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Complete the financial statement forecast for St. Dilbert. Use long-term debt as the plug account. Assume that St. Dilbert will maintain its dividend payout rate

Complete the financial statement forecast for St. Dilbert. Use long-term debt as the plug account. Assume that St. Dilbert will maintain its dividend payout rate of 33.09% in year 2. What is long-term debt for year 2?

Financial Statements for St. Dilbert
Year 1 Ratios Year 2
Revenue 500 0.2 600.00
COGS & SGA 235 0.47 282.00
Depreciation 50 0.076923 69.20
EBIT 215 248.80
Interest 40 0.1067 48.00
Pre-Tax Earnings 175 200.80
Taxes 36 0.21 41.30
Net Income 139 159.50
Dividends 46 0.33094
Year 1 Year 2
Current Assets 400 0.80
Fixed Assets (Net) 600 300 830.80
Total Assets 1,000
Current Liabilities 0 0 0.00
Long-term debt 450
Common Shares 50 50.00
Retained Earnings 500
Owners equity 550
Liabilities and Owners Equity 1,000

  1. $642

  2. $646

  3. $650

  4. $654

  5. $660

CAN YOU PLEASE EXPLAIN HOW THE PLUG ACCOUNT WORKS AS WELL? THANKS!

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