Question
Global Corp. expects sales to grow by 7 % next year. Using the percent of sales method and the data provided in the given tables,
Global Corp. expects sales to grow by 7 % next year. Using the percent of sales method and the data provided in the given tables, forecast: a. Costs except depreciation b. Depreciation c. Net income d. Cash e. Accounts receivable f. Inventory g. Property, plant, and equipment h. Accounts payable (Note: Interest expense will not change with a change in sales. Tax rate is 26%.)
Income Statement ($ million) |
| Balance Sheet ($ million) |
| ||
Net Sales | 185.4185.4 | Assets | |||
Costs Except Depreciation | negative 174.1174.1 | Cash | 23.723.7 | ||
EBITDA | 11.311.3 | Accounts Receivable | 18.418.4 | ||
Depreciation and Amortization | negative 1.31.3 | Inventories | 15.115.1 | ||
EBIT | 1010 | Total Current Assets | 57.257.2 | ||
Interest Income (expense) | negative 7.77.7 | Net Property, Plant, and Equipment | 112.9112.9 | ||
Pre-tax Income | 2.32.3 | Total Assets | 170.1170.1 | ||
Taxes (2626%) | negative 0.60.6 | ||||
Net Income | 1.71.7 | Liabilities and Equity | |||
Accounts Payable | 35.535.5 | ||||
Long-Term Debt | 113.4113.4 | ||||
Total Liabilities | 148.9148.9 | ||||
Total Stockholders' Equity | 21.221.2 | ||||
Total Liabilities and Equity | 170.1170.1 |
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