Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

*question: how much ORA needs to earn to increase its revenue and net profit for the next year (2019) to solve the financial challenges in

image text in transcribed

*question: how much ORA needs to earn to increase its revenue and net profit for the next year (2019) to solve the financial challenges in 2018? show your calculation

EXHIBIT 5: ORA INCOME STATEMENT, 2016-2018 (IN CA\$) \begin{tabular}{|c|c|c|c|} \hline Revenue & 2018 & 2017 & 2016 \\ \hline Total revenue & 219,886 & 130,241 & 57,094 \\ \hline Total sales & 74,886 & 33,241 & 22,094 \\ \hline ORA & 27,112 & 24,362 & 22,094 \\ \hline ORA PRO & 47,774 & 8,879 & 0 \\ \hline Grant revenue & 145,000 & 97,000 & 35,000 \\ \hline \multicolumn{4}{|l|}{ Cost of sales } \\ \hline Opening inventory & 12,006 & 11,865 & 11,618 \\ \hline Purchases & 14,249 & 12,276 & 11,915 \\ \hline \multirow[t]{2}{*}{ Freight } & 11,989 & 11,243 & 9,860 \\ \hline & 38,244 & 35,384 & 33,393 \\ \hline Closing inventory & (12,983) & (12,006) & (11,865) \\ \hline Total cost of sales & 25,261 & 23,378 & 21,528 \\ \hline Gross profit & 194,625 & 106,863 & 35,566 \\ \hline \multicolumn{4}{|l|}{ Expenses } \\ \hline Credit card charges & 1,997 & 2,776 & 1,288 \\ \hline Salaries, wages, and benefits & 107,651 & 52,112 & 14,680 \\ \hline Insurance, licences, and rentals & 3,327 & 3,495 & 2,178 \\ \hline Amortization & 1,543 & 1,238 & 1,889 \\ \hline Interest & 2,678 & 1,619 & 2,174 \\ \hline Supplies, office, utilities, and other & 9,161 & 4,622 & 3,291 \\ \hline Advertising & 17,608 & 10,307 & 7,187 \\ \hline Rent and repairs & 33,177 & 30,623 & 22,684 \\ \hline Total expenses & 177,142 & 106,792 & 55,371 \\ \hline Income from operations & 17,483 & 71 & (19,805) \\ \hline Loss carry forward & (32,346) & (32,417) & (12,612) \\ \hline Net income (loss) & (14,863) & (32,346) & (24,543) \\ \hline \end{tabular}

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

Franchising An Accounting Auditing And Income Tax Guide

Authors: Ross A. McCallum

2011edition

1460906179, 978-1460906170

More Books

Students also viewed these Accounting questions

Question

b. Will there be one assigned leader?

Answered: 1 week ago