75% of net sales, and its depreciation and amortization expenses remain constant from year to year. 3. The company's tax rate remains constant at 25% of its pre-tax income or earnings before taxes (EBT). 4. In Year 2, Blue Hamster expects to pay $100,000 and $1,520,039 of preferred and common stock dividends, respectively. whole dollar. Given the results of the previous income statement calculations, complete the following statements: - In Year 2, if Blue Hamster has 10,000 shares of preferred stock issued and outstanding, then each prefered share should expect to receive in annual dividends. - If Blue Hamster has 500,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected to change from in Year 1 to in Year 2. - Blue Hamster's earnings before interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 2. - It is to say that Blue Hamster's net inflows and outflows of cash at the end 2 are equal to the company 1 and contribution to retained earnings, $2,203,437 and $2,722,930, respectively. This is because in in the statement involve payments and receipts of cashStep by Step Solution
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