Question

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Posted on Jul 15, 2024

1. Use the percent of sales method and the following assumptions: (1) sales in FY 2019 will be $797.3359; (2) the tax rate will be

1. Use the percent of sales method and the following assumptions: (1) sales in FY 2019 will be $797.3359; (2) the tax rate will be 35%; (3) each item that changes with sales will be the five-year average percentage of sales; (4) net fixed assets will increase to $300; and (5) the common dividend will be $0.75 per share. Use your judgment on all other items.

a. What is the discretionary financing needed in 2019? Is this a surplus or deficit?

b. Assume that the DFN will be absorbed by long-term debt and that the interest rate is 4% of LTD. Set up an iterative worksheet to eliminate it.

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O H the Allir les ac 3 All figure in million Dollar cooperare 4 Jun '18 Jun '17 Jan '18 Jun '13 Jun '14 3 S 794292 736.500 745.639 729083 729373 Cost of Good Sold COS) DRA 351 344 300153 39340 Greece SORA EDIT Operating Income) 19 65.834 0.439 10 new 1618 7340 11 OneNet 1206 -1485 993 0600 40 500 0 000 0334 4133 14 cm 39 1948 1947 1903.455 15 Setem 36.637 37.542 42.331 33.478 16 200 200 149 27.5 20 Duted Shame Outstandin 21 Total Shoes Outstandin 22 Die per See 23 Proute 2884 9 110 20 68.19 105.53 8918 1935 33.0 6593 26 ET 22 Deprecatione & Anti Expert 50.44 188 30 Source : Facetundentale All Beretta millions of US Dollar,escopper charms 18 17 16 15 14 As Cash 319 9.467 12941 12271 14919 162.323 191916 146 279 137236 193.79 10 Current Att 11 Toral Current 13 Acceder 14 SetProperty Plant Rult 15 Le Terms Total Assets 248.704 70693086 098 1936 1010 000 324649 11317 31393 300 TIJ 2016 273.619 277019 235.156 291.672 293.893 $77407 407.308 86.4 617.385 61.788 0.480 0.250 16.946 19 ST Debt Cut Porte Debt 20 Accueil Pryable | 2 Tealiris 23 Long Term Date 24 Ore Lab Company 193.347 140. 186.047 139.939 151077 38.37 14.227 10:411 130.309 154.280 23.003 21.977 19.180 17.990 18.107 24.773 167 261.926 122.970 28 Ratased 2. Tock and Other Deduction from Equity 30 Tefal Sharberry 1993 1994 1993 1698 161161 54619 SOT 019 954.999303510913 629.374 GOT 947 383.147 333.130 382.700 19.303 370319 267,467 284.387 321.03 $77407 407.308 86.4 617.385 61.788 ETH Income Statement ETH Balance Sheet Ethan Allen Interiors Inc. Income Statement (Industrial) in millions of U.S. Dollar, except per share items Sales Cost of Goods Sold (COGS) incl. D&A Gross Income SG&A Expense EBIT (Operating Income) Interest Expense Other Income - Net Unusual Expense - Net Pretax Income Income Taxes Net Income Jun '18 794.202 351.966 442.236 353.057 89.179 1.618 0.395 0.000 87.956) 31.319 56.637 Jun '17 754.600 343.437 411.163 345.229 65.934 5.957 1.206 4.500 56.683 19.541 37.142 Jun '16 746.659 340.163 406.496 336.860 69.636 7.540 0.306 0.000 62.402 19.471 42.931 Jun '15 729.083 330.734 398.3491 337.912 60.437 8.778 -1.485 0.000 50.174 17.696 32.478 Jun '14 729.373 339.085 390.288 340.676 49.612 9.020 0.562 -0.085 41.2391 -8.455 49.694 EPS (recurring) EPS (diluted) Diluted Shares Outstanding Total Shares Outstanding Dividends per Share Payout Ratio 