revenue in misty' income for 2015,16,17 is

1122, 1148, 1564 Respectively.

Purchases Freight in Labour Salaries Ulries Comm & website Travelling Advertising & Promotion Depreciation/amortization Miso charges Interest Expense Inventories Prepaid expenses Cash Renovations More Equipment Trade and other payables Long-term Debt Curent Portion LTD Shareholder Loan Share capital Retained earnings Dividends Income tax rate SMIETINUING Misty is going to renovate so she can have more stylists. Depreciation on this will be 2% for the first year Misty is going to renovate so she can have more stylists. Depreciation on this will be 2% for the first year $ 40% increase 62 year end balance same as last year 55% $ 45 increase going to add another manager 2% increase same amount as previous 9% increase 4% declining balance 40% increase 7% of 2010 year end balance of LTD 5 increase 1 increase unknown $95.00 2% $29.00 2% $25.00 projected balance. projected balance $6.00 not included in LTD $35.00 no change to be calculated 75% of EAT 2017, 2018 18% Revenue Cost of sales Gross profit Operating Expenses Purchases Freight in Labour Total cost of sales Salaries Utilities, Comm, & website Travelling Advertising & Promotion Depreciation/amortization Miso charges, Total Operating Expenses Operating Profit (EBIT) Less: Interest Expense Earnings Before Taxes (EB Less Income tax expense Profit for the year (EAT) Dividends Change in Retained Earnings 2015 www 69 30 600 699 423 138 44 12 7 11 20 252 171 14 157 31 125 0 125 6% 3% 53% 62% 38% 2016 1/% 14% 11% ***** 2885 295FF 630 731 417 12% 4% 1% 1% 1% 2% 22% 259 15% 158 14 145 29 116 87 29 6% 3% 55% 64% 36% 13% 4% 1x 1% 1% 1% 23% 14% 1%/ 13% 10% 2017 75 44 860 979 63% 585 37% 158 10% 55: 4% 16: 10: 1% 10; 1% 1% 291 19% 294 19% 13: 1% 281 18% 56 4% 225 14% 2018 IN 10 MARKS Actual mark add depreciation for declining balance of existing long term assets plus depreciation of new long term assets, but use half year rule for new assets include both the current portions and the long term portions of the debt to calculate the interest -168 Current assets Total current assets Long-term assets Total Long-term assets (net) Total assets Liabilities Current liabilities Total current liabilities Shareholder loan Term Loan Total Long Term Liabilities Total liabilities Total owners' equity Total equity and liabilities Inventories $ 104 3 30 137 256 30 (11) 275 $ 412 6 10 16 50 147 197 213 100 99 199 412 Prepaid expenses Cash Land and Building Equipment Less: Accumulated dep/amort Current Portion of LTD Trade and other payables S Share capital Retained earnings S 25% $ 123 - 1% 4 7% 43 33% 170 62% 256 7% 30 -3% (22) 67% 266 100% $ 436 1% 7 2% S 15 4% 22 12% 45 36% 141 186 52% 208 24% 100 24% 128 48% 228 100% S 436 28% $ 151 32% 1% 4 1% 10% 70 15% 39% 225 47% 59% 256 53% 7% 30 6% -5% (32); -7% 61% 254 53% 100% $479 100%. 2% 8 2% 3% S 20 4% 5% 28 6% 10% 33 7% 32% 134 28% 167 35% 48% 195 41% 23% 100 21% 29% 184 38% 52% 284 59% 100% $ 479 100% Misty's Hair Salon Current Ratio Quick Ratio Gross Margin Profit Margin Debt to Equity Return on Assets Return on Equity Interest Coverage Debt Coverage B 3 D Current Assets Current Liabilities Current Assets-Inventory Current Liabilities Net Sales-COS Net Sales Net Profit Net Sales Total Debt Shareholder's Equity Net Profit Total Assets Net Profit Shareholder's Equity EBIT Interest EBIT+Curr Ltd+Leases Interest + Current Ltd + Leases 2017 2018 Using the common size statements and the ratios, discuss whether the renovations are a good idea. Misty likes to have a minimum of $75 cash on hand in the