1 Balance Sheet: Assets (Millions of Dollars) 2 3 Assets (million $) 4 Cash 5 S-T investment 6 Accounts receivable 7 Inventories 8 Total current assets (CA) 9 Gross fixed assets (FA) 10 Less: Depreciation 11 Net FA 12 Total assets 13 14 15 16 17 Liabilities and Equity (million $) 18 Accounts payable (A/P) 19 Notes payable 20 Accruals 21 Total current liabilities (CL) 22 Long-term dept 23 Total liabilities 24 Common Stock 25 Retained earnings 26 Total equity 27 Total L&E 28 29 30 31 32 Income Statement (Millions of Dollars) 33 34 35 (million $) 36 Sales 37 COGS 38 Depreciation 39 Other expenses 40 Tot. op. costs 41 EBIT 2039 5,500 4500 300 350 X x X x X x x 2039 80 120 420 600 4000 1000 2039 340 50 300 800 1200 1730 G 2040 6,000 5000 350 420 X x x X X x 2040 70 20 540 800 4820 1320 2040 440 250 340 1100 1200 1910 Background Assumptions Tax Rate Interest rate on short-term debt Interest rate on long-term debt Forecasted Sales (2041) Forecasted L-T growth rate Constant dividend policy x x x 25% 4.00% 9% Notes Business Plan For Next Year (2041) 1) Accounts cleanup for efficency: Short-term investemnt and NP will net out 2) A new cost saving plan: COGS/Sales-70%. Other expenses 4% 3) No expansion: FA, depreciation and Net FA will not change
1 Balance Sheet: Assets (Millions of Dollars) 2 3 Assets (million $) 4 Cash 5 S-T investment 6 Accounts receivable 7 Inventories 8 Total current assets (CA) 9 Gross fixed assets (FA) 10 Less: Depreciation 11 Net FA 12 Total assets 13 14 15 16 17 Liabilities and Equity (million $) 18 Accounts payable (A/P) 19 Notes payable 20 Accruals 21 Total current liabilities (CL) 22 Long-term dept 23 Total liabilities 24 Common Stock 25 Retained earnings 26 Total equity 27 Total L&E 28 29 30 31 32 Income Statement (Millions of Dollars) 33 34 35 (million $) 36 Sales 37 COGS 38 Depreciation 39 Other expenses 40 Tot. op. costs 41 EBIT 2039 5,500 4500 300 350 X x X x X x x 2039 80 120 420 600 4000 1000 2039 340 50 300 800 1200 1730 G 2040 6,000 5000 350 420 X x x X X x 2040 70 20 540 800 4820 1320 2040 440 250 340 1100 1200 1910 Background Assumptions Tax Rate Interest rate on short-term debt Interest rate on long-term debt Forecasted Sales (2041) Forecasted L-T growth rate Constant dividend policy x x x 25% 4.00% 9% Notes Business Plan For Next Year (2041) 1) Accounts cleanup for efficency: Short-term investemnt and NP will net out 2) A new cost saving plan: COGS/Sales-70%. Other expenses 4% 3) No expansion: FA, depreciation and Net FA will not change
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Concept explainers
Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
Topic Video
Question
fill in Xs' thank U!!!!!
