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The following tables contain financial statements for Dynastatics Corporation. Although the company has not been growing. it now plans to expand and will increase net

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The following tables contain financial statements for Dynastatics Corporation. Although the company has not been growing. it now plans to expand and will increase net fixed assets (i.e., assets net of depreciation) by $200,000 per year for the next 5 years, and it forecasts that the ratio of revenues to total assets will remain at 1.50. Annual depreciation is 10% of net fixed assets at the beginning of the year. Fixed costs are expected to remain at $84,000 and variable costs at 80% of revenue. The company's policy is to pay out twothirds of net income as dividends and to maintain a book debt ratio of 20% of total capital. Required: a1. Produce an income statement for 2023 . Assume that net working capital will equal 50% of fixed assets. a2. Produce a balance sheet for 2023. Assume that net working capital will equal 50% of fixed assets. b. Now assume that the balancing item is debt and that no equity is to be issued. Prepare a completed pro forma balance sheet for 2023 c. Assume that the balancing item is debt and that no equity is to be issued, what is the projected debt ratio for 2025 ? d. Suppose that the cost of equity is 10% and that at the end of 2025 Dynastatics shares are expected to sell at 12 times net income. What would be the value today of the firm's equity? Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Produce an income statement for 2023. Assume that net working capital will equal 50% of fixed assets. Note: Input all amounts as positive values. Enter your answers in thousands. Round intermediate caiculations and final answers to the nearest whole dollar amount. Complete this question by entering your answers in the tabs below. Produce a balance sheet for 2023. Assume that net working capital will equal 50% of fixed assets. Note: Enter your answers in thousands. Now assume that the balancing item is debt and that no equity is to be issued. Prepare a completed pro forma balance sheet for 2023. Note: Enter your answers in thousands. Round intermediate calculations and final answers to the nearest whole dollar amount. b. Now assume that the balancing item is debt and that no equity is to be issued. Prepare a completed pro torma balance sheet lor 2023 c. Assume that the balancing item is debt and that no equity is to be issued, what is the projected debt ratio for 2025 ? d. Suppose that the cost of equity is 10% and that at the end of 2025 Dynastatics shares are expected to sell at 12 times net income. What would be the value today of the firm's equity? Complete this question by entering your answers in the tabs below. Assume that the balancing item is debt and that no equity is to be issued, what is the projected debt ratio for 2025 ? Note: Do not round your intermediate calculations. Round your answer to 3 decimal places: b. Now assume that the balancing item is debt and that no equity is to be issued. Prepare a completed pro torma balance sheet tor 2023. c. Assume that the balancing item is debt and that no equity is to be issued, what is the projected debt ratio for 2025 ? d. Suppose that the cost of equity is 10% and that at the end of 2025 Dynastatics shares are expected to sell at 12 times net income What would be the value today of the firm's equity? Complete this question by entering your answers in the tabs below. Suppose that the cost of equity is 10% and that at the end of 2025 Dynastatics shares are expected to sell at 12 times net income. What would be the value today of the firm's equity? answers in thousands. The following tables contain financial statements for Dynastatics Corporation. Although the company has not been growing. it now plans to expand and will increase net fixed assets (i.e., assets net of depreciation) by $200,000 per year for the next 5 years, and it forecasts that the ratio of revenues to total assets will remain at 1.50. Annual depreciation is 10% of net fixed assets at the beginning of the year. Fixed costs are expected to remain at $84,000 and variable costs at 80% of revenue. The company's policy is to pay out twothirds of net income as dividends and to maintain a book debt ratio of 20% of total capital. Required: a1. Produce an income statement for 2023 . Assume that net working capital will equal 50% of fixed assets. a2. Produce a balance sheet for 2023. Assume that net working capital will equal 50% of fixed assets. b. Now assume that the balancing item is debt and that no equity is to be issued. Prepare a completed pro forma balance sheet for 2023 c. Assume that the balancing item is debt and that no equity is to be issued, what is the projected debt ratio for 2025 ? d. Suppose that the cost of equity is 10% and that at the end of 2025 Dynastatics shares are expected to sell at 12 times net income. What would be the value today of the firm's equity? Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Produce an income statement for 2023. Assume that net working capital will equal 50% of fixed assets. Note: Input all amounts as positive values. Enter your answers in thousands. Round intermediate caiculations and final answers to the nearest whole dollar amount. Complete this question by entering your answers in the tabs below. Produce a balance sheet for 2023. Assume that net working capital will equal 50% of fixed assets. Note: Enter your answers in thousands. Now assume that the balancing item is debt and that no equity is to be issued. Prepare a completed pro forma balance sheet for 2023. Note: Enter your answers in thousands. Round intermediate calculations and final answers to the nearest whole dollar amount. b. Now assume that the balancing item is debt and that no equity is to be issued. Prepare a completed pro torma balance sheet lor 2023 c. Assume that the balancing item is debt and that no equity is to be issued, what is the projected debt ratio for 2025 ? d. Suppose that the cost of equity is 10% and that at the end of 2025 Dynastatics shares are expected to sell at 12 times net income. What would be the value today of the firm's equity? Complete this question by entering your answers in the tabs below. Assume that the balancing item is debt and that no equity is to be issued, what is the projected debt ratio for 2025 ? Note: Do not round your intermediate calculations. Round your answer to 3 decimal places: b. Now assume that the balancing item is debt and that no equity is to be issued. Prepare a completed pro torma balance sheet tor 2023. c. Assume that the balancing item is debt and that no equity is to be issued, what is the projected debt ratio for 2025 ? d. Suppose that the cost of equity is 10% and that at the end of 2025 Dynastatics shares are expected to sell at 12 times net income What would be the value today of the firm's equity? Complete this question by entering your answers in the tabs below. Suppose that the cost of equity is 10% and that at the end of 2025 Dynastatics shares are expected to sell at 12 times net income. What would be the value today of the firm's equity? answers in thousands

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