Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ch. 17 Homework (Due 10/14/2018 by 11:59 p.m.) 1. Using the data in the student spreadsheet file Ethan Allen Financials.xlsx forecast the June 30, 2019

image text in transcribed
image text in transcribed
Ch. 17 Homework (Due 10/14/2018 by 11:59 p.m.) 1. Using the data in the student spreadsheet file Ethan Allen Financials.xlsx forecast the June 30, 2019 income statement and balance sheet for Ethan Allen. Use the percent of sales method and the following assumptions: (1) sales in FY 2019 will be S797 .3359; (2) the tax rate will be 35%; (3) each item that changes with sales will be the five-year average percentage of sales; (4) net fixed assets will increase to $300; and (51 the common dividend will be $0.75 per share. Use your judgment on all other items. a. What is the discretionary financing needed in 2019? is this a surplus or deficit? b. Assume that the DFN will be absorbed by long-term debt and that the interest rate is 4% of LTD. Set up an iterative worksheet to eliminate it Ch. 17 Homework (Due 10/14/2018 by 11:59 p.m.) 1. Using the data in the student spreadsheet file Ethan Allen Financials.xlsx forecast the June 30, 2019 income statement and balance sheet for Ethan Allen. Use the percent of sales method and the following assumptions: (1) sales in FY 2019 will be S797 .3359; (2) the tax rate will be 35%; (3) each item that changes with sales will be the five-year average percentage of sales; (4) net fixed assets will increase to $300; and (51 the common dividend will be $0.75 per share. Use your judgment on all other items. a. What is the discretionary financing needed in 2019? is this a surplus or deficit? b. Assume that the DFN will be absorbed by long-term debt and that the interest rate is 4% of LTD. Set up an iterative worksheet to eliminate it

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

Fundamentals Of Contemporary Financial Management

Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao

2nd Edition

0324406363, 978-0324406368

More Books

Students also viewed these Finance questions

Question

What are HR ethics?

Answered: 1 week ago

Question

What does corporate sustainability mean?

Answered: 1 week ago