Transcribed Image Text:AutoSave OFF
Home Insert Draw Page Layout
Paste
v
G46
1
2
3 Assets (million $)
4 Cash
Calibri (Body)
fx x
A
B
C
Balance Sheet: Assets (Millions of Dollars)
B
34
35 (million $)
36 Sales
I
5 S-T investment
6 Accounts receivable
7 Inventories
8 Total current assets (CA)
9 Gross fixed assets (FA)
10 Less: Depreciation
11 Net FA
12 Total assets
13
14
15
16
17 Liabilities and Equity (million $)
18 Accounts payable (A/P)
19 Notes payable
20 Accruals
21 Total current liabilities (CL)
22 Long-term dept
23 Total liabilities
37 COGS
38 Depreciation
39 Other expenses
40 Tot. op. costs
41 EBIT
Ready
U
24 Common Stock
25 Retained earnings
26 Total equity
27 Total L&E
28
29
30
31
32 Income Statement (Millions of Dollars)
33
V
BS, IS & Business Plan
V
D
12
Accessibility: Investigate
X
Formulas
V
V
A A
A
E
2039
5,500
4500
300
350
X
X
X
X
X
X
Data
F
2039
80
120
420
600
4000
1000
2039
340
50
300
800
1200
1730
NI & Special DIV Forecast
X
Review
G
2040
6,000
5000
350
420
X
X
X
X
X
X
View
H
2040
70
20
540
800
4820
1320
2040
440
250
340
1100
1200
1910
NI & AFN Forecast
Automate
XE_NI & AFN Forecast_Last Name.xlsx
Wrap Text v
I
Merge & Center ✓
+
Tell me
J
General
K
V
%
L
500
.00
→→→.0
M
Background Assumptions
Tax Rate
Conditional Format
Formatting as Table
N
V
Interest rate on short-term debt
Interest rate on long-term debt
Forecasted Sales (2041)
Forecasted L-T growth rate
Constant dividend policy
X
X
X
O
Cell
Styles
25%
4.00%
9%
P
Notes
Insert v
Delete ✓
Format v
Q
Business Plan For Next Year (2041)
1) Accounts cleanup for efficency: Short-term investemnt and NP will net out
Other expenses 4%
2) A new cost saving plan: COGS/Sales=70%.
3) No expansion: FA, depreciation and Net FA will not change
Σ
↓
R
V
V
O
V
Or
Sort & Find &
Filter Select
A
S
I
Comments
T
Analyze
Data
U
Share
Sensitivity
100%
V
Transcribed Image Text:AutoSave OFF
Home Insert Draw Page Layout
Paste
G46
v
A
X
34
35 (million $)
36 Sales
37 COGS
38 Depreciation
39 Other expenses
40 Tot. op. costs
41 EBIT
42 Intrest expense
43 Pre-tax ernings
Calibri (Body)
13
16
17 Liabilities and Equity (million $)
18 Accounts payable (A/P)
19 Notes payable
20 Accruals
44
45 Taxes (25%)
46 Net Income
47
48
49
50
51
52
53
54
55
56
Ready
B
B
21 Total current liabilities (CL)
22 Long-term dept
23 Total liabilities
24 Common Stock
25 Retained earnings
26 Total equity
27 Total L&E
28
29
30
31
32 Income Statement (Millions of Dollars)
33
I U
Tax Rate
V
fx x
C
BS, IS & Business Plan
V
D
12
Accessibility: Investigate
X
X
X
X
Formulas
V
V
A A
A
E
2039
5,500
4500
300
350
70
25%
X
X
X
X
Data
F
2039
340
50
300
800
1200
1730
NI & Special DIV Forecast
X
X
X
X
X
Review
G
2040
6,000
5000
350
420
120
25%
X
X
X
X
View
H
2040
440
250
340
1100
1200
1910
NI & AFN Forecast
Automate
XE_NI & AFN Forecast_Last Name.xlsx
Wrap Text v
I
Merge & Center ✓
+
Tell me
J
General
K
V
%
.00
→→→.0
V
Conditional Format
Formatting as Table
N
Cell
Styles
L
M
4) A new cost saving plant. COO5/Sales-70%0.
3) No expansion: FA, depreciation and Net FA will not change
P
Insert v
Delete ✓
Format v
Other expenses 47⁰
Q
Σ
↓
R
V
V
O
V
Or
Sort & Find &
Filter Select
A
S
I
Comments
T
Analyze Sensitivity
Data
If I ad It mad
Share
U
100%
V
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 2 images
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question
please do the balance sheet and sshow work the first part
Solution
by Bartleby ExpertKnowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education