Computer_lab_2_Solutions

Computer_lab_2_Solutions - New England Corporation...

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New England Corporation 2003 2004 2005 2006 2007 Assumed Financial Plan Actual Actual Actual Actual Forecast % of Sales Key Assumptions Sales Growth Rate 24.3% 19.8% 22.0% Tax Rate 44.1% 44.1% 40.1% 42.8% Dividend Payout Rate 36.0% 38.2% 38.5% 37.5% Interest Rate on Short-Term Debt 6.3% 6.5% 7.2% 7.2% Interest Rate on Long-Term Debt 5.3% 5.5% 6.0% 6.0% Income Statement (Mil.$) Sales $62.50 $77.67 $93.02 $113.51 Cost of Goods Sold $39.12 $50.58 $60.19 $72.80 64.1% $4.88 $5.74 $6.84 $8.53 7.5% Depreciation Expense $4.27 $4.90 $6.61 $7.66 6.7% EBIT $14.23 $16.46 $19.39 $24.52 Interest Expense $3.67 $5.05 $6.71 $6.72 Pre-tax Income $10.56 $11.41 $12.68 $17.80 Taxes $4.66 $5.04 $5.09 $7.62 Net Income $5.90 $6.37 $7.59 $10.18 Allocation of Net Income: Dividends $2.12 $2.43 $2.92 $3.82 Addition to Retained Earnings $3.78 $3.94 $4.67 $6.36 Balance Sheet (Mil.$) Assets Current Assets $2.86 $4.27 $5.11 $5.92 $7.48 6.6% Receivables $13.79 $16.34 $19.28
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This note was uploaded on 02/22/2012 for the course BUS M 401 taught by Professor Toddmitton during the Winter '10 term at BYU.

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Computer_lab_2_Solutions - New England Corporation...

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