2.00 2.00 28.32 27.75 0.62 31.00 1.38 1.27 29.18 28.41 0.50 39.37 1.47 1.47 29.28 28.93 0.40 27.21 1.11 1.11 29.24 28.91 0.36 32.43 1.71 1.71 29.11 28.84 0.30 17.54 EBITDA EBIT Depreciation & Amortization Expense 108.53 89.18 19.35 85.08 65.93 19.14 87.57 69.64 17.93 78.45 60.44 18.01 68.19 49.61 18.58 ETH Income Statement ETH Balance Sheet Ethan Allen Interiors Inc. Balance Sheet (Industrial) ures in millions of U.S. Dollar, except per share items Jun '18 Jun '17 Jun '16 Jun '15 Jun '14 Assets Cash Only Total Short Term Investments Short-Term Receivables Inventories Other Current Assets Total Current Assets Property, Plant & Equipment - Gross Accumulated Depreciation Net Property, Plant & Equipment Other Long-Term Assets Total Assets 52.659 0.000 9.467 162.323 23.755 248.204 598.264 324.649 273.615 55.590 577.409 76.182 2.198 12.547 151.916 27.831 270.674 594.912 317.877 277.035 59.599 607.308 109.176 18.153 12.426 146.275 19.599 305.629 601.709 313.553 288.156 60.649 654.434 72.601 15.529 12.277 137.256 22.907 260.570 594.385 302.713 291.672 65.043 617.285 79.721 9.005 14.919 155.739 23.408 282.792 587.368 291.673 295.695 66.301 644.788 Liabilities & Shareholders' Equity ST Debt & Curr. Portion LT Debt Accounts Payable Other Current Liabilities Total Current Liabilities Long-Term Debt Other Liabilities Total Liabilities Common Stock Par/Carry Value Additional Paid-In Capital/Capital Surplus Retained Earnings Treasury Stock and Other Deductions from Equity Total Shareholders' Equity Total Liabilities & Shareholders' Equity 3.001 15.437 104.909 123.347 38.837 23.023 185.207 0.489 374.972 646.315 629.574 392.202 577.409 3.341 18.946 118.682 140.969 74.227 21.577 236.773 0.489 370.914 607.079 607.947 370.535 607.308 0.501 0.480 24.320 22.995 111.226 109.464 136.047 132.939 130.411 130.809 20.509 19.180 286.967 282.928 0.486 0.486 365.733 363.938 584.395 553.083 583.147 583.150 367.467 334.357 654.434 617.285 0.250 27.315 123.512 151.077 154.250 17.593 322.920 0.485 361.165 542.918 582.700 321.868 644.788 O H the Allir les ac 3 All figure in million Dollar cooperare 4 Jun '18 Jun '17 Jan '18 Jun '13 Jun '14 3 S 794292 736.500 745.639 729083 729373 Cost of Good Sold COS) DRA 351 344 300153 39340 Greece SORA EDIT Operating Income) 19 65.834 0.439 10 new 1618 7340 11 OneNet 1206 -1485 993 0600 40 500 0 000 0334 4133 14 cm 39 1948 1947 1903.455 15 Setem 36.637 37.542 42.331 33.478 16 200 200 149 27.5 20 Duted Shame Outstandin 21 Total Shoes Outstandin 22 Die per See 23 Proute 2884 9 110 20 68.19 105.53 8918 1935 33.0 6593 26 ET 22 Deprecatione & Anti Expert 50.44 188 30 Source : Facetundentale All Beretta millions of US Dollar,escopper charms 18 17 16 15 14 As Cash 319 9.467 12941 12271 14919 162.323 191916 146 279 137236 193.79 10 Current Att 11 Toral Current 13 Acceder 14 SetProperty Plant Rult 15 Le Terms Total Assets 248.704 70693086 098 1936 1010 000 324649 11317 31393 300 TIJ 2016 273.619 277019 235.156 291.672 293.893 $77407 407.308 86.4 617.385 61.788 0.480 0.250 16.946 19 ST Debt Cut Porte Debt 20 Accueil Pryable | 2 Tealiris 23 Long Term Date 24 Ore Lab Company 193.347 140. 