Week 3 OAES Template

Week 3 OAES Template - Income taxes 120 27.91% 447.96 Net...

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

View Full Document Right Arrow Icon
Week 3 OAES Homework - MMBA 6550 Problem 1 Example Company Balance Sheet Dec 31, 2008 CY 2008 Forecasted Cash $ 540 1697 Other current assets 350 350 Property, plant, and equipment, net 1,000 1,000 Total assets $ 1,890 3,047 Accounts payable $ 100 100 Loans payable 1,000 1,000 Common Stock and Paid-in capital 100 100 Retained earnings 690 690 Total liabilities and stockholders’ equity $ 1,890 1,890 Example Company Statement of Operations For the Year Ended December 31, 2008 CY 2008 Forecasted Revenues $ 2,000 3,000 Cost of goods sold 850 42.5% 1275 Gross margin $ 1,150 CALC 1,725 CALC Depreciation expense 150 N/A 0 N/A Other operating expenses 450 22.5% 0 Operating profit $ 550 CALC 1,725 CALC Net Interest expense 120 N/A 120 N/A Income before taxes $ 430 CALC 1,605 CALC
Background image of page 1

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

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

Unformatted text preview: Income taxes 120 27.91% 447.96 Net income $ 310 CALC 1,157 CALC Note: You could easily change the $ sign to £ and the result would be the same. Change, keep, or add numbers here based on yo assumptions Assumptions: Ending cash + forecasted net income + depreciation No change Reduce by current year depreciation Same as total equity and liabilities No change No change No change Last year + forecasted net income Prepare income statement first. Input forecasted revenues here. The expense ratio is the same as in CY 2008 The expense ratio is the same as in CY 2008 No change from last year. Taxes based on taxable income our...
View Full Document

This note was uploaded on 11/13/2010 for the course MMBA 6550 taught by Professor Pamelalegner during the Spring '12 term at Walden University.

Page1 / 2

Week 3 OAES Template - Income taxes 120 27.91% 447.96 Net...

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