RIVENDELL INC. Sales growth rate 40% Average collection period 14.08 New PPE n/a Number of days' sales in inventory 107.6 Spreadsheet Assignment, Part 1 New long-term debt n/a Number of days' purchases in A/P 48.34 Greg Haws Cash dividends n/a Short-term interest rate 6.0% Required current ratio 2.0 Long-term interest rate 8.0% Required debt ratio 80% Dividend payout ratio 40.0% Stock repurchases $50 Fixed asset turnover 3.518 Depreciation life 30 Amortization life 20 Year Forecasted 2011 2012 Assumptions (i.e. assume increase at same rate of sales) BALANCE SHEET Assets Cash 31 Investment Securities 71 Receivables 83 Inventory 468 Total Current Assets 653 Long-Term Investments 256 607 Less: Accumulated Depreciation (28) 579 Other Long-Term Assets 41 Intangible Assets 100 Total Assets 1,629 Liabilities Accounts Payable 226 Unearned Revenue 36 Short-term Loans Payable 31 Total Current Liabilities 293 Long-term Debt 665 Other Long-Term Liabilities 258 Total Liabilities
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Generally Accepted Accounting Principles, new long-term debt, Investment Securities