Click on the icons located on the top-right corners of the data tables below to copy their contents into a spreadsheet. Pro Forma Financial Statements Income Statement Sales Costs Except Depreciation EBITDA Depreciation EBIT Interest Expense (net) Pre-tax Income Income Tax Net Income Balance Sheet $213,298Assets (111,149) Cash and Equivalents $102,149 Accounts Receivable $16,457 2,162 4,379 $22,998 11,129 $34,127 (6,552)Inventories $95,597Total Current Assets (243) Property, Plant, and Equipment $95,354 Total Assets (23,839) $71,515 Liabilities and Equity $1,721 3,940 $5,661 $41,888 $47,549 Accounts Payable Debt Total Liabilities Stockholders' Equity Total Liabilities and Equity Jim's Espresso expects sales to grow by 10.3% next year. Jim's changes its payout ratio from 90% to 77% of net income next year when the payout ratio was 90%, there was excess financing in the amount of $4,126. Jim's developed the pro forma financial statements given here to reflect the change in the payout ratio to 77%. How will the net new financing change? The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. Hint: Determine the difference in financing by subtracting the financing required at 90% ($4,126) from the financing required at 77% The financing required at 77% is (Round to the nearest dollar) Click on the icons located on the top-right corners of the data tables below to copy their contents into a spreadsheet. Pro Forma Financial Statements Income Statement Sales Costs Except Depreciation EBITDA Depreciation EBIT Interest Expense (net) Pre-tax Income Income Tax Net Income Balance Sheet $213,298Assets (111,149) Cash and Equivalents $102,149 Accounts Receivable $16,457 2,162 4,379 $22,998 11,129 $34,127 (6,552)Inventories $95,597Total Current Assets (243) Property, Plant, and Equipment $95,354 Total Assets (23,839) $71,515 Liabilities and Equity $1,721 3,940 $5,661 $41,888 $47,549 Accounts Payable Debt Total Liabilities Stockholders' Equity Total Liabilities and Equity Jim's Espresso expects sales to grow by 10.3% next year. Jim's changes its payout ratio from 90% to 77% of net income next year when the payout ratio was 90%, there was excess financing in the amount of $4,126. Jim's developed the pro forma financial statements given here to reflect the change in the payout ratio to 77%. How will the net new financing change? The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. Hint: Determine the difference in financing by subtracting the financing required at 90% ($4,126) from the financing required at 77% The financing required at 77% is (Round to the nearest dollar)
