Spreadsheet-ch04 - Solution Part 1 HANDYMAN Chapter 4, Part...

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Solution Part 1 Page 1 HANDYMAN Sales growth rate 40% Chapter 4, Part 1 New PPE $80 New long-term debt $0 Cash dividends $0 Required current ratio 2.0 NOTE: BECAUSE OF SPREADSHEET ROUNDING, NOT ALL OF THE DISPLAY Year Forecasted 2006 2007 BALANCE SHEET -------- -------- Assets Cash 10 14 Receivables 27 38 Inventory 153 214 Total Current Assets 190 266 199 279 Accumulated Depreciation 9 16 Total Assets 380 529 Liabilities Accounts Payable 74 104 Short-term Loans Payable 10 29 Total Current Liabilities 84 133 Long-term Debt 207 207 Total Liabilities 291 340 Stockholders' Equity Paid in Capital 50 136 Retained Earnings (as of 12/31) 39 53 Total Liab. and Equities 380 529 Retained Earnings (as of 1/1) 31 39 + Net Income 8 14 - Dividends 0 0 Retained Earnings (as of 12/31) 39 53 INCOME STATEMENT Sales 700 980 Cost of Goods Sold 519 727 Gross Profit 181 253 Depreciation Expense 5 7 Other Operating Expenses 155 217 Operating Income 21 29 Interest Expense 9 9 Income Before Taxes 12 20 Income Tax Expense 4 7 Net Income 8 14
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This note was uploaded on 06/20/2011 for the course ECON 123 taught by Professor Mrews during the Spring '11 term at Korea Advanced Institute of Science and Technology.

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Spreadsheet-ch04 - Solution Part 1 HANDYMAN Chapter 4, Part...

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