Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Income Statement, 2016 Sales Costs except Depr. EBITDA Depreciation EBIT Interest Expense (net) Pretax Income Income Tax Net Income 5,000,000 -3,500,000 1,500,000 -10,900 1,489,100 -100,500

image text in transcribed
Income Statement, 2016 Sales Costs except Depr. EBITDA Depreciation EBIT Interest Expense (net) Pretax Income Income Tax Net Income 5,000,000 -3,500,000 1,500,000 -10,900 1,489,100 -100,500 1,388,600 -486,010 902,590 Balance Sheet, 2016 Assets Cash and Equivalents Accounts Receivable Inventories Total Current Assets Property Plant & Equipment Total Assets Liabilities & Equity Accounts Payable Debt Total Liabilities Stockholders' Equity Total Liabilities and Equity 1,096,000 960,000 90,000 2,146,000 2,190,000 4,336,000 900,000 950,000 1,850,000 2,486,000 4,336,000 Sales in 2017 are expected to grow at a rate of 9% with respect to the values of 2016. Assume the company pays out 55% of its net income. 1. Use the percent sales method to forecast the value of next year's stockholder's equity for firm X 2. Use the percent sales to estimate the firm's net new financing for firm X. Use the following information on Company Y and perform pro-forma financial modeling using a Income Statement, 2016 Sales Costs except Depr. EBITDA Depreciation EBIT Interest Expense (net) Pretax Income Income Tax Net Income 5,000,000 -3,500,000 1,500,000 -10,900 1,489,100 -100,500 1,388,600 -486,010 902,590 Balance Sheet, 2016 Assets Cash and Equivalents Accounts Receivable Inventories Total Current Assets Property Plant & Equipment Total Assets Liabilities & Equity Accounts Payable Debt Total Liabilities Stockholders' Equity Total Liabilities and Equity 1,096,000 960,000 90,000 2,146,000 2,190,000 4,336,000 900,000 950,000 1,850,000 2,486,000 4,336,000 Sales in 2017 are expected to grow at a rate of 9% with respect to the values of 2016. Assume the company pays out 55% of its net income. 1. Use the percent sales method to forecast the value of next year's stockholder's equity for firm X 2. Use the percent sales to estimate the firm's net new financing for firm X. Use the following information on Company Y and perform pro-forma financial modeling using a

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

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

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

Microeconomics An Intuitive Approach with Calculus

Authors: Thomas Nechyba

1st edition

538453257, 978-0538453257

Students also viewed these Accounting questions