Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need line of credit, total current liabilities and retained earnings please ork Suppose that in 2020 sales increase to $4.8 million and that 2020

image text in transcribed

I need line of credit, total current liabilities and retained earnings please

image text in transcribed
ork Suppose that in 2020 sales increase to $4.8 million and that 2020 dividends will increase to $156,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2019. The long-term bonds have an interest rate of 13%. New financing will be with a line of credit. Assume it will b added at the end of the year. Cash does not earn any interest income. Enter your answers as positive values. Do not round intermediate calculations. Round your answers to the nearest dollar. Garlington Technologies Inc. Pro Forma Income Statement December 31, 2020 Sales 4800000 Operating costs 3840000 EBIT 960000 Interest 130000 Pre-tax earnings 830000 Taxes (25%) 207500 Net income 622500 Dividends: 156000 Addition to RE: 466500

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance Turning Money into Wealth

Authors: Arthur J. Keown

8th edition

134730364, 978-0134730363

More Books

Students also viewed these Finance questions

Question

Use this data set: 8, 9, 5, 4, 7, and 8. Find the following: N

Answered: 1 week ago

Question

What is the book value of a bond payable? LO1.

Answered: 1 week ago