Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The most recent financial statements for Formatica Inc follow Sales for 2018 are projected to grow by 25% Interest expense will remain constant the tax

image text in transcribed

image text in transcribed

image text in transcribed

The most recent financial statements for Formatica Inc follow Sales for 2018 are projected to grow by 25% Interest expense will remain constant the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, and accounts payable increase spontaneously with sales. The firm is operating at full capacity and no new debt or equity is issued Formatica Inc. 2017 Statement of Comprehensive Income Sales 753,000 Costs 589,000 Other expenses 24,000 Earnings before interest and taxes S 141,000 Interest paid 10,000 Taxable income 131,000 Taxes (40%) 52,400 Net income 78,600 Dividends $ 31,440 Addition to retained earnings 47, 160 57:03 5 Assets Current assets Cash Accounts receivable Inventory Total Formatica Inc. Statement of Financial Position as of December 31, 2017 Liabilities and Owners' Equity Current liabilities $ 26,300 Accounts payable 41,700 Nates payable 87,900 Total $155,900 Long-term debt Oarer equity Common stock and paid in surplus $150,400 Retained earnings Total $306,200 Total liabilities and owners' equity $ 69,000 18,600 $ 87,000 $101,000 Fixed sets het pl and equipment $100, ebe 18,300 $118300 $305,300 Total assets Total assets $306,300 Total Total liabilities and caners' equity $118,300 $306,300 Complete the pro forma statement of comprehensive Income below. (Input all amounts as positive values. Omit $ sign in your response.) Formatica Inc. Pro Forma Statement of Comprehensive Income 25 Sales Growth Sales Costs Other expenses EBIT Interest Taxable income Taxes (10%) Net income Dividends Add to RE 3 $ VA Complete the pro forma statement of financial position below Assets Current assets Cash Accounts receivable Inventory Formatica Inc Pre Forma Statement of Financial Position clabilities and Owners' Equity Curroot abilities Accounts payable Mote hayable Total 5 Plex to 30 Next > Add. to RE Complete the pro forma statement of financial position below. Assets $ Current assets Cash Accounts receivablo Inventory Total $ $ Formatica Inc. Pro Forma Statement of Financial Position Liabilities and Owners' Equity Current liabilities Accounts payable $ Notes payable Total Long-tern debt Owners' equity Common stock and paid-in surplus Retained earnings Total Total liabilities and owners! equity 5 Fixed assets Het plant and equipment $ $ $ Total assets Calculate the EEN for 25% growth rates. DEN 258 $1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Information Systems Today Managing in the Digital World

Authors: Joseph Valacich, Christoph Schneider

6th edition

1292215976, 132971216, 9781292215976, 978-0132971218

More Books

Students also viewed these Accounting questions

Question

=+can GDP measure two things at once?

Answered: 1 week ago

Question

How would you define brand attitude?

Answered: 1 week ago