Q2_983 - It is now 30th September 1998. Below are the...

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Unformatted text preview: It is now 30th September 1998. Below are the actual sales for September and the projected sales for October to January. Other assumptions and information is also given. Actual/Expected sales Sep 98 140000 Oct 98 150000 Nov 98 160000 Dec 98 220000 Jan 99 140000 COGS as a percentage of Sales 65% COGS are the only variable expenses. Assume that each month has 30 days Sales % as cash 25% Rest gets received 20 days later Purchases made 15 days before goods get sold Payment for purchases made 30 days later 2 LTD remains unchanged Interest is paid on LTD at the rate of 1.5% per month Ignore depreciation/CCA Tax rate is 23% Net share repurchases On October 1st extra STD of 10000 is borrowed Interest on STD is 2.0% per month A fixed asset is purchased on Dec 1st for 25000 You are required to complete the Income Statement for the 3 month period from October 1st, to Dec 31st 1998, and also the Balance Sheet as at Dec 31st, 1998. Solution starts on cell I35 DOL for September was BUS312D Quiz #2A 98/3 Name Student # Income Statement for Oct-Dec Sales COGS Fixed costs EBITDA Dep/CCA 0.00 EBIT Interest EBT Tax Net Income Dividend To Ret. Earn. Balance Sheet Sep 30th Dec 31st Sep 30th Dec 31st Cash 12000.00 18000.00 Accounts Pay Accounts Rec STD 15000.00 Inventory 155000.00 151750.00 Taxes payable 45500.00 LTD 400000.00 Fixed Assets Equity 500000.00 Solution Income Statement for Oct-Dec Sales 530000.00 COGS 344500.00 Fixed costs 73500.00 EBITDA 112000.00 Dep/CCA 0.00 EBIT 112000.00 Interest 19500.00 EBT 92500.00 Tax 21275.00 Net Income 71225.00 Dividend 57500.00 To Ret. Earn. 13725.00 Balance Sheet Sep 30th Dec 31st Sep 30th Dec 31st Cash 12000.00 18000.00 Accounts Pay 94250.00 117000.00 Accounts Rec 70000.00 110000.00 STD 15000.00 25000.00 Inventory 155000.00 151750.00 Taxes payable 45500.00 66775.00 LTD 400000.00 400000.00 Fixed Assets 817750.00 842750.00 Equity 500000.00 513725.00 1054750.00 1122500.00 1054750.00 1122500.00 It is now 30th September 1998. Below are the actual sales for September and the projected sales for October to January. Other assumptions and information is also given. Actual/Expected sales Sep 98 140000 Oct 98 150000 Nov 98 160000 Dec 98 220000 Jan 99 140000 COGS as a percentage of Sales 65% COGS are the only variable expenses. Assume that each month has 30 days Sales % as cash 30% Rest gets received 20 days later Purchases made 15 days before goods get sold Payment for purchases made 30 days later 2 LTD remains unchanged Interest is paid on LTD at the rate of 1.0% per month Ignore depreciation/CCA Tax rate is 23% Net share repurchases On October 1st extra STD of 10000 is borrowed Interest on STD is 1.5% per month A fixed asset is purchased on Dec 1st for 25000 You are required to complete the Income Statement for the 3 month period from October 1st, to Dec 31st 1998, and also the Balance Sheet as at Dec 31st, 1998....
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Q2_983 - It is now 30th September 1998. Below are the...

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