FUNDAMENTAL OF CORPORATE FINANCE
4th Edition
ISBN: 9781323942925
Author: Berk
Publisher: PEARSON
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Textbook Question
Chapter 20, Problem 1CQ
Based on the
| 1 | Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 |
| 2 | Income Statement ($000s) | ||||||
| 3 | Sales | 100,000 | |||||
| 4 | Cost of Goods Sold | -45,333 | |||||
| 5 | Gross Profit | 54,667 | |||||
| 6 | Sales and Marketing | -15,000 | |||||
| 7 | Administration | -18,000 | |||||
| 8 | EBITDA | 21,667 | |||||
| 9 | -6,667 | ||||||
| 10 | EBIT | 15,000 | |||||
| 11 | Interest Expense (net) | -1,021 | |||||
| 12 | Pretax Income | 13,979 | |||||
| 13 | Income Tax | -4,893 | |||||
| 14 | Net Income | 9,086 |
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Using the AFN formula in financial forecasting approach, Determine the following for Piano Co. given the following accounting information assuming that the firm’s profit margin remains constant and the company is at full capacity. · Sales this year is P6,000,000· Percentage increase projected for next year sales = 20%· Net income this year amounts to P600,000· Retention ratio = 50%· Accounts payable = P1,100,000· Notes payable = P180,000· Accrued expenses = P500,000· Projected excess funds available next year is determined to be P200,000
Questions:
1. Determine the spontaneous liabilities increase.
2. How much is the increase in Retained Earnings?
3. How much is the total assets?
Chapter 20 Solutions
FUNDAMENTAL OF CORPORATE FINANCE
Ch. 20 - Prob. 1CCCh. 20 - 2. What is the effect of seasonalities on...Ch. 20 - Prob. 3CCCh. 20 - Prob. 4CCCh. 20 - Prob. 5CCCh. 20 - Prob. 6CCCh. 20 - Prob. 7CCCh. 20 - Prob. 8CCCh. 20 - Prob. 9CCCh. 20 - Prob. 10CC
Ch. 20 - Based on the forecasts in this case, use the...Ch. 20 - Use the following spreadsheet to project Idexo’s...Ch. 20 - Based on the forecasts you have already developed,...Ch. 20 - Prob. 4CQCh. 20 - Prob. 5CQCh. 20 - Prob. 1CTCh. 20 - Prob. 2CTCh. 20 - Which of the following companies are likely to...Ch. 20 - Prob. 4CTCh. 20 - Prob. 5CTCh. 20 - Prob. 6CTCh. 20 - Prob. 7CTCh. 20 - What is the difference between evergreen credit...Ch. 20 - Prob. 9CTCh. 20 - Prob. 10CTCh. 20 - Prob. 11CTCh. 20 - Prob. 1PCh. 20 - Prob. 2PCh. 20 - Prob. 3PCh. 20 - The following table includes quarterly working...Ch. 20 - Prob. 5PCh. 20 - Prob. 6PCh. 20 - Prob. 7PCh. 20 - Hand-to-Mouth (H2M) is currently cash-constrained,...Ch. 20 - Prob. 9PCh. 20 - Prob. 10PCh. 20 - Prob. 11PCh. 20 - Prob. 12PCh. 20 - Prob. 13PCh. 20 - Prob. 14PCh. 20 - Prob. 15PCh. 20 - Prob. 16PCh. 20 - Prob. 17PCh. 20 - Prob. 18PCh. 20 - The Rasputin Brewery is considering using a public...Ch. 20 - Prob. 20P
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