debt & equity for Req B
Req C
The following tables contain financial statements for Dynastatics Corporation Although the company has not been growing. t now plans to expand and will increase net foed assets (le, assets net of depreciation by $200,000 per year for the next 4 years, and forecasts that the ratio of revenues to total assets will remain at 150 Annual depreciation is 20% of net fixed assets at the beginning of the year Fixed costs are expected to remain at $94 and variable costs at 70% of revenue. The company's policy is to pay out one-half of net income as dividends and to maintain a book debt ratio of 20% of total capital TNCOME STATEMENT, 2015 (Figures in thousands) Revenue $1,000 Fixed costs 94 Variable costs 1705 of revenue) 1,260 Depretation 260 Interest (68 of beginning-of-year debt) 10 Taxable inaone 285 TAX at 350) 94 Net income $14 Dividends Addition to retained gaming $.67 BALANCE SHEET. YAND (Figures in thousands 2019 Ant slec working capital Fixed asset Totalt Liabilities and shareholder ty Dat kautov 400 800 31.200 308 Che BALANCE SREET, YEAR-END (Figures in thousands 2019 Assets Networking capital Fixed assets Total assets Liabilities and shareholders' equity Debt Equity Total liabilities and shareholders' equity 100 BOO 62,200 $300 900 $1,200 Required: 01. Produce an income statement for 2020. Assume that net working capital will equal 50% of fixed assets 02. Produce a balance sheet for 2020 Assume that net working capital will equal 50% of feed assets. b. Now assume that the balancing item is debt and that no equity is to be issued. Prepare a completed pro forma balance sheet for 2020 C. Assume that the balancing item is debt and that no equity is to be issued, what is the projected debt ratio for 2020? Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Reg B Reac What is the projected debt ratio for 2020? (Round your answer to 3 decimal places) L. A Ilule URI RIS Veu du qury i utbucu, GIS UIE MUJELICU ROLIGLOTU ZUZU! Ch Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Req Rega Now assume that the balancing item is debt and that no equity is to be issued. Prepare a completed pro forma balance sheet for 2020. (Enter your answers in thousanda.) Balance Sheet Year End 2020 Assets Net working capital Fixed assets Total assets Liabilities & Shareholders' Equity Debt Equity Total liabilities & shareholders' equity 500 1,000 1,500 5 S 1,500 Required: 01. Produce an Income statement for 2020. Assume that net working capital will equal 50% of fixed assets 62. Produce a balance sheet for 2020. Assume that net working capital will equal 50% of fixed assets b. Now assume that the balancing item is debt and that no equity is to be issued. Prepare a completed pro forma balance sheet for 2020 C. Assume that the balancing item is debt and that no equity is to be issued, what is the projected debt ratio for 2020? Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Reg B Regc What is the projected debt ratio for 20207 (Round your answer to 3 decimal places.) Debt ratio
