On the basis of Malik ? s forecast, how much debt will Guna need to arrange for
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On the basis of Maliks forecast, how much debt will Guna need to arrange for the coming year? Will Guna be able to zero out the line of credit this year? If not, what is the cause of Gunas ongoing need for debt?
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Assumptions Excise Tax Rate Annual Operating Expenses / Annual Gr Sales Depreciation / Gross PPE Interest Rate on Borrowings (and Deposits) Income Tax Rate Dividends Paid (in March, June, Sep, Dec) Implied Operating Margin Gross Sales Excise Taxes (1) Net Sales Cost of Goods Sold (2) Gross Profit Operating Expenses (3) Depreciation (4) Interest Expense (5) Profit Before Taxes Income Taxes Net Profit Dividend Cash Accounts Receivable (6) Inventory Total Current Assets Gross PPE (7) Accumulated Depreciation Net PPE Total Assets Accounts Payable (8) Note Payable (9) Accrued Taxes (10) Total Current Liabilities Shareholders' Equity (11) Total Liabilities and Equity Inventory Detail Purchases (12) Direct Labor and Other Miftg Costs (13) Cost of Goods Sold Inventory (14) Nov-11 14.4 0000 in 00 26.3% Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 27.2 22.1 26.2 28.9 44.5 3.9 4.3 6.7 13.2 22.2 24.6 37.8 74.8 19.3 21.3 32.8 3.0 3.3 5.0 4.5 4.5 0.9 0.6 -1.0 -0.3 -0.7 5.0 0.8 0.1 OOOH Exhibit 5 GUNA FIBRES, LTD. Guna Fibres Annual Income Statements (in millions of Indian rupees) -2.5 -0.8 -1.8 15% 6.0% 10% 14.5% 30% 5.0 52376 in ww 0.8 0.2 -2.3 -0.7 -1.6 COO 262699 4.5 0.9 1.4 NOW: Full year May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Dec-12 Jan-13 Feb-13 88.0 138.9 175.9 163.2 85.8 50.3 44.5 35.3 27.7 909.0 34.0 36.2 20.8 26.4 24.5 12.9 7.5 6.7 5.3 4.2 136.3 118.0 149.5 138.7 72.9 42.8 37.8 30.0 64.9 102.3 129.6 120.2 63.2 37.1 32.8 26.0 15.7 19.9 9.7 5.7 5.0 4.5 4.5 18.4 4.0 4.5 4.5 0.9 0.9 3.4 2.0 1.0 0.6 3.1 0.9 Minimum Cash Balance Accounts Receivable Collection In One Month In Two Months Purchases/Gr Sales in Two Months Direct Labor / Purchases Last Month Capital Expenditures (every third month) Accounts Payable / Purchases 2.2 Dec-11 Jan-12 Feb-12 Mar-12 7.6 7.5 7.5 26.7 27.7 32.9 34.5 45.1 80.5 7.5 50.1 103.0 140.6 198.4 308.9 68.8 80.3 120.9 198.2 100.9 100.9 100.9 104.4 17.4 14.8 86.1 154.9 104.4 15.6 16.5 18.2 85.3 84.4 87.0 86.2 165.6 205.3 285.2 395.0 48.4 215.7 -1.7 8.2 12.2 24.2 38.2 8.0 17.1 47.2 119.1 -0.9 -1.7 -2.4 -2.6 15.3 27.7 69.1 154.6 262.3 139.6 137.9 136.2 130.6 132.7 154.9 165.6 205.3 285.2 395.0 4.5 4.5 4.5 