Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a) Use the following ratios to prepare a projected income statement, balance sheet, and statement of cash flows for Year 3. b) Based on your

image text in transcribed
image text in transcribed
a) Use the following ratios to prepare a projected income statement, balance sheet, and statement of cash flows for Year 3. b) Based on your initial projections, how much external financing (long-term debt and/or stockholders' equity) will Saco World need to fund its growth at projected increases in sales? Comparative financial information of Saco World is shown below: \begin{tabular}{|c|c|c|} \hline Income Statement & Yr. 2022 & Yr. 2021 \\ \hline Net Sales & $15,326 & $12,494 \\ \hline Cost of Goods & 12,267 & 10,101 \\ \hline \begin{tabular}{|l|} Gross Profit \\ \end{tabular} & 3,059 & 2,393 \\ \hline Selling, general and administrative expense & 2,251 & 1,728 \\ \hline Depreciation and amortization expense & 167 & 103 \\ \hline Income before tax & 641 & 562 \\ \hline Income tax expense & 245 & 215 \\ \hline Net income & S396 & S347 \\ \hline Outstanding Shares & 208 & 200 \\ \hline Balance Sheet & Yr. 2022 & Yr. 2021 \\ \hline Cash & $746 & $751 \\ \hline Receivables & 313 & 262 \\ \hline \begin{tabular}{|l|} Inventories \\ \end{tabular} & 1,767 & 1,184 \\ \hline Other current assets & 102 & 41 \\ \hline Total current assets & 2,928 & 2,238 \\ \hline Property, plant \& equipment & 1,987 & 1,093 \\ \hline Accumulated depreciation & 543 & 395 \\ \hline Net property, plant and equipment & 1,444 & 698 \\ \hline Other noncurrent assets & 466 & 59 \\ \hline Total assets & $4838 & $2995 \\ \hline Accounts payable \& accrued liabilities & 2,473 & 1,704 \\ \hline Short-term debt and current maturities of long-term debt & 114 & 16 \\ \hline Income tax liabilities & 127 & 65 \\ \hline \begin{tabular}{|l} Total current liabilities \\ \end{tabular} & 2,714 & 1,785 \\ \hline \begin{tabular}{|l|} Long-term liabilities \\ \end{tabular} & 122 & 100 \\ \hline \begin{tabular}{|l|} Long-term debt \\ \end{tabular} & 181 & 15 \\ \hline Total long-term liabilities & 303 & 115 \\ \hline Common stock & 20 & 20 \\ \hline Capital surplus & 576 & 247 \\ \hline Retained earnings & 1,225 & 828 \\ \hline Shareholders' equity & 1,821 & 1,095 \\ \hline Total liabilities and equity & S 4838 & $2995 \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quality Audits Are Fun Journal Notes Checklists Questions Observations Evidence Log

Authors: Just Visualize It, The Quality Guy

1st Edition

1726628981, 978-1726628983

More Books

Students also viewed these Accounting questions