Problem 4-(Part 1, 23 and 4) Consider Greenpoint, Inc. using the table listed below. Assume that the company plans to maintain its dividend payments at the same level in 2017 as in 2016. Also assume that all of the additional financing needed is in the form of short terms notes payable. Determine and provide the amount of the following: (Part 1)-Fill in the blank calls on this page below in yellow highlights) (Part 2) Additional Financing needed-(AFN) (Part 3 and Part 4) Also provide proforma financial statements: (Part 3) balance sheet, and (Part 4) income statement for 2017 under the following conditions: (PART 1) Increase in Sales: $4,500,000 - Given Increase in Expenses: $4,275,000 - Forecasted FINANCIAL STATEMENTS COMMENTS (ACTUAL) December 31 2016 (PRO-FORMA December 31 2017 BALANCE SHEET Assets Cash Accounts Receivable Inventories Total Current Assets Fixed Assets-Net TOTAL ASSETS 30% Increase consumption 30% Increase assumption) 30% Increase-(assumption) $ 500,000 2,000,000 4,000,000 $ 6,500,000 $ 1,000,000 $ 7,500,000 $ 650,000 2,600.000 5,200,000 $ 8,450,000 1.300.000 $ 9,750,000 30% Increase assumption Liabilities and Equity Accounts Payable Notes Payable-(current) Total Current Llabilities $ 1,500,000 $ 1.000.000 $ $ 2.500,000 $ 1.950,000 30% Increase-assumption 2 $1,000,000 AFN-next page 2 No Change Long Term Debt Stockholder's Equity $ 500.000 $ 500,000 $ 4,500,000 $5,225.000 2 Total Liabilities and Equity $ 7,500,000 $ 2016 2017 30% Increase-(assumption Forecasted INCOME STATEMENT Sales Revenue Less Expenses-includes interest & taxes Earnings after taxes (EAT) Dividends paid Retained Earnings $ 15,000,000 14,250,000 $ 750,000 250,000 $ 500,000 $ 19,500,000 18.525,000 $ 975,000 250,000 $ ? *COMPLETE THE SECTIONS WHICH ARE HIGHLIGHTED IN YELLOW Problem 4-(Part 1, 2, 3 and 4) Consider Greenpoint, Inc. using the table listed below. Assume that the company plans to maintain its dividend payments at the same level in 2017 as in 2016. Also assume that all of the additional financing needed is in the form of short terms notes payable. Determine and provide the amount of the following: (Part 1)-Fill in the blank cells on PREVIOUS PAGE-(in yellow highlights) (Part 2) Additional Financing needed-(AFN) (Part 3 and Part 4) Also provide proforma financial statements on the following pages: (Part 3) balance sheet, and (Part 4) income statement for 2017 under the following conditions: Increase in Sales: $ 4,500,000 - Given Increase in Expenses: $4 275,000 - Forecasted (PART 2). Additional Financing Needed = [(A/S)(AS) - (CL/S/(AS) - [EAT-D] = (Show calculation below) A = $9,750,000 S = $19,500,000 CL = $1,950,000 AS = $4,500,000 D = $250,000 EAT = $19,500,000 - 18,525,000 = $975,000 Problem 4-(Part 3)-Balance Sheet-Fill in the blanks below-(in yellow highlights) Balance Sheet as of December 31, 2017 Assets Liabilities Cash $ 650,000 Accounts payable $1,950,000 Accounts Receivable 2,600,000 Notes payable Inventories 5.200.000 Total Cur. Liabilities 4,025,000 Total Cur. Assets 8,450,000 Long-term Debt 500,000 Fixed assets, net 1.300.000 Stockholders' equity Total assets $9,750,000 Total liabilities and equity equity 59,750,000 Problem 4-(Part 4)-Income Statement Fill in the blanks below-in yellow highlights) Income Statement for the Year Ending December 31, 2017 Sales.... $19,500,000 Deduct Expenses, including interest and taxes..... EAT-Earnings After Taxes...... .975,000 Deduct Dividends.. (250,000 Addition to retained earnings..... S 725.000
