Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jim's Espresso expects sales to grow by 10.1% next year. Using the following statements and the percent of sales method, forecast: a. Costs b. Depreciation

image text in transcribed
image text in transcribed
Jim's Espresso expects sales to grow by 10.1% next year. Using the following statements and the percent of sales method, forecast: a. Costs b. Depreciation c. Net Income d. Cash e. Accounts receivable f. Inventory g. Property, plant, and equipment (Noto: Make sure to round all intermediate calculations to at least five decimal places.) The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. $15,070 Income Statement Sales Costs Except Depreciation EBITDA Depreciation EBIT $208,910 (99,600) $109,310 (5,960) $103,350 Balance Sheet Assets Cash and Equivalents Accounts Receivable Inventories Total Current Assets Property, Plant, and Equipment Total Assets 2,050 3,990 $21,110 9,980 Interest Expense (net) Pre-tax Income Income Tax Net Income (210) $103,140 (36,099) $67,041 $31,090 Liabilities and Equity Accounts Payable Debt Total Liabilities Stockholders' Equity Total Liabilities and Equity $1,480 3,920 $5,400 25,690 $31,090

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

Financial Management Principles And Practices

Authors: Timothy J. Gallagher

9th Edition

1954156103, 978-1954156104

More Books

Students also viewed these Finance questions