Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 |
-
$642
-
$646
-
$650
-
$654
-
$660
CAN YOU PLEASE EXPLAIN HOW THE PLUG ACCOUNT WORKS AS WELL? THANKS!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started