Question

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 Income   $66,248

Balance Sheet

Assets Cash and Equivalents $15,020

Accounts Receivable 2,030

Inventories 3,930

Total Current Assets $20,980

Property, Plant and Equipment 10,100

Total Assets $31,080

Liabilities and Equity Accounts Payable $1,400

Debt 4,060 Total Liabilities $5,460

Stockholders' Equity 25,620

Total Liabilities and Equity $31,080

Business   Finance   
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Homework Answers

Answer #1
Present Calculation Forcasted
Sales 208,110 (208,110*110.2%) 229,337.22
a. Costs 99,770 (99,770/208,110*229,337.22) 109,946.54
b. Depreciation 5,900 (5,900/208,110*229,337.22) 6,501.80
c. Net Income 66,248 (66,248/208,110*229,337.22) 73,005.30
d. Cash 15,020 (15,020/208,110*229,337.22) 16,552.04
e. Accounts receivable 2,030 (2,030/208,110*229,337.22) 2,237.06
f. Inventory 3,930 (3,930/208,110*229,337.22) 4,330.86
g.​ Property, plant, and equipment 10,100 (10,100/208,110*229,337.22) 11,130.20
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