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The most recent financial statements for Nuesca Holidays Inc. follow. Sales for 2018 are projected to grow by 20%. Interest expense will remain constant; the
The most recent financial statements for Nuesca Holidays Inc. follow. Sales for 2018 are projected to grow by 20%. 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. Nuesca Holidays Inc. 2017 Statement of Comprehensive Income Sales $756,000 Costs 591,000 Other expenses 12,000 Earnings before interest and taxes $153,000 Interest paid 14,000 Taxable income $ 139,000 Taxes (30%) 41,700 Net income $ 97,300 Dividends $33,360 Addition to retained earnings 63,940 Assets Current assets Cash Accounts receivable Inventory Total Nuesca Holidays Inc. Statement of Financial Position as of December 31, 2017 Liabilities and Owners' Equity Current liabilities $ 26,600 Accounts payable 42,000 Notes payable 88,200 Total $156,800 Long-term debt Owners' equity Common stock and paid-in surplus $280,000 Retained earnings Total $436,800 Total liabilities and owners' equity $ 69,300 18,300 $ 87,600 $139,000 Fixed assets Net plant and equipment $125,000 85,200 $ 210,200 $436,800 Total assets Complete the pro forma statement of comprehensive income below. (Input all amounts as positive values. Omit $ sign in your response.) Nuesca Holidays Inc. Pro Forma Statement of Comprehensive Income 20 % Sales Growth Sales $ Costs Other expenses EBIT $ Interest Taxable income $ Taxes (30%) Net income Dividends Add. to RE $ $ $ $ Complete the pro forma statement of comprehensive income below. (Input all amounts as positive values. Omit $ sign in your response.) Nuesca Holidays Inc. Pro Forma Statement of Comprehensive Income 20 % Sales Growth Sales $ Costs Other expenses EBIT Interest Taxable income $ Taxes (30%) Net income $ $ $ $ Dividends Add. to RE $ $ $ $ Complete the pro forma statement of financial position below. Nuesca Holidays 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 $ $ $ $ th $ $ $ ta $ Calculate the EFN for 20% growth rates. 20% EFN $
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