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Noah’s ark video games expects sales to grow by 25% next year. Assume that it pays out 95% of its net income. Using the following statements and the percent of sales method, forecast cash and equivalents

Noah’s ark video games expects sales to grow by 25% next year. Assume that it pays out 95% of its net income. Using the following statements and the percent of sales method, forecast cash and equivalents

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 2RE: Refer to RE5-1. Prepare a single-step income statement for Brandt Corporation for the current year.
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Noah’s ark video games expects sales to grow by 25% next year. Assume that it pays out 95% of its net income. Using the following statements and the percent of sales method, forecast cash and equivalents
Year 0 Balance Sheet Assets 25,000 12,000 Cash and Equivalents Accounts Receivable Inventories 5,000 Total Current Assets 42,000 Property, Plant and Equipment 120,000 Total Assets 162,000 Liabilities and Equity Accounts Payable 45,000 48,000 Debt Total Liabilities 93,000 Stockholders' Equity Total Liabilities and Equity 69,000 162,000
Transcribed Image Text:Year 0 Balance Sheet Assets 25,000 12,000 Cash and Equivalents Accounts Receivable Inventories 5,000 Total Current Assets 42,000 Property, Plant and Equipment 120,000 Total Assets 162,000 Liabilities and Equity Accounts Payable 45,000 48,000 Debt Total Liabilities 93,000 Stockholders' Equity Total Liabilities and Equity 69,000 162,000
Year 0 Income Statement 320,000 Sales (150,000) 170,000 Costs Except Depreciation EBITDA (15,000) 155,000 Depreciation EBIT Interest Expense (net) (3,000) 152,000 (53,200) Pretax Income Income Tax Net Income 98,800 Balance Sheet Year 0 Assets Cash and Equivalents 25,000 Accounts Receivable 12,000 Inventories 5,000 42,000 120,000 Total Current Assets Property, Plant and Equipment
Transcribed Image Text:Year 0 Income Statement 320,000 Sales (150,000) 170,000 Costs Except Depreciation EBITDA (15,000) 155,000 Depreciation EBIT Interest Expense (net) (3,000) 152,000 (53,200) Pretax Income Income Tax Net Income 98,800 Balance Sheet Year 0 Assets Cash and Equivalents 25,000 Accounts Receivable 12,000 Inventories 5,000 42,000 120,000 Total Current Assets Property, Plant and Equipment
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