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Please refer to Oscar's financial statements. Assume a constant debt-equity ratio, net profit margin and dividend payout ratio, and further assume all of Oscar's costs,
Please refer to Oscar's financial statements. Assume a constant debt-equity ratio, net profit margin and dividend payout ratio, and further assume all of Oscar's costs, assets and current liabilities vary directly with sales. What is the pro forma net fixed asset value for next year if sales are projected to increase by 7.5 percent?
$10,857.50
$10,931.38
$11,663.75
$15,587.50
$18,987.50
None of the above.
$ thousands) Oscar's Incredible Eaterv 2012 Income Statement Net sales Cost of goods sold Depreciation Earnings before interest and taxes Interest expense Earnings before tax 17,300 10,600 3.250 3.450 680 2,770 940 1,830 450 ?? Earnings after tax Dividends 2012 Balance Sheet Cash Accounts receivable Inventory Total current assets Net fixed assets Total assets 350 940 2,360 3.650 10,850 14,500 Accounts payable Long-term debt Common stock Retained earnings 1,920 3,500 7,500 1,580 Tota ab. & equity 14.500Step by Step Solution
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