EFM-03problem

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03problem 3/22/2010 7:08 Chapter 3. Solution to End-of-Chapter Comprehensive/Spreadsheet P Problem 3-15 Laiho Industries December 31 Balance Sheets (in thousands of dollars) 2005 2004 Assets Cash and cash equivalents \$102,850 \$89,725 Accounts receivable 103,365 85,527 Inventories 38,444 34,982 Total current assets \$244,659 \$210,234 Net fixed assets 67,165 42,436 Total assets \$311,824 \$252,670 Liabilities and equity Accounts payable \$30,761 \$23,109 Accruals 30,477 22,656 Notes payable 16,717 14,217 Total current liabilities \$77,955 \$59,982 Long-term debt 76,264 63,914 Total liabilities \$154,219 \$123,896 Common stock 100,000 90,000 Retained Earnings 57,605 38,774 Total common equity \$157,605 \$128,774 Total liabilities and equity \$311,824 \$252,670 a. Sales for 2005 were \$455,150,000, and EBITDA was 15 percent of sales. Furthermore, depreciation amounted to 11 percent of net fixed assets, interest charges were \$8,575,000, corporate tax rate was 40 percent, and Laiho pays 40 percent of its net income out in divid The firm has no amortization expense. Given this information, construct Laiho’s 2005 inc The input information required for the problem is outlined in the "Key Input Data" section b this data and the balance sheet above, we constructed the income statement shown below.

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## This note was uploaded on 03/21/2010 for the course BUSINESS AB102 taught by Professor Woo during the Spring '10 term at Nanzan.

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EFM-03problem - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17...

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