186.047 139.939 151077 38.37 14.227 10:411 130.309 154.280 23.003 21.977 19.180 17.990 18.107 24.773 167 261.926 122.970 28 Ratased 2. Tock and Other Deduction from Equity 30 Tefal Sharberry 1993 1994 1993 1698 161161 54619 SOT 019 954.999303510913 629.374 GOT 947 383.147 333.130 382.700 19.303 370319 267,467 284.387 321.03 $77407 407.308 86.4 617.385 61.788 ETH Income Statement ETH Balance Sheet Ethan Allen Interiors Inc. Income Statement (Industrial) in millions of U.S. Dollar, except per share items Sales Cost of Goods Sold (COGS) incl. D&A Gross Income SG&A Expense EBIT (Operating Income) Interest Expense Other Income - Net Unusual Expense - Net Pretax Income Income Taxes Net Income Jun '18 794.202 351.966 442.236 353.057 89.179 1.618 0.395 0.000 87.956) 31.319 56.637 Jun '17 754.600 343.437 411.163 345.229 65.934 5.957 1.206 4.500 56.683 19.541 37.142 Jun '16 746.659 340.163 406.496 336.860 69.636 7.540 0.306 0.000 62.402 19.471 42.931 Jun '15 729.083 330.734 398.3491 337.912 60.437 8.778 -1.485 0.000 50.174 17.696 32.478 Jun '14 729.373 339.085 390.288 340.676 49.612 9.020 0.562 -0.085 41.2391 -8.455 49.694 EPS (recurring) EPS (diluted) Diluted Shares Outstanding Total Shares Outstanding Dividends per Share Payout Ratio 2.00 2.00 28.32 27.75 0.62 31.00 1.38 1.27 29.18 28.41 0.50 39.37 1.47 1.47 29.28 28.93 0.40 27.21 1.11 1.11 29.24 28.91 0.36 32.43 1.71 1.71 29.11 28.84 0.30 17.54 EBITDA EBIT Depreciation & Amortization Expense 108.53 89.18 19.35 85.08 65.93 19.14 87.57 69.64 17.93 78.45 60.44 18.01 68.19 49.61 18.58 ETH Income Statement ETH Balance Sheet Ethan Allen Interiors Inc. Balance Sheet (Industrial) ures in millions of U.S. Dollar, except per share items Jun '18 Jun '17 Jun '16 Jun '15 Jun '14 Assets Cash Only Total Short Term Investments Short-Term Receivables Inventories Other Current Assets Total Current Assets Property, Plant & Equipment - Gross Accumulated Depreciation Net Property, Plant & Equipment Other Long-Term Assets Total Assets 52.659 0.000 9.467 162.323 23.755 248.204 598.264 324.649 273.615 55.590 577.409 76.182 2.198 12.547 151.916 27.831 270.674 594.912 317.877 277.035 59.599 607.308 109.176 18.153 12.426 146.275 19.599 305.629 601.709 313.553 288.156 60.649 654.434 72.601 15.529 12.277 137.256 22.907 260.570 594.385 302.713 291.672 65.043 617.285 79.721 9.005 14.919 155.739 23.408 282.792 587.368 291.673 295.695 66.301 644.788 Liabilities & Shareholders' Equity ST Debt & Curr. Portion LT Debt Accounts Payable Other Current Liabilities Total Current Liabilities Long-Term Debt Other Liabilities Total Liabilities Common Stock Par/Carry Value Additional Paid-In Capital/Capital Surplus Retained Earnings Treasury Stock and Other Deductions from Equity Total Shareholders' Equity Total Liabilities & Shareholders' Equity 3.001 15.437 104.909 123.347 38.837 23.023 185.207 0.489 374.972 646.315 629.574 392.202 577.409 3.341 18.946 118.682 140.969 74.227 21.577 236.773 0.489 370.914 607.079 607.947 370.535 607.308 0.501 0.480 24.320 22.995 111.226 109.464 136.047 132.939 130.411 130.809 20.509 19.180 286.967 282.928 0.486 0.486 365.733 363.938 584.395 553.083 583.147 583.150 367.467 334.357 654.434 617.285 0.250 27.315 123.512 151.077 154.250 17.593 322.920 0.485 361.165 542.918 582.700 321.868 644.788