Exercise 15-1 common-size income statement [lo15-1] a comparative income statement is given below for mckenzie sales, ltd., of toronto: mckenzie sales, ltd. comparative income statement this year last year sales $ 7,360,000 $ 5,593,600 cost of goods sold 4,730,000 3,516,000 gross margin 2,630,000 2,077,600 selling and administrative expenses: selling expenses 1,380,000 1,073,500 administrative expenses 704,000 617,000 total expenses 2,084,000 1,690,500 net operating income 546,000 387,100 interest expense 98,000 93,000 net income before taxes $ 448,000 $ 294,100 members of the company’s board of directors are surprised to see that net income increased by only $153,900 when sales increased by $1,766,400. required: 1. express each year's income statement in common-size percentages. (round your percentage answers to 1 decimal place (i. e., 0.1234 should be entered as 12.

Guardian inc. is trying to develop an asset-financing plan. the firm has $450,000 in temporary current assets and $350,000 in permanent current assets. guardian also has $550,000 in fixed assets. assume a tax rate of 40 percent. a. construct two alternative financing plans for guardian. one of the plans should be conservative, with 70 percent of assets financed by long-term sources, and the other should be aggressive, with only 56.25 percent of assets financed by long-term sources. the current interest rate is 12 percent on long-term funds and 7 percent on short-term financing. compute the annual interest payments under each plan.

The cost of capital: introduction the cost of capital: introduction companies issue bonds, preferred stock, and common equity to aise capital to invest in capital budgeting projects. capital is』necessary factor of production and like any other factor, it has a cost. this cost is equal to the select the applicable security. the rates of return that investors require on bonds, preferred stocks, and common equity represent the costs of those securities to the firm. companies estimate the required returns on their securities, calculate a weighted average of the costs of their different types of capital, and use this average cost for capital budgeting purposes. required return on rate: when calculating om operations when the firm's primary financial objective is to select shareholder value. to do this, companies invest in projects that earnselect their cost of capital. so, the cost of capital is often referred to as the -select -select and accruals, which a se spontaneously we hted average cost of capital wa c our concern is with capital that must be provided by select- 쑤 interest-bearing debt preferred stock and common equity. capital budgeting projects are undertaken, are not included as part of total invested capital because they do not come directly from investors. which of the following would be included in the caculation of total invested capital? choose the response that is most correct a. notes payable b. taxes payable c retained earnings d. responses a and c would be included in the calculation of total invested capital. e. none of the above would be included in the cakulation of total invested capital.

Marta communications, inc. has provided incomplete financial statements for the month ended march 31. the controller has asked you to calculate the missing amounts in the incomplete financial statements. use the information included in the excel simulation and the excel functions described below to complete the task