Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The most recent financial statements for Nuesca Holidays Inc. follow. Sales for 2018 are projected to grow by 25%. Interest expense will remain constant, the

image text in transcribed
image text in transcribed
image text in transcribed
The most recent financial statements for Nuesca Holidays 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 Nurse Holidaya Ine. 2017 Statement of Comprehensive Income Sales $750,000 Costa 505,000 Other expenses 21,000 Earnings before interest and taxen $140,000 Interest paid 17,000 Taxable income $127,000 Taxes (309) 38, 100 Net income $ 80, 900 Dividends $20, 320 Addition to retained earnings 68, 580 Beach Holidays Inc. Statement of Financial Position of December 31, 2017 Assets Liabilities and Owners' Equity Current assets Current liabilities Caab| $ 26,000 Accounts payable Accounts receivable 41,400 Notes payable Inventory 37,600 Total Total $255,000 Long-term dat Owners' equity Fixed assets Coron stock and pasd-in suxplus Net plant and equipment 5300, 400 Retained earnings Tocal Total asta $455,400 Total abilities and onerar equity $ 69, 700 17,700 S. 86.400 $133,000 $119.000 5236.900 $455,455 del Complete the pro forma statement of comprehensive income below. (Input all amounts as positive ve response.) Nuesca Holidays Inc. Pro Forma Statement of Comprehensive Income 25 Sales Growth Sales $ Costs Other expenses EBIT S Interest Taxable income $ Taxes (309) $ Net income 03 Dividends Add. tO RE Complete the proforma statement of financial position below Anet Current assets Cash Accounts receivable Inventory Total Nepodays Do Porn Statens ionokal taicion Liabilities and Oy Current 11 abilities Accounts payable C oces payable 5 Total 2 Long-term debt Owners' equity Common stock and paid-1 murplus 5 Retained coringa Total Total abilities and ownera equity 5 Fixed assets Net plant and equipiers Tocal assets Calculate the EFN for 25% growth rates ani

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

Auditing and Assurance Services

Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws

6th edition

978-1259197109, 77632281, 77862341, 1259197107, 9780077632281, 978-0077862343

More Books

Students also viewed these Accounting questions

Question

find all matrices A (a) A = 13 (b) A + A = 213

Answered: 1 week ago