FIN 3310 Lecture Notes - Lecture 3: Promissory Note, Preferred Stock, Investment

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apricotclam40

13 Feb 2017

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The statement of profit or loss for the period comprised of net revenues less expenses for the period. Gross profit from sales minus total operating expenses. Interest paid to the suppliers of the firm"s outstanding debt. The tax rate that would be applied to the next dollar of income. Total taxes owed by the firm divided by the firm"s taxable income. A figure representing the firm"s profit or loss for the period. It also represents the earnings available to the firm"s preferred and common stockholders. A statement of financial position at a particular date. Current assets consist primarily of cash and cash equivalents, accounts receivable, inventory and prepaid expenses. Frequently when the term working capital is used, it is actually intended to mean net working capital. Current liabilities other than short-term debt that do not bear interest. The difference between the firm"s current assets and its non-interest bearing current are accounts payable, accrued expenses and deferred income.

Related Questions

CREEK ENTERPRISES, INC.

Income Statement Year Ending December 21, 2015

SALES REVENUE $ 30,000,000

LESS: COGS 21,000,000

GROSS PROFIT $ 9,000,000

LESS: OPERATING EXPENSES

SELLING EXPENSE $ 3,000,000

GENERAL & ADMIN. EXPENSE 1,800

LEASE EXPENSE 200,000

DEPRECIATION EXPENSE 1,000,000

TOTAL OPERATING EXPENSE $ 6,000,000

OPERATING PROFITS $ 3,000,000

LESS:INTEREST EXPENSE: 1,000,000

NET PROFIT BEFORE TAXES $ 2,000,000

LESS:TAXES(RATE = 40%) 800,000

NET PROFIT AFTER TAXES $ 1,200,000

LESS: PREFERRED STOCKHLDR

DIVIDEND 100,000,00

EARNINGS AVAILABLE FOR

COMMON STOCKHOLDERS $1,100,000

Common-size statement analysis A common-size income statement for Creek Enterprisesâ
2014 operations follows. Using the firmâs 2015 income statement, develop the 2015 common-size income statement and compare it with the 2014 statement. Which areas require further analysis and investigation?

CREEK, INC. COMMON-SIZE INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2014

SALES REVENUE ($35,000,000) 100%

LESS: COGS 65.9

GROSS PROFITS 34.1%

LESS: OPERATING EXPENSES

SELLING EXPENSE 12.7%

GENERAL & ADMIN EXPENSE 6.3

LEASE EXPENSE 0.6

DEPRECIATION EXPENSE 3.6

TOTAL OPERATING EXPENSE 23.2

OPERATION PROFITS 109%

INTEREST EXPENSE 1.5

NET PROFIT BEFORE TAXES 9.4%

LESS:TAXES(RATE = 40%) 3.8

NET PROFIT AFTER TAXES 5.6%

LESS; PREFERRED STOCKHLDR DIVIDENDS 0.1

EARNINGS AVAIL. FOR COMMON STOCKHLDRS 5.5%

copperwombat680

The Harding Company manufactures skates. The company's income statement for 2013 is as follows:

Sales (10,500 skates @ $60 each).....................$630,000

Less: Variable costs (10,500 skates at $25)....... 262,500

Fixed costs......................................................200,000

Earnings before interest and taxes (EBIT)............$167,500

Interest expense......................................................62,500

Earnings before taxes (EBT)...................................$105,000

Income tax expense (30%)........................................31,500

Earnings after taxes (EAT).........................................$73,500

Given this income statement, compute the following:

a. degree of operating leverage

b. degree of financial leverage

c. degree of combined leverage

d. break-even point in units (number of skates)

harlequincicada685

What are Aetna Inc financial statements, sale profits, cash flow, debt level, liquidity, return on assets, and return on equity?

Income Statement

All numbers in thousands

Revenue	12/31/2016	12/31/2015	12/31/2014
Total Revenue	63,155,000	60,337,000	58,003,000
Cost of Revenue	46,356,000	43,833,000	42,912,000
Gross Profit	16,799,000	16,504,000	15,091,000
Operating Expenses
Research Development	-	-	-
Selling General and Administrative	12,085,000	11,644,000	10,833,000
Non Recurring	-	-	-
Others	247,000	255,000	243,000
Total Operating Expenses	-	-	-
Operating Income or Loss	4,467,000	4,605,000	4,015,000
Income from Continuing Operations
Total Other Income/Expenses Net	128,000	128,000	-181,000
Earnings Before Interest and Taxes	4,595,000	4,605,000	3,834,000
Interest Expense	604,000	369,000	334,000
Income Before Tax	3,991,000	4,236,000	3,500,000
Income Tax Expense	1,735,000	1,841,000	1,455,000
Minority Interest	62,000	65,000	69,200
Net Income From Continuing Ops	2,256,000	2,395,000	2,045,000
Non-recurring Events
Discontinued Operations	-	-	-
Extraordinary Items	-	-	-
Effect Of Accounting Changes	-	-	-
Other Items	-	-	-
Net Income
Net Income	2,271,000	2,390,000	2,041,000
Preferred Stock And Other Adjustments	-	-	-
Net Income Applicable To Common Shares	2,271,000	2,390,000	2,041,000

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FIN 3310 Lecture Notes - Lecture 3: Promissory Note, Preferred Stock, Investment

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