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Company A expects sales to grow by 6% next year. Using the percent of sales method and the data provided in the given tables, forecast
Company A expects sales to grow by 6% next year. Using the percent of sales method and the data provided in the given tables, forecast the following.
a. Costs
b. Depreciation
c. Net income
d. Cash
e. Accounts receivable
f. Inventory
g. Property, plant, and equipment
h. Accounts payable
(Note: Interest expense will not change with a change in sales. Tax rate is 26%.)
Income Statement ($ million) Net Sales Costs Except Depreciation EBITDA Depreciation and Amortization EBIT Interest Income (expense) 185.1 - 175.1 10 - 1.2 8.8 -7.7 Balance Sheet ($ million) Assets Cash Accounts Receivable Inventories Total Current Assets Net Property, Plant, and Equipment Total Assets 22.9 17.1 15.6 55.6 112.9 1.1 168.5 Pre-tax Income Taxes (26%) Net Income -0.3 0.8 Liabilities and Equity Accounts Payable Long-Term Debt Total Liabilities Total Stockholders' Equity Total Liabilities and Equity 33.3 112.7 146.0 22.5 168.5Step by Step Solution
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