Question
Same Financial Statement for both questions! 24. Given the most recent financial statements for Activision Blizzard (FY2023). Sales for FY2024 are expected to grow by
Same Financial Statement for both questions!
24. Given the most recent financial statements for Activision Blizzard (FY2023). Sales for FY2024 are expected to grow by 5 percent. The following assumption must hold in the pro forma financial statements. The tax rate (percentage), the interest expense, and the dividend payout ratio (percentage) will remain constant. COGS, SGA, Depreciation and amortization, all current asset accounts, licensed content, NET PPE, and other assets increase spontaneously with sales. Calculate the pro forma value of accumulated retained earnings for FY24 if the firm operates at full capacity and no new debt or equity is issued.
25. Given the most recent financial statements for Activision Blizzard (FY2023). Sales for FY2024 are expected to grow by 5 percent. The following assumption must hold in the pro forma financial statements. The tax rate (percentage), the interest expense, and the dividend payout ratio (percentage) will remain constant. COGS, SGA, Depreciation and amortization, all current asset accounts, licensed content, NET PPE, and other assets increase spontaneously with sales. Calculate the external financing needed for the firm if the firm operates at full capacity and no new debt or equity is issued.
Income Statement | FY2023 | Balance Sheet | FY2023 | |
Sales | 7,528 | Cash | 7060 | |
COGS | 3643 | Marketable securities | 4932 | |
SGA | 2109 | Accounts Rec. | 1204 | |
Depreciation and Amort | 106 | Inventories | 640 | |
EBIT | 1,670 | Other Current Assets | 633 | |
Interest Expense | 74 | Total Current Assets | 14469 | |
EBT | 1,596 | Licensed content | 641 | |
Taxes | 231 | Net PPE | 193 | |
Net income | 1,365 | Other assets | 12080 | |
Retained Earn | 998 | Total Assets | 27383 | |
Dividends | 367 | |||
Accounts Payable | 324 | |||
Price per share | $80.32 | Deferred revenue | 2088 | |
Share Outstanding | 786 | Other Current Liabilities | 1143 | |
Total Current Liabilities | 3555 | |||
Long-term debt | 4585 | |||
Total Liabilities | 8140 | |||
Common stock | 6072 | |||
Retained Earnings | 13171 | |||
Total Equity | 19243 | |||
Total Liab. And Equity | 27383 |
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