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The most recent financial statements for Hopington Tours Inc. follow. Sales for 2016 are projected to grow by 25 percent. Interest expense will remain constant;

The most recent financial statements for Hopington Tours Inc. follow. Sales for 2016 are projected to grow by 25 percent. 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.

HOPINGTON TOURS INC. 2015 Statement of Comprehensive Income
Sales $ 746,000
Costs 581,000
Other expenses 17,000
Earnings before interest and taxes $ 148,000
Interest paid 14,000
Taxable income $ 134,000
Taxes (35%) 46,900
Net income $ 87,100
Dividends $ 21,440
Addition to retained earnings 65,660

HOPINGTON TOURS INC. Statement of Financial Position as of December 31, 2015
Assets Liabilities and Owners Equity
Current assets Current liabilities
Cash $ 25,600 Accounts payable $ 68,300
Accounts receivable 41,000 Notes payable 17,300
Inventory 87,200 Total $ 85,600
Total $ 153,800 Long-term debt $ 129,000
Owners equity
Fixed assets Common stock and paid-in surplus $ 143,000
Net plant and equipment $ 322,400 Retained earnings 118,600
Total $ 261,600
Total assets $ 476,200 Total liabilities and owners equity $ 476,200

Complete the pro forma statement of comprehensive income below. (Input all amounts as positive values.)

HOPINGTON TOURS INC. Pro Forma Statement of Comprehensive Income
25 % Sales Growth
Sales $
Costs
Other expenses
EBIT $
Interest
Taxable income $
Taxes (35%)
Net income $
Dividends $
Add. to RE

Complete the pro forma statement of financial position below.

HOPINGTON TOURS INC. Pro Forma Statement of Financial Position
Assets Liabilities and Owners Equity
Current assets Current liabilities
Cash $ Accounts payable $
Accounts receivable $ Notes payable $
Inventory $ Total $
Total $ Long-term debt $
Owners equity
Fixed assets Common stock and paid-in surplus $
Net plant and equipment $ Retained earnings $
Total $
Total assets $ Total liabilities and owners equity $

Calculate the EFN for 25 percent growth rates.

25%
EFN $

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