2passproblem - Lab 4: 2 pass AFN problem You have been...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Lab 4: 2 pass AFN problem You have been given the attached information on the Crum Company. Crum expects sales to grow by 50% in 2001, and operating costs should increase at the same percentage. Fixed assets were being operated at 40% of capacity in 2000, but all other assets were used to full capacity. Underutilized fixed assets cannot be sold. Current assets and spontaneous liabilities should increase at the same rate as sales during 2001. The company plans to finance any external funds needed as 35% notes payable and 65% common stock. After taking financing feedbacks into account, and after the second pass, what is Crum's projected AFN using the projected balance sheet method? A blank worksheet to project the balance sheet using the percentage of sales method follows. Year 2000 information on the Crum Company is for “last” year: 2001 2001 2000 1st pass 2nd pass Sales $1,000.00 Operating costs 800.00 _________ _________ EBIT $ 200.00 Interest 16.00 ________ _________ EBT $ 184.00
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/08/2010 for the course AGEC 424 taught by Professor Staff during the Spring '08 term at Purdue University-West Lafayette.

Page1 / 2

2passproblem - Lab 4: 2 pass AFN problem You have been...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online