2015 2014 $945,000 Lan & Chen Technologies: Income Statements for Year Ending December 31 (Thousands of Dollars) Sales Operating costs excluding depreciation and amortization EBITDA Depreciation EBIT 812,700 $132,300 33,100 $99,200 10,470 $88,730 35,492 $53,238 $900,000 774,000 $126,000 31,500 $94,500 8,600 $85,900 34,360 $51,540 Interest Expense EBT Taxes (40%) Net income Common dividends Addition to retained earnings $43,300 $41,230 $10,310 $9.938 2015 Lan & Chen Technologies: December 31 Balance Sheets (Thousands of Dollars) Assets Cash Short-term investments Accounts Receivable Inventories Total current assets Net fixed assets $47,250 3,800 283,500 141,750 $476,300 330,750 $807,050 2014 $45,000 3,600 270,000 135,000 $453,600 315,000 $768,600 Total assets 2015 $47,250 3,800 283,500 141,750 $476,300 330.750 $807,050 2014 $45,000 3,600 270,000 135,000 $453,600 315,000 $768,600 Lan & Chen Technologies: December 31 Balance Sheets (Thousands of Dollars) Assets Cash Short-term investments Accounts Receivable Inventories Total current assets Net fixed assets Total assets Liabilities and equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained Earnings Total common equity Total liabilities and equity $94,500 47,250 26,262 $168,012 94,500 $262,512 444,600 99.938 $544,538 $807,050 $90,000 45,000 9.000 $144,000 90,000 $234,000 444,600 90,000 $534,600 $768,600 Problem 3) Using the given financial statements calculate AFN for the next year. Assume sales growth rate is 10%. Also, calculate Self-supporting growth rate of the firm. Hint See: Solution in Chapter 9 Lab Excel Fall 2020 "AFN Application Solution" 2015 2014 $945,000 Lan & Chen Technologies: Income Statements for Year Ending December 31 (Thousands of Dollars) Sales Operating costs excluding depreciation and amortization EBITDA Depreciation EBIT 812,700 $132,300 33,100 $99,200 10,470 $88,730 35,492 $53,238 $900,000 774,000 $126,000 31,500 $94,500 8,600 $85,900 34,360 $51,540 Interest Expense EBT Taxes (40%) Net income Common dividends Addition to retained earnings $43,300 $41,230 $10,310 $9.938 2015 Lan & Chen Technologies: December 31 Balance Sheets (Thousands of Dollars) Assets Cash Short-term investments Accounts Receivable Inventories Total current assets Net fixed assets $47,250 3,800 283,500 141,750 $476,300 330,750 $807,050 2014 $45,000 3,600 270,000 135,000 $453,600 315,000 $768,600 Total assets 2015 $47,250 3,800 283,500 141,750 $476,300 330.750 $807,050 2014 $45,000 3,600 270,000 135,000 $453,600 315,000 $768,600 Lan & Chen Technologies: December 31 Balance Sheets (Thousands of Dollars) Assets Cash Short-term investments Accounts Receivable Inventories Total current assets Net fixed assets Total assets Liabilities and equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained Earnings Total common equity Total liabilities and equity $94,500 47,250 26,262 $168,012 94,500 $262,512 444,600 99.938 $544,538 $807,050 $90,000 45,000 9.000 $144,000 90,000 $234,000 444,600 90,000 $534,600 $768,600 Problem 3) Using the given financial statements calculate AFN for the next year. Assume sales growth rate is 10%. Also, calculate Self-supporting growth rate of the firm. Hint See: Solution in Chapter 9 Lab Excel Fall 2020 "AFN Application Solution