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Suppose a company had the following Financial Statement Information. Balance Sheet 2015 2015 (Revised) 2016 2016...

Suppose a company had the following Financial Statement Information.

Balance Sheet 2015 2015 (Revised) 2016 2016 (Revised) 2017 2017 (Revised)

Total CA 3700 3700 4000 4000 4200 4200

Fixed Assets 8800 8700 9000

Total Assets 12500 12700 13200

Total Current Liabilities 2500 2500 2800 2800 3100 3100

Total Non Current Liabilities 6500 6500 7200

Total Liabilities 9000 9300 10300

Total Stockholder Equity 3500 3400 2900

Total Liabilities and Equity 12500 12700 13200

Income Statement 2015 2015 (Revised) 2016 2016 (Revised) 2017 2017 (Revised)

Total Revenues 30000 30000 32000 32000 35000 35000

COGS 27322 27322 30000 31650 31650

Depreciation 1100 1300 1400

Operating Income (EBIT) 1578 700 1950

Interest 478 478 500 500 550 550

Earnings Before Taxes 1100 200 1400

Income Taxes 275 50 350

Net Income 825 150 1050

In the Notes to the financial statements they disclose an asset impairment charge of $600 in 2016 that is currently expensed as part of their COGS. How would you modify the financial statements to spread that charge over the three years given? Assume that the tax rate is 25% for any adjustments that you make.

                                                2015 2015 (Revised)              2016 2016 (Revised)            2017 2017 (Revised)

Total Liabilities / Total Equity

Revenues / Fixed Assets

EBIT / Revenues

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