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The Owl Corporation is planning for 2 0 x 2 . The firm expects to have the following financial results in 2 0 X 1
The Owl Corporation is planning for The firm expects to have the following financial results
in X$
Income Statement
Balance Sheet
Assets
Cash
Accts Rec
Inventory
Curr Assets
Fixed Assets
Gross
Accum Dep
Total Assets
Liabilities and Equity
Accts Pay
Accruals
Curr Liab
Capital
Debt
Equity
Total L&E
Management has made the following planning assumptions:
Income Statement
Revenue will grow by
The cost ratio will improve to of revenues.
Expenses will be held to of revenues.
Balance Sheet
The year end cash balance will be $ million.
The ACP will improve to days from the current
Inventory turnover will improve to from
Trade payables will continue to be paid in days.
New capital spending will be $
Newly purchased assets will be depreciated over years
using the straight line method taking a full year's
depreciation in the first year.
The company's payroll will be $ million at the end of
No dividends or new stock sales are planned.
The following facts are also available:
The firm pays interest on all of its debt.
The combined state and federal income tax rate is a flat
The only significant payables come from inventory purchases, and
product cost is purchased materials.
Existing assets will be depreciated by $ next year.
The only significant accrual is payroll. The last day of will
be one week after a payday.
Forecast Owl's income statement and balance sheet for X Round all calculations to the
nearest $ and use a day year.
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