CALCULATE THE FOLLOWINGS Output area: Full capacity sales Fixed assets/sales at full capacity Total fixed assets Dividend payout ratio Assuming no fixed assets are sold:
Output area: Full capacity sales Fixed assets/sales at full capacity Total fixed assets Dividend payout ratio Assuming no fixed assets are sold: Pro Forma Income Statement Sales Costs Other expenses EBIT Interest expense Taxable income Taxes Net income Dividends Add. To RE External financing Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Assets Total assets Liabilities and owners' equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings Total Total liabilities and owners' equity
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the values in the output area we must use the information provided in the input area Lets start with the first set of calculations 1 Full ...See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
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