hi, can someone help me to forecast the financial planning for 1998 using vertical analysis based on
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Question:
hi, can someone help me to forecast the financial planning for 1998 using vertical analysis based on the exhibits below.
How much total bank financing will the company need at the end of 1998, including both the short-term borrowing under the bank credit line and the outstanding amount of the term loan? (For convenience, assume that 1998 sales are $3,000,000)
Notes and input data | |
Sales growth | 13.21% |
Interest rate on all debt | 6.69% |
Fixed assets capacity utilization | 100% |
Fixed assets growth rate | 11.86% |
Percentage of distribution to shareholders: | 31.50% |
Exhibit 3 Be Our Guest, Inc. Income Statement | ||||
Years Ended December 31 | ||||
1994 | 1995 | 1996 | 1997 | |
Revenue: | ||||
Rental Income | $ 1,620,313 | $ 1,794,807 | $ 1,990,853 | $ 2,469,474 |
Delivery Income | $ 156,035 | $ 179,173 | $ 168,959 | $ 180,567 |
Total Revenue | $ 1,776,348 | $ 1,973,980 | $ 2,159,812 | $ 2,650,041 |
Cost of Revenue: | ||||
Salaries | $ 490,968 | $ 575,253 | $ 547,611 | $ 610,602 |
Other Cost of Revenue | $ 211,468 | $ 302,877 | $ 347,094 | $ 419,050 |
Depreciation | $ 116,119 | $ 127,906 | $ 128,299 | $ 148,707 |
Gross Profit | 957,793 | $ 967,944 | $ 1,136,808 | $ 1,471,682 |
Operating Expenses: | ||||
General and Administrative Salaries | $ 381,501 | $ 434,434 | $ 539,168 | $ 840,718 |
Other General and Admin. Expenses (a) | $ 116,119 | $ 127,906 | $ 128,299 | $ 148,707 |
Bad Debt Expense | $ 5,702 | $ 977 | $ 22,186 | $ 5,188 |
$ 789,626 | $ 820,274 | $ 982,037 | $ 1,346,290 | |
Earnings from Operations | $ 168,167 | $ 147,670 | $ 154,771 | $ 125,392 |
Interest, Net | $ (27,820) | $ (33,912) | $ (44,545) | $ (37,580) |
Net Earnings | $ 140,347 | $ 113,758 | $ 110,226 | $ 87,812 |
Distributions To Shareholders | $ (60,000) | $ (46,700) | $ (95,000) | $ (27,660) |
Earnings Retained | $ 80,347 | $ 67,058 | $ 15,226 | $ 60,152 |
(a) Other General and Administrative Expenses include depreciation of $3,692; $8,322; $14,025; | ||||
and $22,612 for the years 1994 through 1997 respectively. |
Posted Date: