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Noah's Ark Video Games expects sales to grow by 25% next year. Assume now that it pays out 70% of its net income. Using the

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Noah's Ark Video Games expects sales to grow by 25% next year. Assume now that it pays out 70% of its net income. Using the following statements and the percent of sales method, forecast the amount of net new financing needed: (note that negative net new financing is excess financing) Income Statement Year 0 Sales Costs Except Depreciation EBITDA Depreciation EBIT Interest Expense (net) Pretax Income Income Tax Net Income 320,000 (150,000) 170,000 (15,000) 155,000 (3,000) 152,000 (53,200) 98,800 Balance Sheet Assets Cash and Equivalents Accounts Receivable Inventories Total Current Assets Property, Plant and Equipment Total Assets Liabilities and Equity Accounts Payable Debt Total Liabilities Stockholders' Equity Total Liabilities and Equity Year 0 25,000 12,000 5,000 42,000 120,000 162,000 45,000 48,000 93,000 69,000 162,000 $1,747 O-$1,747 $1,625 O-$1,625 $99,997 -$99,997 $99,875 O-$99,875 Noah's Ark Video Games expects sales to grow by 25% next year. Assume now that it pays out 70% of its net income. Using the following statements and the percent of sales method, forecast the amount of net new financing needed: (note that negative net new financing is excess financing) Income Statement Year 0 Sales Costs Except Depreciation EBITDA Depreciation EBIT Interest Expense (net) Pretax Income Income Tax Net Income 320,000 (150,000) 170,000 (15,000) 155,000 (3,000) 152,000 (53,200) 98,800 Balance Sheet Assets Cash and Equivalents Accounts Receivable Inventories Total Current Assets Property, Plant and Equipment Total Assets Liabilities and Equity Accounts Payable Debt Total Liabilities Stockholders' Equity Total Liabilities and Equity Year 0 25,000 12,000 5,000 42,000 120,000 162,000 45,000 48,000 93,000 69,000 162,000 $1,747 O-$1,747 $1,625 O-$1,625 $99,997 -$99,997 $99,875 O-$99,875

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