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19-3. Please see attached. I need the answer and excel format. Thank you! Problem 19-3 Assuming that Ideko's market share will increase by 0.5% per

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19-3. Please see attached. I need the answer and excel format. Thank you!

image text in transcribed Problem 19-3 Assuming that Ideko's market share will increase by 0.5% per year, the required production are shown below: Sales Data Market size (000 units) Market share Production volume Growth/Year 5% 0.5% 2005 10,000 10.00% 1,000 2006 10,500 10.50% 1,103 Ideko's production plant will require an expansion in 2010 (when production volume will ex cost of this expansion will be $15.0 million. Assuming the financing of the expansion will b projected interest payments and the amount of the projected interest tax shields (assuming th 6.8% and the corporate tax rate is 35%) through 2010. Ideko's balance sheet for 2005 is sho Balance Sheet ($000) Assets Cash and Cash Equivalents Accounts Receivable Inventories Total Current Assets Property, Plant & Equipment Goodwill Total Assets Liabilities Accounts Payable Debt Total Liabilities Stockholders' Equity Total Liabilities & Stockholders' Equity Interest rate on loan Corporate tax rate Cost of the expansion ($000) Debt and Interest ($000) 6,164 18,493 6,165 30,822 49,500 72,332 152,654 4,654 100,000 104,654 48,000 152,654 6.80% 35% 15,000 2005 2006 Outstanding debt Interest on the term loan, 6.8% Interest tax shield Requirements 1. In cell E34, by using relative and absolute cell references, calculate the outstanding d pt.). Copy cell E34 and paste it onto cells F34:I34 (1 pt.). 2. In cell J34, by using cell references, calculate the outstanding debt for the year 2010 3. In cell E35, by using relative and absolute cell references, calculate the interest on the 2005 (1 pt.). Copy cell E35 and paste it onto cells F35:J35 (1 pt.). Note that the inte not be applied until the following year. 4. In cell E36, by using relative and absolute cell references, calculate the interest tax sh pt.). Copy cell E36 and paste it onto cells F36:J36 (1 pt.). he required production capacities for the following five years 2007 11,025 11.00% 1,213 2008 11,576 11.50% 1,331 2009 12,155 12.00% 1,459 2010 12,763 12.50% 1,595 duction volume will exceed the current level by 50%), and the of the expansion will be delayed accordingly, calculate the ax shields (assuming that the interest rate on the term loans is e sheet for 2005 is shown below: 2007 2008 2009 2010 ulate the outstanding debt for the year 2005 (1 debt for the year 2010 (1 pt.). ulate the interest on the term loan for the year pt.). Note that the interest on the new loan will ulate the interest tax shield for the year 2005 (1

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