fm14 11 - A. 2007 Balance Sheet % of % of sales sales Cash...

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Mini Case: 14 - 11 Betty Simmons, the new financial manager of Southeast Chemicals (SEC), a Georgia producer of specialized chemicals for use in fruit orchards, must prepare a financial forecast for 2008. SEC’s 2007 sales were $2 billion, and the marketing department is forecasting a 25 percent increase for 2008. Simmons thinks the company was operating at full capacity in 2007, but she is not sure about this. The 2007 financial statements, plus some other data, are shown below. Assume that you were recently hired as Simmons’ assistant, and your first major task is to help her develop the forecast. She asked you to begin by answering the following set of questions. Financial Statements And Other Data On SEC (Millions Of Dollars)
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Unformatted text preview: A. 2007 Balance Sheet % of % of sales sales Cash & Securities $ 20 1% Accounts Payable And Accruals $ 100 5% Accounts Receivable 240 12 Notes Payable 100 Inventory 240 12 Total Current Liabilities $ 200 Total Current Assets $ 500 Long-Term Debt 100 Net Fixed Assets 500 25 Common Stock 500 Retained Earnings 200 Total Assets $1,000 Total Liabilities And Equity $1,000 B. 2007 Income Statement % of sales Sales $2,000.00 Cost Of Goods Sold (COGS) 1,200.00 60% Sales, General, And Administrative Costs 700.00 35 Earnings Before Interest And Taxes $ 100.00 Interest 10.00 Earnings Before Taxes $ 90.00 Taxes (40%) 36.00 Net Income $ 54.00 Dividends (40%) $ 21.60 Addition To Retained Earnings $ 32.40 MINI CASE...
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This note was uploaded on 07/13/2011 for the course FIN 4414 taught by Professor Staff during the Spring '08 term at University of Florida.

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