4.) Based on Jims expectation of9.7 9.7sales growth and payou.docx

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4.) Based on Jim's expectation of 9.7 %9.7% sales growth and payout ratio of 80.96 %80.96% 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?Click on the icon located on the top-right corner of the data table below to copy its contents into a spreadsheet. Pro Forma Financial Statements Income Statement Balance Sheet Sales $ 211 comma 140$211,140 Assets Costs Except Depreciation ( 109 comma 031 )(109,031) Cash and Equivalents $ 16 comma 400$16,400 EBITDA $ 102 comma 109$102,109 Accounts Receivable 2 comma 2822,282 Depreciation ( 6 comma 626 )(6,626) Inventories 4 comma 4984,498
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EBIT $ 95 comma 483$95,483 Total Current Assets $ 23 comma 180$23,180 Interest Expense (net) ( 516 )(516) Property, Plant, and Equipment 10 comma 87110,871 Pre-tax Income $ 94 comma 967$94,967 Total Assets $ 34 comma 051$34,051 Income Tax ( 33 comma 238 )(33,238) Net Income $ 61 comma 729$61,729 Liabilities and Equity Accounts Payable $ 1 comma 580$1,580 Debt 3 comma 9703,970 Total Liabilities $ 5 comma 550$5,550 Stockholders' Equity $ 37 comma 383$37,383 Total Liabilities and Equity $ 42 comma 933$42,933 The Tax Cuts and Jobs Act of 2017 temporarily allows 100%
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bonus depreciation (effectively expensing capital
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Unformatted text preview: expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. (Select from the drop-down menu.) The total new excess required financing will be $____ (Round to the nearest dollar.) Income Statement Balance Sheet Sales $ 211 comma 140$211,140 Assets Costs Except Depreciation ( 109 comma 031 )(109,031) Cash and Equivalents $ 16 comma 400$16,400 EBITDA $ 102 comma 109$102,109 Accounts Receivable 2 comma 2822,282 Depreciation ( 6 comma 626 )(6,626) Inventories 4 comma 4984,498 EBIT $ 95 comma 483$95,483 Total Current Assets $ 23 comma 180$23,180 Interest Expense (net) ( 516 )(516) Property, Plant, and Equipment 10 comma 87110,871 Pre-tax Income $ 94 comma 967$94,967 Total Assets $ 34 comma 051$34,051 Income Tax ( 33 comma 238 )(33,238) Net Income $ 61 comma 729$61,729 Liabilities and Equity Accounts Payable $ 1 comma 580$1,580 Debt 3 comma 9703,970 Total Liabilities $ 5 comma 550$5,550 Stockholders' Equity $ 37 comma 383$37,383 Total Liabilities and Equity $ 42 comma 933$42,933...
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