Question
Use the following income statement and balance sheet for the current year for Jim's Espresso and assume that sales are expected to grow by 10.3%
Use the following income statement and balance sheet for the current year for Jim's Espresso and assume that sales are expected to grow by
10.3% for the next year and interest expense will remain constant.
Income Statement | ||
Sales | $196,940 | |
Costs Except Depreciation | (100,600) | |
EBITDA | $96,340 | |
Depreciation | (5,900) | |
EBIT | $90,440 | |
Interest Expense (net) | (500) | |
Pre-tax Income | $89,940 | |
Income Tax | (31,479) | |
Net Income | $58,461 |
Balance Sheet | |
Assets | |
Cash and Equivalents | $14,900 |
Accounts Receivable | 2,090 |
Inventories | 4,080 |
Total Current Assets | $21,070 |
Property, Plant, and Equipment | 9,980 |
Total Assets | $31,050 |
Liabilities and Equity | |
Accounts Payable | $1,430 |
Debt | 3,950 |
Total Liabilities | $5,380 |
Shareholders' Equity | 25,670 |
Total Liabilities and Equity | $31,050 |
Use the percent of sales method to complete parts a through g.
a. Forecast costs for Jim's Espresso.
The forecasted costs will be $
b. Forecast depreciation for Jim's Espresso. The forecasted depreciation will be $
c. Forecast cash for Jim's Espresso. The forecasted cash will be $
d. Forecast accounts receivable for Jim's Espresso. The forecasted accounts receivable will be $
e. Forecast inventory for Jim's Espresso. The forecasted inventory will be $
.(Round to the nearest dollar and enter all numbers as positive.)
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