0.9 +43660 977259 0.9 O mom 24592000 in 2.6 7.7 10.7 8.8 2.3 3.7 4.2 5.0 0.9 0.9 0.9 o do 3.2 2.6 0.3 5.4 7.5 6.2 0.6 90005 195 7.5 0.9 -1.8 -1.5 -0.5 -0.4 40% 60% 55% 34% 3.50 50% -1.2 -1.0 5.0 9.4 8.3 63.2 37.1 60.9 51.5 -2.1 -0.6 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 7.5 7.5 37.1 44.3 88.9 114.9 7.5 7.5 7.5 7.5 7.5 7.5 7.5 179.9 247.5 256.9 171.9 90.0 62.9 50.3 218.7 166.7 90.2 60.9 51.5 40.6 38.4 406.1 421.7 354.6 240.3 149.0 111.0 96.2 104.4 107.9 107.9 107.9 111.4 111.4 111.4 19.1 20.0 20.9 21.8 22.7 23.6 24.6 25.5 85.3 87.9 87.0 86.1 88.7 87.8 86.8 89.4 491.4 509.6 441.6 326.4 237.7 198.7 183.0 178.3 44.9 23.6 13.8 12.2 9.7 7.6 9.4 9.9 307.9 345.4 278.4 163.9 86.9 51.5 36.1 38.6 0.6 0.0 2.6 2.9 0.0 -0.4 -1.1 -1.9 353.3 369.0 294.9 179.0 96.6 58.6 44.4 46.6 138.1 140.6 146.8 147.4 141.1 140.1 138.6 131.6 491.4 509.6 441.6 326.4 237.7 198.7 183.0 178.3 23.5 772.6 20.4 669.9 3.1 102.7 4.5 54.5 1.0 10.7 0.4 20.3 17.2 -2.8 -0.8 -1.5 -2.0 5.0 SO40000 C 6.6 5.2 32.8 26.0 40.6 38.4 5.2 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jul-05 89.7 47.2 27.7 24.5 19.4 15.2 18.7 19.9 508.2 15.9 24.5 48.4 76.4 96.7 4.9 5.4 8.3 16.5 26.0 19.3 21.3 32.8 64.9 34.5 45.1 80.5 140.6 198.4 32.9 30.5 16.0 102.3 129.6 120.2 218.7 166.7 90.2 12.0 6.4 171.4 20.4 44.3 Assumptions Excise Tax Rate Annual Operating Expenses / Annual Gr Sales Depreciation / Gross PPE Interest Rate on Borrowings (and Deposits) Income Tax Rate Dividends Paid (in March, June, Sep, Dec) Implied Operating Margin Gross Sales Excise Taxes (1) Net Sales Cost of Goods Sold (2) Gross Profit Operating Expenses (3) Depreciation (4) Interest Expense (5) Profit Before Taxes Income Taxes Net Profit Dividend Cash Accounts Receivable (6) Inventory Total Current Assets Gross PPE (7) Accumulated Depreciation Net PPE Total Assets Accounts Payable (8) Note Payable (9) Accrued Taxes (10) Total Current Liabilities Shareholders' Equity (11) Total Liabilities and Equity Inventory Detail Purchases (12) Direct Labor and Other Miftg Costs (13) Cost of Goods Sold Inventory (14) Nov-11 14.4 0000 in 00 26.3% Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 27.2 22.1 26.2 28.9 44.5 3.9 4.3 6.7 13.2 22.2 24.6 37.8 74.8 19.3 21.3 32.8 3.0 3.3 5.0 4.5 4.5 0.9 0.6 -1.0 -0.3 -0.7 5.0 0.8 0.1 OOOH Exhibit 5 GUNA FIBRES, LTD. Guna Fibres Annual Income Statements (in millions of Indian rupees) -2.5 -0.8 -1.8 15% 6.0% 10% 14.5% 30% 5.0 52376 in ww 0.8 0.2 -2.3 -0.7 -1.6 COO 262699 4.5 0.9 1.4 NOW: Full year May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Dec-12 Jan-13 Feb-13 