The following information is available for a company. Set up the income statement and balance sheet for 2008, then forecast the income statement and balance sheet for 2009, assuming sales grow by 15% During 2008 the company is going to buy a $300,000 machine, depreciated SL over 6 years. It will do its financing for next year using bonds that have a coupon rate of 8%. It pays off $100,000 a year on its long term debt. 2008 2009 Additional Financing Necessary Dividends (30% payout) Taxable Income Depreciation $50,000 Cash $175,000 Accruals $50,000 Raw material $400,000 Curr. Assets LTD at 10% $600,000 Labor $312,500 Accum. Depr. $475,000 ST portion of LTD $100,000 A/P $50,000 TL & NW Operating Costs $125,000 A/R $275,000 Curr. Liab. GFA $1,550,000 Sales $1,250,000 Total Assets CS $480,000 Interest $76,000 Contri. To RE COGS NFA EBIT Other Fixed Costs $55,000 Taxes (40%) Gross Profits RE $425,000 Inv. $255,000 N/P at 8% $75,000 After Tax Income
The following information is available for a company. Set up the income statement and balance sheet for 2008, then
During 2008 the company is going to buy a $300,000 machine,
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2008 |
2009 |
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Additional Financing Necessary |
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Dividends (30% payout) |
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Taxable Income |
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Depreciation |
$50,000 |
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Cash |
$175,000 |
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Accruals |
$50,000 |
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Raw material |
$400,000 |
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Curr. Assets |
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LTD at 10% |
$600,000 |
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Labor |
$312,500 |
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Accum. Depr. |
$475,000 |
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ST portion of LTD |
$100,000 |
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A/P |
$50,000 |
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TL & NW |
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Operating Costs |
$125,000 |
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A/R |
$275,000 |
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Curr. Liab. |
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GFA |
$1,550,000 |
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Sales |
$1,250,000 |
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Total Assets |
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CS |
$480,000 |
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Interest |
$76,000 |
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Contri. To RE |
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COGS |
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NFA |
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EBIT |
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Other Fixed Costs |
$55,000 |
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Taxes (40%) |
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Gross Profits |
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RE |
$425,000 |
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Inv. |
$255,000 |
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N/P at 8% |
$75,000 |
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After Tax Income |
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