Dunweiler Inc, is developing a pro forma income statement for the coming year. The chief financial officer estimates that sales will be $150,000,000
If selling, general, and administrative expenses (SGA) are historically 18% of sales, what are the expected SGA expenses (in dollars)?
A) $18,000,000
B) $27,000,000
C) $30,000,000
D) $41,000,000
B
Explanation: B) SGA =0.18 * (Sales) = 0.18 * $150,000,000 = $27,000,000.
You might also like to view...
Answer the following statements true (T) or false (F)
1) Compound interest assumes that all interest earned will remain invested and earn additional interest at the same interest rate. 2) The only difference between the present value and future value of a lump sum is the amount of interest that is earned in the intervening time span. 3) The following formula is used to compute the present value of a lump sum: Future value = Present value × PV factor for i = X%, n = X periods 4) The process for calculating present values is often called discounting future cash flows because future amounts are discounted to their present value. 5) An annuity is a series of unequal payments over equal intervals.
Wholesalers and retailers create efficiencies in the flow of goods from producer to end consumer by ________ when they provide a variety of products in one location
A) creating assortments B) just in time processing C) third-party logistics D) order processing E) inventory control
Zach decided to incorporate his business under the name of "Zamm." In addition to "Zamm," the Model Act requires that Zach include one of the following words: "corporation," "incorporated," "limited," or "company" or an abbreviation thereof
a. True b. False Indicate whether the statement is true or false
You live in an Eichler-built house in Cupertino California. You admire Apple so much that it is the only stock that you want in your portfolio
You have $100,000 of your own money to invest and you intend to buy more Apple on margin by borrowing an additional $40,000. Your broker will lend to you at the risk free rate, 5%, and has guaranteed the lending rate for the duration of your investment. Apple's expected return is 12% and the expected return on the market is 8%. Apple's beta is 1.25. What beta do you expect from your portfolio? A) 1.25 B) 1.45 C) 1.55 D) 1.65 E) 1.75