INCOME STATEMENTS Sales Variable costs Fixed costs EBIT Interest EBT Taxes Net income Financial Planning and Forecasting 2011 2012E PART A Complete the Income Statement $ 2,000.00 (1+g) g= 25% 1,200.00 1,500.00 60% Variabl Costs Remain 60% of Sales 700.00 875.00 35% Fixed Cost Remain 35% of Sales $ 100.00 16.00 16.00 Interest Expense Remain the Same $ 84.00 33.60 40% Tax Rate stays Constant $ 50.40 same 40% Dividends (30%) Addition to retained earnings $15.12 $35.28 Dividend Payout Ratio Remains Constant OTHER INPUT DATA Sales growth rate Tax rate g 25% 40% 2011 2012E $ BALANCE SHEETS Assets Cash and equivalents Accounts receivable Inventory Total current assets Net fixed assets Total assets 20 $ 240 240 500 $ 500 1,000 $ 25 300 300 625 625 1,250 $ $ $ $ Liabilities and equity Accounts payable & accrued liabilities Notes payable Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity 100 $ 100 200 $ 100 500 200 1,000 $ 125 190 315 190 500 245 1,250 $