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1 (16 pts)Based upon your financial forecast for the years 2023 - 2027, compute the following, placing your final results in the yellow highlighted area.
1 (16 pts)Based upon your financial forecast for the years 2023 - 2027, compute the following, placing your final results in the yellow highlighted area. HINT: Taxes should NOT be included in your Fixed or Variable costs for this computation. 2023 2024 2025 2026 2027 a Total Fixed Costs 2 pts $500,000 $500,000 $500,000 $500,000 $500,000 b Total Variable Costs 2 pts $200,000 $300,000 $350,000 $400,000 $500,000 c Contribution Margin ratio (See Week 5 Lesson) 3 pts 0.600 0.400 0.300 0.200 0.000 d Breakeven in sales dollars (See Week 5 Lesson) 3 pts ($5,552,505) $1,493,056 $21,289,063 $39,916,990 $0 e DOL 3 pts f DFL 3 pts 2 (17 pts) Based upon your financial forecast for the years 2023 - 2027, computea - e below FROM THE VIEWPOINT OF THE SHARK, placing your final results in the yellow highlighted area. (HINT: Remember the shark has only 48% ownership!) 2023 2024 2025 2026 2027 Net Income 11,554,782 11,623,153 6,454,109 8,049,788 100,488,638 Change in Current Assets Change in Current Liabilities Depreciation Expense 214,000 214,000 214,000 214,000 214,000 a Cash Flows from Operations (Total for company) 3 pts ($1,000,000) b Cash Flows from Operations (shark only) 3 pts ($1,000,000) c Payback (in years) of the shark's $1M investment (x.xx years) 3 pts d IRR of shark's investment 4 pts e NPV of shark's investment 4 pts 3 (3 pts) What is the growth rate of earnings for each of the forecasted years? 2023 2024 2025 2026 2027 4 (4 pts) Compute the following for the forecasted years. (Total company) 2023 2024 2025 2026 2027 3 pts Free Cash Flow 1 pt Free Cash Flow per share
| 1 | (16 pts)Based upon your financial forecast for the years 2023 - 2027, compute the following, placing your final results in the yellow highlighted area. | |||||||||
| HINT: Taxes should NOT be included in your Fixed or Variable costs for this computation. | ||||||||||
| 2023 | 2024 | 2025 | 2026 | 2027 | ||||||
| a | Total Fixed Costs | 2 pts | $500,000 | $500,000 | $500,000 | $500,000 | $500,000 | |||
| b | Total Variable Costs | 2 pts | $200,000 | $300,000 | $350,000 | $400,000 | $500,000 | |||
| c | Contribution Margin ratio (See Week 5 Lesson) | 3 pts | 0.600 | 0.400 | 0.300 | 0.200 | 0.000 | |||
| d | Breakeven in sales dollars (See Week 5 Lesson) | 3 pts | ($5,552,505) | $1,493,056 | $21,289,063 | $39,916,990 | $0 | |||
| e | DOL | 3 pts | ||||||||
| f | DFL | 3 pts | ||||||||
| 2 | (17 pts) Based upon your financial forecast for the years 2023 - 2027, computea - e below FROM THE VIEWPOINT OF THE SHARK, | |||||||||
| placing your final results in the yellow highlighted area. (HINT: Remember the shark has only 48% ownership!) | ||||||||||
| 2023 | 2024 | 2025 | 2026 | 2027 | ||||||
| Net Income | 11,554,782 | 11,623,153 | 6,454,109 | 8,049,788 | 100,488,638 | |||||
| Change in Current Assets | ||||||||||
| Change in Current Liabilities | ||||||||||
| Depreciation Expense | 214,000 | 214,000 | 214,000 | 214,000 | 214,000 | |||||
| a | Cash Flows from Operations (Total for company) | 3 pts | ($1,000,000) | |||||||
| b | Cash Flows from Operations (shark only) | 3 pts | ($1,000,000) | |||||||
| c | Payback (in years) of the shark's $1M investment (x.xx years) | 3 pts | ||||||||
| d | IRR of shark's investment | 4 pts | ||||||||
| e | NPV of shark's investment | 4 pts | ||||||||
| 3 | (3 pts) What is the growth rate of earnings for each of the forecasted years? | |||||||||
| 2023 | 2024 | 2025 | 2026 | 2027 | ||||||
| 4 | (4 pts) Compute the following for the forecasted years. (Total company) | |||||||||
| 2023 | 2024 | 2025 | 2026 | 2027 | ||||||
| 3 pts | Free Cash Flow | |||||||||
| 1 pt | Free Cash Flow per share | |||||||||
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
10th Edition
1119491630, 978-1119491637, 978-0470534793
