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Problem 2 EAGLE OUTFITTERS PROJECTED INCOME STATEMENT 2011 2012 Sales $250,000 100.0% $275,000 10.0% COGS 140,000 56.0% 148,500 54.0% Gross Margin 110,000 44.0% 126,500 Expenses

Problem 2
EAGLE OUTFITTERS
PROJECTED INCOME STATEMENT
2011 2012
Sales $250,000 100.0% $275,000 10.0%
COGS 140,000 56.0% 148,500 54.0%
Gross Margin 110,000 44.0% 126,500
Expenses 52,000 20.8% 57,200 10.0%
EBIT 58,000 23.2% 69,300
Interest (12%) 9,642 3.9% - 12.0%
EBT 48,358 19.3% 69,300
Inc Tax (43%) 20,794 8.3% 29,799 43.0%
Net Income 27,564 11.0% 39,501
Dividends 9,875 25.0%
EAGLE OUTFITTERS
PROJECTED BALANCE SHEET
ASSETS LIABILITIES & EQUITY
2011 2012 2011 2012
Cash $20,000 9.0% Accounts Payable $60,000 150
A/R 70,000 76,389 3.6 Debt 110,000
Inventory 90,000 250
Common Stock 40,000
Fixed Assets 150,000 171,875 1.6 Retained Earnings 120,000
Total $330,000 Total $330,000

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