Only Excel - Exibit 1 Projected Income Statement for Butler...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Exibit 1 Projected Income Statement for Butler Lumber Co. for period ending December 31, 1991. (000's) Net Sales 3600 CoGS Beginning inventory 418 Purchases 2718 <- Assume 75.5% of sales based on prior 3 years Ending inventory 544 <- Calculated based on other assumptions as noted Total cost of goods sold 2592 <- Assuming previous 3-year average of 72% Gross profit 1008 Operating expense 900 Interest expense 40 <- Extrapolated from 1st qtr EBIT 68 Provision for income taxes 12 <- 15% on 50k, then 25% Net Income 56
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Exibit 2 Projected Balance Sheet for Butler Lumber Co. Ending December 31, 1991 (000's) Assets Assumptions Cash 40 <- Based on trend, to fill in after cash budget A/R net 454 <- Based on trend, previous increase was .7%, assume .7% for 1991 Inv 548 <- Based on average inv turnover of 4.73 for last 3 years Current assets 1042 Property, net 177 Total Assets 1219 Liabilities Notes payable, bank 247 <- This is at its limit N/P, Mr. Stark 0 N/P, trade 157 <- Assume this source is tapped out
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

Only Excel - Exibit 1 Projected Income Statement for Butler...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online