I need assitance witht he following managerial accounting questiona involving EVA. Calculate EVA for...
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I need assitance witht he following managerial accounting questiona involving EVA.
Calculate EVA for 2017. Assume that for purposes of calculating EVA, the company capitalizes research and development expenditures and amortizes them over 3 years, including the year they are incurred. For external reporting purposes, research and development is expensed in the year incurred, as indicated in the income statements above. (Round answer to the nearest whole dollar, e.g. 5,725. Enter negative answers preceding either - sign, e.g. -45 or in parentheses, e.g. (45).)
EVA for 2017:
Exercise 12-13 The following income statements and other information are available for the Walla Walla Company 2017 2016 2015 Sales Less cost of goods sold Gross margin Less $387,772,000 $267,940,000 $204,040,000 213,274,600 1 28,611,20097,939,200 174,497,400 139,328,800 106,100,800 27,144,040 26,794,000 20,404,000 15,510,880 13,397,000 10,202,000 75,494,800 29,741,340 22,648,440 $92,289,736 $69,396,460 $52,846,360 $647,311,000 $611,451,000 $410,199,100 9,876,220 12% Selling and administrative costs Research and development Income from operations 131,842,480 39,552,744 99,137,800 Less taxes on income Net income Total assets Noninterest-bearing current liabilities Cost of capital 15,373,600 12% 11,235,000 12% Calculate EVA for 2017. Assume that for purposes of calculating EVA, the company capitalizes research and development expenditures and amortizes them over 3 years, including the year they are incurred. For external reporting purposes, research and development is expensed in the year incurred, as indicated in the income statements above. (Round answer to the nearest whole dollar, e.g. 5,725. Enter negative answers preceding either - sign, e.g. -45 or in parentheses, e.g. (45).) EVA for 2017
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