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C. CALCULATION SECTION: Instructions: In this section, please show all calculations. Partial credit will be given wherever possible, when your calculations are shown and they

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C. CALCULATION SECTION: Instructions: In this section, please show all calculations. Partial credit will be given wherever possible, when your calculations are shown and they are completed correctly. 32.36. Premium Foods 2019 income statement is shown on the attachment. Notes Payable of $2,500 (amount in thousands) appears on Premium Foods" 2019 balance sheet. Premium Foods' management has made the following projections and assumptions for 2020: 1) 2020 sales are projected to increase by 10% over their 2019 level. 2) In 2020, the company plans to pay out 50 percent of its "Net Income" as dividends; the other 50 percent of "Net Income" will be additions to Retained Earnings," as in 2019. 3) An interest rate of 5 percent applies in 2020 to the debt balance ("Notes Payable" at the beginning of the year) 4) An income tax rate of 22% applies in 2020, as in 2019. Construct the projected 2020 income statement using the "Forecasted Financial Statements" (FFS) method. Assume the firm operated at full capacity in 2019. Please enter the numerical values for the 2020 projected income statement, along with your assumptions, on the Excel template available at the "Content" link at our course Web site under the "Exam One" heading. C. CALCULATION SECTION: Instructions: In this section, please show all calculations. Partial credit will be given wherever possible, when your calculations are shown and they are completed correctly. 32.36. Premium Foods 2019 income statement is shown on the attachment. Notes Payable of $2,500 (amount in thousands) appears on Premium Foods" 2019 balance sheet. Premium Foods' management has made the following projections and assumptions for 2020: 1) 2020 sales are projected to increase by 10% over their 2019 level. 2) In 2020, the company plans to pay out 50 percent of its "Net Income" as dividends; the other 50 percent of "Net Income" will be additions to Retained Earnings," as in 2019. 3) An interest rate of 5 percent applies in 2020 to the debt balance ("Notes Payable" at the beginning of the year) 4) An income tax rate of 22% applies in 2020, as in 2019. Construct the projected 2020 income statement using the "Forecasted Financial Statements" (FFS) method. Assume the firm operated at full capacity in 2019. Please enter the numerical values for the 2020 projected income statement, along with your assumptions, on the Excel template available at the "Content" link at our course Web site under the "Exam One" heading

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