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this was the information that was given. we are suppose to be using this balance and income statement to answer the questions Mick's Place Assets
this was the information that was given. we are suppose to be using this balance and income statement to answer the questions
Mick's Place Assets 2004 2005 Liabilities & 2004 2005 Owner's Equity Current Assets Current Liabilities Cash 815 906 Accounts 983 1292 Payable Accounts 2405 2510 Receivable Notes Payable 720 840 4608 4906 Other 105 188 Inventory Total CA 7828 8322 Total CL 1808 2320 Fixed Assets Long term Debt 4817 4960 Net PPE 15164 19167 Owner's Equity Total Assets 22992 27489 Common 10000 10000 Stock Retained 6367 10209 Earnings Total OE 16367 20209 Total Liabilities 22992 27489 & OE Income Statement 2005 Sales 33500 Cost of Good Sold 18970 Depreciation 1980 EBIT 12550 Int 486 EBT 12064 Taxes 4222 NI 7842 005. Suppose Mick's is projecting a 20% increase in sales for the coming year, and that cost of goods sold and general/administrative expenses remain a constant percentage of sales. Also assume that the amount of depreciation and interest paid and the firm's tax rate (35%) remain unchanged. Create the Pro Forma Income Statement for 2005. Assume the firm's dividend payout is 50%. What will the firm pay out in dividends in 2005? 006. Assume all information given in part A. Also, assume all assets and current liabilities are proportional to sales but long-term debt and equity are not proportional to sales. If the firm's tax rate remains unchanged, the dividend payout is 50%, what is the external financing needed (EFN) for 2006? Create the Pro Forma Balance Sheet for 2005. 007. Given all the information in part A & B. If the firm is only operating at 82% of capacity, what are full capacity sales and what is the external financing needed (EFN) for 2005? 008. Suppose Mick's wishes to maintain a sustainable growth rate of 30% per year. Is this growth rate possible? What must the dividend payout ratio be to make this feasible Step by Step Solution
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