Question
Percentage of Sales Models. Here are abbreviated financial statements for Planners Peanuts: Income statement 2019 Sales $2000 cost $1500 Net Income $500 Balance Sheet, year-end
Percentage of Sales Models. Here are abbreviated financial statements for Planners Peanuts:
| Income statement 2019 | |
| Sales | $2000 |
| cost | $1500 |
| Net Income | $500 |
| Balance Sheet, year-end | |||||
| 2018 | 2019 | 2018 | 2019 | ||
| Assets | $2500 | $3000 | Debt | $833 | $1000 |
| Equity | $1667 | $2000 | |||
| Total | $2500 | Total | $2500 | $3000 | |
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If sales increase by 20% in 2020 and the company uses a strict percentage of sales planning model (meaning that all items on the income and balance sheet also increase by 20%, what must be the balancing item?
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What will be the value of this balancing item?
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What is the maximum possible growth rate for Planners Peanuts if the payout ratio remains at 50%? 3a. What if no Debt or equity is to be issued?
3b. What if the firm maintains a fixed debt ratio, but issues no equity?
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Food Hygiene Auditing
Authors: N. Chesworth
1997th Edition
1461380545, 978-1461380542