company. How can she make that happen? Purchases Freight in Labour Salaries Ulries Comm & website Travelling Advertising & Promotion Depreciation/amortization Miso charges Interest Expense Inventories Prepaid expenses Cash Renovations More Equipment Trade and other payables Long-term Debt Curent Portion LTD Shareholder Loan Share capital Retained earnings Dividends Income tax rate SMIETINUING Misty is going to renovate so she can have more stylists. Depreciation on this will be 2% for the first year Misty is going to renovate so she can have more stylists. Depreciation on this will be 2% for the first year $ 40% increase 62 year end balance same as last year 55% $ 45 increase going to add another manager 2% increase same amount as previous 9% increase 4% declining balance 40% increase 7% of 2010 year end balance of LTD 5 increase 1 increase unknown $95.00 2% $29.00 2% $25.00 projected balance. projected balance $6.00 not included in LTD $35.00 no change to be calculated 75% of EAT 2017, 2018 18% Revenue Cost of sales Gross profit Operating Expenses Purchases Freight in Labour Total cost of sales Salaries Utilities, Comm, & website Travelling Advertising & Promotion Depreciation/amortization Miso charges, Total Operating Expenses Operating Profit (EBIT) Less: Interest Expense Earnings Before Taxes (EB Less Income tax expense Profit for the year (EAT) Dividends Change in Retained Earnings 2015 www 69 30 600 699 423 138 44 12 7 11 20 252 171 14 157 31 125 0 125 6% 3% 53% 62% 38% 2016 1/% 14% 11% ***** 2885 295FF 630 731 417 12% 4% 1% 1% 1% 2% 22% 259 15% 158 14 145 29 116 87 29 6% 3% 55% 64% 36% 13% 4% 1x 1% 1% 1% 23% 14% 1%/ 13% 10% 2017 75 44 860 979 63% 585 37% 158 10% 55: 4% 16: 10: 1% 10; 1% 1% 291 19% 294 19% 13: 1% 281 18% 56 4% 225 14% 2018 IN 10 MARKS Actual mark add depreciation for declining balance of existing long term assets plus depreciation of new long term assets, but use half year rule for new assets include both the current portions and the long term portions of the debt to calculate the interest -168 Current assets Total current assets Long-term assets Total Long-term assets (net) Total assets Liabilities Current liabilities Total current liabilities Shareholder loan Term Loan Total Long Term Liabilities Total liabilities Total owners' equity Total equity and liabilities Inventories $ 104 3 30 137 256 30 (11) 275 $ 412 6 10 16 50 147 197 213 100 99 199 412 Prepaid expenses Cash Land and Building Equipment Less: Accumulated dep/amort Current Portion of LTD Trade and other payables S Share capital Retained earnings S 25% $ 123 - 1% 4 7% 43 33% 170 62% 256 7% 30 -3% (22) 67% 266 100% $ 436 1% 7 2% S 15 4% 22 12% 45 36% 141 186 52% 208 24% 100 24% 128 48% 228 100% S 436 28% $ 151 32% 1% 4 1% 10% 70 15% 39% 225 47% 59% 256 53% 7% 30 6% -5% (32); -7% 61% 254 53% 100% $479 100%. 2% 8 2% 3% S 20 4% 5% 28 6% 10% 33 7% 32% 134 28% 167 35% 48% 195 41% 23% 100 21% 29% 184 38% 52% 284 59% 100% $ 479 100% Misty's Hair Salon Current Ratio Quick Ratio Gross Margin Profit Margin Debt to Equity Return on Assets Return on Equity Interest Coverage Debt Coverage B 3 D Current Assets Current Liabilities Current Assets-Inventory Current Liabilities Net Sales-COS Net Sales Net Profit Net Sales Total Debt Shareholder's Equity Net Profit Total Assets Net Profit Shareholder's Equity EBIT Interest EBIT+Curr Ltd+Leases Interest + Current Ltd + Leases 2017 2018 Using the common size statements and the ratios, discuss whether the renovations are a good idea. Misty likes to have a minimum of $75 cash on hand in the company. How can she make that happen