ch4 - Current Assets Current Liabilities Cash Accounts...

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Chapter 4 Input area: Sales $30,499,420 COGS 22,224,580 Other expenses 3,867,500 Depreciation 1,366,680 EBIT $3,040,660 Interest 478,240 Taxable income $2,562,420 Taxes (40%) 1,024,968 Net income $1,537,452 Dividends $560,000 Add to RE $977,452 Assets Current Assets Current Liabilities Cash $441,000 Accounts Payable $889,000 Accounts rec. 708,400 Notes Payable 2,030,000 Inventory 1,037,120 Total CL $2,919,000 Total CA $2,186,520 Long-term debt $5,320,000 Fixed assets $16,122,400 Shareholder Equity Common stock $350,000 Retained earnings 9,719,920 Total Equity $10,069,920 Total Assets $18,308,920 $18,308,920 Growth rate 12% Minimum FA purchase $5,000,000 Output area: Return on assets Return on equity Retention ratio Internal growth rate <<< Question 1-A Sustainable growth rate <<< Question 1-B Sales COGS Other expenses Depreciation EBIT Interest Taxable income Taxes (40%) Net income Question 1-C: What do the results above (Q1-A and Q1-B) mean?
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Dividends Add to RE Assets
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Unformatted text preview: Current Assets Current Liabilities Cash Accounts Payable Accounts rec. Notes Payable Inventory Total CL Total CA Long-term debt Fixed assets Net PP&amp;E Shareholder Equity Common stock Retained earnings Total Equity Total Assets Total L&amp;E Question 2-a: EFN = Answer: EFN if minimum FA purchase is $5,000,000 Depreciation as a percentage of sales New fixed assets Sales COGS Other expenses Depreciation EBIT Interest Taxable income Taxes (40%) Net income Dividends Add to RE Assets Liabilities &amp; Equity Current Assets Current Liabilities Cash Accounts Payable Accounts rec. Notes Payable Inventory Total CL Total CA Long-term debt Fixed assets Net PP&amp;E Shareholder Equity Common stock Retained earnings Total Equity Total Assets Total L&amp;E Question 3-A: EFN = Question 3-B: What does this (EFN in 3-A) imply about capacity utilization for the company next year Question 2-b: Can the company's sales increase at this growth rate? r?...
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ch4 - Current Assets Current Liabilities Cash Accounts...

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