88.0 138.9 175.9 163.2 85.8 50.3 44.5 35.3 27.7 909.0 34.0 36.2 20.8 26.4 24.5 12.9 7.5 6.7 5.3 4.2 136.3 118.0 149.5 138.7 72.9 42.8 37.8 30.0 64.9 102.3 129.6 120.2 63.2 37.1 32.8 26.0 15.7 19.9 9.7 5.7 5.0 4.5 4.5 18.4 4.0 4.5 4.5 0.9 0.9 3.4 2.0 1.0 0.6 3.1 0.9 Minimum Cash Balance Accounts Receivable Collection In One Month In Two Months Purchases/Gr Sales in Two Months Direct Labor / Purchases Last Month Capital Expenditures (every third month) Accounts Payable / Purchases 2.2 Dec-11 Jan-12 Feb-12 Mar-12 7.6 7.5 7.5 26.7 27.7 32.9 34.5 45.1 80.5 7.5 50.1 103.0 140.6 198.4 308.9 68.8 80.3 120.9 198.2 100.9 100.9 100.9 104.4 17.4 14.8 86.1 154.9 104.4 15.6 16.5 18.2 85.3 84.4 87.0 86.2 165.6 205.3 285.2 395.0 48.4 215.7 -1.7 8.2 12.2 24.2 38.2 8.0 17.1 47.2 119.1 -0.9 -1.7 -2.4 -2.6 15.3 27.7 69.1 154.6 262.3 139.6 137.9 136.2 130.6 132.7 154.9 165.6 205.3 285.2 395.0 4.5 4.5 4.5 0.9 +43660 977259 0.9 O mom 24592000 in 2.6 7.7 10.7 8.8 2.3 3.7 4.2 5.0 0.9 0.9 0.9 o do 3.2 2.6 0.3 5.4 7.5 6.2 0.6 90005 195 7.5 0.9 -1.8 -1.5 -0.5 -0.4 40% 60% 55% 34% 3.50 50% -1.2 -1.0 5.0 9.4 8.3 63.2 37.1 60.9 51.5 -2.1 -0.6 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 7.5 7.5 37.1 44.3 88.9 114.9 7.5 7.5 7.5 7.5 7.5 7.5 7.5 179.9 247.5 256.9 171.9 90.0 62.9 50.3 218.7 166.7 90.2 60.9 51.5 40.6 38.4 406.1 421.7 354.6 240.3 149.0 111.0 96.2 104.4 107.9 107.9 107.9 111.4 111.4 111.4 19.1 20.0 20.9 21.8 22.7 23.6 24.6 25.5 85.3 87.9 87.0 86.1 88.7 87.8 86.8 89.4 491.4 509.6 441.6 326.4 237.7 198.7 183.0 178.3 44.9 23.6 13.8 12.2 9.7 7.6 9.4 9.9 307.9 345.4 278.4 163.9 86.9 51.5 36.1 38.6 0.6 0.0 2.6 2.9 0.0 -0.4 -1.1 -1.9 353.3 369.0 294.9 179.0 96.6 58.6 44.4 46.6 138.1 140.6 146.8 147.4 141.1 140.1 138.6 131.6 491.4 509.6 441.6 326.4 237.7 198.7 183.0 178.3 23.5 772.6 20.4 669.9 3.1 102.7 4.5 54.5 1.0 10.7 0.4 20.3 17.2 -2.8 -0.8 -1.5 -2.0 5.0 SO40000 C 6.6 5.2 32.8 26.0 40.6 38.4 5.2 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jul-05 89.7 47.2 27.7 24.5 19.4 15.2 18.7 19.9 508.2 15.9 24.5 48.4 76.4 96.7 4.9 5.4 8.3 16.5 26.0 19.3 21.3 32.8 64.9 34.5 45.1 80.5 140.6 198.4 32.9 30.5 16.0 102.3 129.6 120.2 218.7 166.7 90.2 12.0 6.4 171.4 20.4 44.3
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To determine the amount of debt that Guna Fibres will need to arrange for the coming year we need to analyze the cash flow and funding requirements of ... View the full answer
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Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
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