Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Forecast financial statements for Cadbury for Year 3 using the assumptions below, and answer the questions that follow. You can also find the data in
Forecast financial statements for Cadbury for Year using the assumptions below, and answer the questions that follow. You can also find the data in the file "AGB HW template.xlsx Sales growth of The cost of debt is of last period's longterm debt. The tax rate is The depreciation rate is CAPEX is million. The following accounts are held constant: Intangible Assets and Common Stock. Longterm debt is the PLUG variable. No dividends. Cost of Goods SoldSales SG&ASales Current AssetsSales Current LiabilitiesSales Past financial statements for Cadbury are shown here: Cadbury Income Statement and Balance Sheet As of December Year & millions Year Revenue Cost of Goods Sold SG&A Depreciation Expense EBIT Interest expenses Earnings before taxes Income taxes Net Income ASSETS Year Year Total current assets Property, plant and equipment Intangible assets Total Assets LIABILITIES & STOCKHOLDERS' EQUITY Total current liabilities Longterm debt Total Liabilities Stockholders' Equity Common Stock Retained earnings Total Stockholders' Equity Total Liabilities & Stockholders' Equity From the forecasted financial statements, the additional funds neededAFN in Year aremillions. The AFN is the change in the plug account from Year to YearRound to the whole number. Using the equation approach, the AFN in Year are million. Round to the whole number. Hint: A refers to total current assets and PPE; L refers to total current liabilities. The maximum internal growth rate for Cadbury is percent. Round to two decimal places. Hint: use numbers from year The maximum sustainable growth rate for Cadbury is percent. Round to two decimal places. Hint: use numbers from year
Forecast financial statements for Cadbury for Year using the assumptions below, and answer the questions that follow. You can also find the data in the file "AGB HW template.xlsx
Sales growth of
The cost of debt is of last period's longterm debt.
The tax rate is
The depreciation rate is
CAPEX is million.
The following accounts are held constant: Intangible Assets and Common Stock.
Longterm debt is the PLUG variable.
No dividends.
Cost of Goods SoldSales
SG&ASales
Current AssetsSales
Current LiabilitiesSales
Past financial statements for Cadbury are shown here:
Cadbury Income Statement and Balance Sheet
As of December Year &
millions
Year
Revenue
Cost of Goods Sold
SG&A
Depreciation Expense
EBIT
Interest expenses
Earnings before taxes
Income taxes
Net Income
ASSETS
Year
Year
Total current assets
Property, plant and equipment
Intangible assets
Total Assets
LIABILITIES & STOCKHOLDERS' EQUITY
Total current liabilities
Longterm debt
Total Liabilities
Stockholders' Equity
Common Stock
Retained earnings
Total Stockholders' Equity
Total Liabilities & Stockholders' Equity
From the forecasted financial statements, the additional funds neededAFN in Year aremillions. The AFN is the change in the plug account from Year to YearRound to the whole number. Using the equation approach, the AFN in Year are million. Round to the whole number. Hint: A refers to total current assets and PPE; L refers to total current liabilities. The maximum internal growth rate for Cadbury is percent. Round to two decimal places. Hint: use numbers from year The maximum sustainable growth rate for Cadbury is percent. Round to two decimal places. Hint: use numbers from year
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started