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Hiller Solution Round 1 12 font

Hiller Solution Round 1 12 font - Account Receivables...

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Account Receivables 0.15 Inventories 0.20 Depreciation(Bldg) 15.00 Depreciation(Equip) 5.00 Accts. Payable 0.10 Accruals 0.05 Beginning unit sales 5000.00 Selling price 40.00 Unit sales growth 0.35 Variable cost of goods 0.25 Variable operating exp. 0.20 LOC/other l.t. debt interest rate 0.12 Mortgage interest 0.10 Maximum debt ratio 0.70 Tax rate 0.30 Annual equipment purchases 40000.00 10000.00 YEAR 1 YEAR 2 Sales 200000.00 270000.00 Cost of goods Fixed 60000.00 60000.00 Variable 50000.00 67500.00 Gross profit 90000.00 142500.00 Opersting expenses Fixed 45000.00 45000.00 Variable 40000.00 54000.00 Depreciation 14000.00 16000.00 Total operating expenses 99000.00 115000.00 Earnings before interest and tax -9000.00 27500.00 Interest 9311.68 7999.57 Earnings before tax -18311.68 19500.43 Cumulative earnings before tax -18311.68 1188.75 Tax 0.00 356.62 Earnings after tax -18311.68 19143.81 Balance Sheet YEAR 1 YEAR 2 Cash 10000.00 10000.00 Accounts receivable 30000.00 40500.00 Inventories 40000.00 54000.00 Total current assets 80000.00 104500.00 Equipment 40000.00 50000.00 Acc. Dep. -8000.00 -18000.00 Building 90000.00 90000.00 Acc. Dep -6000.00 -12000.00 Total fixed assets 116000.00 110000.00 Total Assets 196000.00 214500.00
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YEAR 1 YEAR 2 Liabilities Accounts Payable 20000.00 27000.00 Accruals 10000.00 13500.00 Line of credit 15713.95 19211.41 Current liabilities 45713.95 59711.41 Mortgage 44214.32 43350.07 Other L-T debt 24383.42 10606.40 Total debt 114311.68 113667.88 Equity Common stock 70000.00
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