Jim's Espresso expects sales to grow by 9.9% next year. Jim's changes its payout ratio from 90% to 77% of net income next year. When the payout ratio was 90% there was excess financing in the amount of $3.186.Jim's developed the proforma financial statements given here to reflect the change in the payout ratio to 77% How will the net new inancing change? The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation effectively expensing capital expenditures). However, we will include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. Hint: Determine the difference in financing by subtracting the financing required at 90% ($). 186) from the financing required at 77% The fnancing required at 77% is (Round to the nearest dollar) Thus, the difference in financing will be $ (Round to the nearest dolar) Data Table Click on the icons located on the top-right corners of the datatables below to copy their contents into a spreadsheet Pro Forma Financial Statements Income Statement Sales Costs Except Depreciation EBITDA Depreciation $209 997 (108.900) $101 097 (6.704) $94.393 (506) $93.887 (32 860) Balance Sheet Assets Cash and Equivalents Accounts Receivable Inventories Total Current Assets Property, Plant, and Equipment Total Assets $16.408 2.253 4.363 $23.024 11.023 $34.047 Interest Expense (net) Pre-tax income Income Tax Net Income Liabilities and Equity Accounts Payable Debt Total Liabilities Stockholders' Equity Total Liabilities and Equity $1.670 4.050 $5720 $39 446 Done Jim's Espresso expects sales to grow by 9.9% next year. Jim's changes its payout ratio from 90% to 77% of net income next year. When the payout ratio was 90%, there was excess financing in the amount of $3,186. Jim's developed the pro forma financial statements given here to reflect the change in the payout ratio to 77%. How will the net new financing change? 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. Hint: Determine the difference in financing by subtracting the financing required at 90% ($3,186) from the financing required at 77% The financing required at 77% is $ (Round to the nearest dollar) Thus, the difference in financing will be $ (Round to the nearest dollar.) Click on the icons located on the top-right corners of the data tables below to copy their contents into a spreadsheet Pro Forma Financial Statements Income Statement Sales Costs Except Depreciation EBITDA Depreciation EBIT Interest Expense (net) Pre-tax Income Income Tax Net Income $209,997 (108,900) $101,097 (6,704) $94,393 (506) $93,887 (32,860) $61,027 Balance Sheet Assets Cash and Equivalents Accounts Receivable Inventories Total Current Assets Property, Plant, and Equipment Total Assets $16,408 2,253 4,363 $23,024 11,023 $34,047 Liabilities and Equity Accounts Payable Debt Total Liabilities Stockholders' Equity Total Liabilities and Equity $1,670 4,050 $5,720 $39,446 $45,166 Print Done