For the following problems, use Exhibit A. For exhibit A, the amount of sales depends on
the production volume shown below. The dividend policy is to pay 25% in
dividends. Construct the Production volume table based on the instructions shown below.
a. What will be the depreciation for 2023?
b. What will be the cash and equivalents for 2020?
c. What will be the accounts payable for 2021?
d. Imagine that the corporation decides to use debt for any external financing, what
would be the amount of debt in 2020? (If no net new financing is needed, then
answer with a negative number
NOTE (D) IS 4 PLUG IN PLEASE FOR MARKET SHARE
EVERYTHING YOU NEED TO SOLVE IS UNCLUDED THIS IS SUCH BAD SERVICE OMG I HATE CHEGG
Integrated Financial Statements Exhibit A: Pro Forma Financial Statements 2019 2020 2021 2022 2023 2024 Income Statement Sales Revenue 45,000.00 2 less: Cost of Goods Sold $ 36,900.00 3 EBITDA 8,100.00 less: Depreciation Expense 4,500.00 5 EBIT 3,600.00 6 less: Interest and Other Expenses 800.00 7 PRE-TAX INCOME 2,800.00 8 less: Income Tax $ 1,120.00 9 NET INCOME $ 1,680.00 $ Production Volume (000s units) 1 Market Size 2 Market Share 3 Production Volume (Market Size X Market Share) 4 Average Sales Price 10,000.00 10.00% 1000.00 $45.00 $ 10,500.00 $ 11,025.00 [10+(D/2)+2]% [10+2*(D/2)+4]% $ 11,576.25$ 12,155.06 [10+3*(D/2)+6]% [10+4* (D/2)+8]% $ 12,762.82 [10+5*(D/2)+10]% $45.90 $46.82 $47.75 $48.71 $49.68 Integrated Financial Statements Exhibit A: Pro Forma Financial Statements 2019 2020 2021 2022 2023 2024 Balance Sheet 1 ASSETS Cash and Equivalents 7,200.00 3 Accounts Receivable 6,300.00 4 Inventory 7,650.00 5 CURRENT ASSETS 21,150.00 29,700.00 Property, Plant and Equipment 7 TOTAL ASSETS 50,850.00 8 LIABILITIES AND EQUITY 9 Accounts Payable 10,350.00 10 CURRENT LIABILITIES 10,350.00 11 Long-Term Debt 8,000.00 12 TOTAL LIABILITIES 18,350.00 13 STOCKSHOLDER'S EQUITY 32,500.00 14 Retained Earnings 15 TOTAL EQUITY 32,500.00 16 TOTAL LIABILITIES AND EQUITY 50,850.00 Integrated Financial Statements Exhibit A: Pro Forma Financial Statements 2019 2020 2021 2022 2023 2024 Income Statement Sales Revenue 45,000.00 2 less: Cost of Goods Sold $ 36,900.00 3 EBITDA 8,100.00 less: Depreciation Expense 4,500.00 5 EBIT 3,600.00 6 less: Interest and Other Expenses 800.00 7 PRE-TAX INCOME 2,800.00 8 less: Income Tax $ 1,120.00 9 NET INCOME $ 1,680.00 $ Production Volume (000s units) 1 Market Size 2 Market Share 3 Production Volume (Market Size X Market Share) 4 Average Sales Price 10,000.00 10.00% 1000.00 $45.00 $ 10,500.00 $ 11,025.00 [10+(D/2)+2]% [10+2*(D/2)+4]% $ 11,576.25$ 12,155.06 [10+3*(D/2)+6]% [10+4* (D/2)+8]% $ 12,762.82 [10+5*(D/2)+10]% $45.90 $46.82 $47.75 $48.71 $49.68 Integrated Financial Statements Exhibit A: Pro Forma Financial Statements 2019 2020 2021 2022 2023 2024 Balance Sheet 1 ASSETS Cash and Equivalents 7,200.00 3 Accounts Receivable 6,300.00 4 Inventory 7,650.00 5 CURRENT ASSETS 21,150.00 29,700.00 Property, Plant and Equipment 7 TOTAL ASSETS 50,850.00 8 LIABILITIES AND EQUITY 9 Accounts Payable 10,350.00 10 CURRENT LIABILITIES 10,350.00 11 Long-Term Debt 8,000.00 12 TOTAL LIABILITIES 18,350.00 13 STOCKSHOLDER'S EQUITY 32,500.00 14 Retained Earnings 15 TOTAL EQUITY 32,500.00 16 TOTAL LIABILITIES AND EQUITY 50,850.00
