Hiller Round 3 12 font

Hiller Round 3 12 font - Hiller Assumptions Round 3 Account...

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Hiller Assumptions Round 3 ROUND 1 Account Receivables 0.22 0.15 Inventories 0.2 0.2 Depreciation(Bldg) 15 15 Depreciation(Equip) 5 5 Accts. Payable 0.1 0.1 Accruals 0.08 0.05 Beginning unit sales 5000 5000 Selling price 45 40 Unit sales growth 0.25 0.35 Variable cost of goods 0.3 0.25 Variable operating exp. 0.2 0.2 LOC/other l.t. debt interest rate 0.08 0.12 Mortgage interest 0.1 0.1 Maximum debt ratio 0.7 0.6 Tax rate 0.25 0.3 Annual equipment purchases 40000 10000 10000 YEAR 1 YEAR 2 YEAR 3 Sales 225000 281250 351562.5 Cost of goods Fixed 60000 60000 75000 Variable 67500 84375 ### Gross profit 97500 136875 ### Opersting expenses Fixed 45000 45000 55000 Variable 45000 56250 70312.5 Depreciation 14000 16000 18000 Total operating expenses 104000 117250 143312.5 Earnings before interest and tax -6500 19625 27781.25 Interest 8568.32 8248.8 7667.77 Earnings before tax ### 11376.2 20113.48 Cumulative earnings before tax ### -3692.12 16421.36 Tax 0 0 4105.34 Earnings after tax ### 11376.2 16008.14 Cash 10000 10000 10000 Accounts receivable 49500 61875 77343.75 Inventories 45000 56250 70312.5 Total current assets 104500 128125 ### Equipment 40000 50000 60000 Acc. Dep. -8000 -18000 -30000 Building 90000 90000 90000 Acc. Dep -6000 -12000 -18000 Total fixed assets 116000 110000 102000 Total Assets 220500 238125 ### Liabilities Accounts Payable 22500 28125 35156.25
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Accruals 18000 22500 28125 Line of credit 19211.41 22581.66 26792.02 Current liabilities 59711.41 73206.66 90073.27 Mortgage 44214.32 43350.07 42399.39 Other L-T debt 31642.59 25260.39 14867.57
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Hiller Round 3 12 font - Hiller Assumptions Round 3 Account...

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