Assets
2018
Amount
Amount
Net Sales
$3,000,000.00
Cash &
equivalents
$10,000.00
Variable Cost (75% of
sales)...
Assets
2018
Amount
Amount
Net Sales
$3,000,000.00
Cash &
equivalents
$10,000.00
Variable Cost (75% of
sales)
$2,250,000.00
Accounts
Receivable
$25,000.00
Inventory
$15,000.00
Gross profit
$750,000.00
Total current
assets
$50,000.00
Fixed Cost
$100,000.00
Net Plant and
equipment
$60,000.00
Earnings
before interest, taxes dp and amort.
$650,000.00
Total
assets
$110,000.00
Depreciation
$35,000.00
Net OP. Income
(EBIT)
$615,000.00
Liabilities
and equity
Interest
$12,000.00
Accounts payable
$7,000.00
Earnings before
taxes
$603,000.00
Accruals
$3,000.00
Taxes (40%)
$241,200.00
Notes payable
$5,000.00
Net
Income
$361,800.00
Total current...
Based on Jim's expectation of 9.9% sales growth and payout
ratio of 89.86% of net income...
Based on Jim's expectation of 9.9% sales growth and payout
ratio of 89.86% of net income next year, Jim developed the pro
forma financial statements given below. What is the amount of net
new financing needed for Jim's Espresso?
Income Statement Balance Sheet
Sales $222,405 Assets
Costs Except Depreciation (109,120) Cash and
Equivalents $16,375
EBITDA $113,285 Accounts
Receivable 2,308
Depreciation (6,616) Inventories
4,484
EBIT $106,669 Total Current Assets
$23,167
Interest Expense (net) (429) Property, Plant, and
Equipment ...
Assets
2019
Net Sales
$5,000,000.00
Cash &
equivalents
$20,000.00
Variable Cost (75% of
sales)
$3,750,000.00
Accounts...
Assets
2019
Net Sales
$5,000,000.00
Cash &
equivalents
$20,000.00
Variable Cost (75% of
sales)
$3,750,000.00
Accounts
Receivable
$15,000.00
Inventory
$10,000.00
Gross profit
$1,250,000.00
Total current
assets
$45,000.00
Fixed Cost
$100,000.00
Net Plant and
equipment
$50,000.00
Earnings
before interest, taxes dp and amort.
$1,150,000.00
Total
assets
$95,000.00
Depreciation
$35,000.00
Net OP. Income
(EBIT)
$1,115,000.00
Liabilities
and equity
Interest
$12,000.00
Accounts payable
$5,000.00
Earnings before
taxes
$1,103,000.00
Accruals
$2,000.00
Taxes (40%)
$441,200.00
Notes payable
$10,000.00
Net
Income
$661,800.00
Total current
liabilities
$17,000.00...
Net sales
$7,245,088
$6,944,296
$6,149,218
Cost of goods sold
(5,286,253)
(4,953,556)
(4,355,675)
Gross margin
$1,958,835
$1,990,740...
Net sales
$7,245,088
$6,944,296
$6,149,218
Cost of goods sold
(5,286,253)
(4,953,556)
(4,355,675)
Gross margin
$1,958,835
$1,990,740
$1,793,543
General and administrative
expenses
(1,259,896)
(1,202,042)
(1,080,843)
Special and nonrecurring items
2,617
-
-
Operating income
$701,556
$788,698
$712,700
Interest expense
(63,685)
(62,398)
(63,927)
Other income
7,308
10,080
11,529
Gain on sale of investments
-
9,117
-
Income before income taxes
$645,179
$745,497
$660,302
Provision for income taxes
254,000
290,000
257,000
Net income
$391,179
$455,497
$403,302
Net income per share
$1.08
$1.25
$1.11...
Jim's Espresso expects sales to grow by 10.2 % next year. Using
the following statements and...
Jim's Espresso expects sales to grow by 10.2 % next year. Using
the following statements and the percent of sales method,
forecast:
a. Costs
b. Depreciation
c. Net Income
d. Cash
e. Accounts receivable
f. Inventory
g. Property, plant, and equipment
(Note: Make sure to round all intermediate calculations to at
least five decimal places.)
Income Statement
Sales $208,110
Costs Except Depreciation (99,770)
EBITDA $108,340
Depreciation (5,900)
EBIT $102,440
Interest Expense (net) (520)
Pretax Income $101,920
Income Tax (35,672)
Net...
Lloyd Inc. has sales of $450,000, a net income of $36,000, and
the following balance sheet:...
Lloyd Inc. has sales of $450,000, a net income of $36,000, and
the following balance sheet:
Cash
$148,770
Accounts payable
$117,450
Receivables
244,035
Notes payable to bank
71,775
Inventories
613,350
Total current liabilities
$189,225
Total current assets
$1,006,155
Long-term debt
207,495
Net fixed assets
298,845
Common equity
908,280
Total assets
$1,305,000
Total liabilities and equity
$1,305,000
The new owner thinks that inventories are excessive and can be
lowered to the point where the current...
Lloyd Inc. has sales of $500,000, a net income of $35,000, and
the following balance sheet:...
Lloyd Inc. has sales of $500,000, a net income of $35,000, and
the following balance sheet:
Cash
$
144,450
Accounts payable
$
141,750
Receivables
194,400
Notes payable to bank
102,600
Inventories
499,500
Total current liabilities
$
244,350
Total current assets
$
838,350
Long-term debt
189,000
Net fixed assets
511,650
Common equity
916,650
Total assets
$
1,350,000
Total liabilities and equity
$
1,350,000
The new owner thinks that inventories are excessive and can be
lowered...
Lloyd Inc. has sales of $750,000, a net income of $67,500, and
the following balance sheet:...
Lloyd Inc. has sales of $750,000, a net income of $67,500, and
the following balance sheet: Cash $168,000 Accounts payable
$171,000 Receivables 261,000 Notes payable to bank 45,000
Inventories 855,000 Total current liabilities $216,000 Total
current assets $1,284,000 Long-term debt 249,000 Net fixed assets
216,000 Common equity 1,035,000 Total assets $1,500,000 Total
liabilities and equity $1,500,000 The new owner thinks that
inventories are excessive and can be lowered to the point where the
current ratio is equal to the industry...
Lloyd Inc. has sales of $400,000, a net income of $32,000, and
the following balance sheet:...
Lloyd Inc. has sales of $400,000, a net income of $32,000, and
the following balance sheet:
Cash
$86,400
Accounts payable
$97,200
Receivables
146,880
Notes payable to bank
37,800
Inventories
421,200
Total current liabilities
$135,000
Total current assets
$654,480
Long-term debt
214,920
Net fixed assets
425,520
Common equity
730,080
Total assets
$1,080,000
Total liabilities and equity
$1,080,000
The new owner thinks that inventories are excessive and can be
lowered to the point where the current...