Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Cost Accounting Expert

Lucrative Corporation

Consolidated Income Statement

Year ended December 31 (in $ millions)

 

2006

2005

Total sales

610.1

578.3

Cost of sales

(500.2)

(481.9)

Gross profit

109.9

96.4

Selling, general, and

administrative expenses

(40.5)

(39.0)

Research and development

(24.6)

(22.8)

Depreciation and amortization

(3.6)

(3.3)

Operating income

41.2

31.3

Other income

---

---

Earnings before interest and taxes (EBIT)

41.2

31.3

Interest income (expense)

(25.1)

(15.8)

Pretax income

16.1

15.5

Taxes

(5.5)

(5.3)

Net income

10.6

10.2

 

 

 

Price per share

$16

$15

Shares outstanding (millions)

10.2

8.0

Stock options outstanding (millions)

0.3

0.2

 

 

 

Stockholders' Equity

126.6

63.6

Total Liabilities and Stockholders' Equity

533.1

386.7

Show computations.

[A] For the year ending December 31, 2006 find out Lucrative's earnings per share?

[B] Suppose that Lucrative has no convertible bonds outstanding. Then for the year ending December 31, 2006 find out Luther's diluted earnings per share?

[C] find out Lucrative's Operating Margin for the year ending December 31, 2005?

[D] find out Lucrative's Net Profit Margin for the year ending December 31, 2005?

[E] find out Lucrative's earnings before interest, taxes, depreciation, & amortization (EBITDA) for the year ending December 31, 2006?

[F] find out Lucrative's returns on equity (ROE) for the year ending December 31, 2006?

[G] find out Lucrative's price - earnings ratio (P/E) for the year ending December 31, 2006?

[H] If Locative's accounts receivable were $55.5 million in 2006, then compute Luther's accounts receivable days for 2006.

Cost Accounting, Accounting

  • Category:- Cost Accounting
  • Reference No.:- M922536

Have any Question? 


Related Questions in Cost Accounting

Final project milestone three guidelinesoverview

Final Project Milestone Three Guidelines Overview: Classifying a company's costs allows for an in-depth analysis of the impact that changes in output have on revenues, costs, and net income or net loss. A cost-volume-pro ...

Assignment- show the step by step solutions to the

Assignment- Show the step by step solutions to the following questions: I. A firm is able to sell 10,000 units at $ 12 per piece. The company fixed cost is $30,000. Variable cost is $6 per unit. 1. What is the contributi ...

Question 1 high-low methodtucson tractor inc has

Question 1 High-low method Tucson Tractor Inc. has accumulated the following data over a six month period   Indirect Labor Hours Indirect Labor Costs January......................... 400 $ 6,000 February................. ...

Assignment1 the following information is from the

Assignment 1. The following information is from the manufacturing budget and the budgeted financial statements of Fabor Fabrication: Compute the budgeted amounts for: a. Purchases of direct materials during the year. b. ...

Assignment cost accountingoverviewthe final project for

Assignment: Cost Accounting Overview The final project for this course is the creation of a quantitative analysis with a memo to management. Classifying a company's costs allows for an in-depth analysis of the impact tha ...

Case questionsmarriott corporation the cost of capital

Case Questions Marriott Corporation: The Cost of Capital (Abridged) 1. What is the weighted average cost of capital for Marriott Corporation? a. What risk-free rate and risk premium did you use to calculate the cost of e ...

Cost of capital assignment questions -1 what does the cost

Cost of Capital Assignment Questions - 1. What does the cost of capital represents? What is should reflect? 2. How do taxes affect the cost of debt? 3. What are the retained earnings? Do they have any costs for the firm? ...

Case questions rio grande medical center cost allocation

CASE QUESTIONS RIO GRANDE MEDICAL CENTER Cost Allocation Concepts 1. Is it "fair" for the Dialysis Center to suffer in profitability, and hence for the department head to possibly lose his bonus, just because the Outpati ...

Questionyou are just from attending a conference on

QUESTION You are just from attending a conference on Activity Based Costing (ABC) and you now wish to put your knowledge to practice by applying the principles of ABC to the four products currently made and sold by your ...

Assignment discussion-cost accumulation systemwhen

Assignment: Discussion-Cost Accumulation System When companies accumulate costs, they generally use either a job-order or a process costing system. The type of system used often varies based on the type of product or ser ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen