Question
Using excel and showing all formulas. NO HANDWRITTEN RESPONSES. Specifically need assistance with Balance Sheet and the formulas utilized. ZEDO COMPANY - ADDITIONAL FINANCING NEEDED.
Using excel and showing all formulas. NO HANDWRITTEN RESPONSES. Specifically need assistance with Balance Sheet and the formulas utilized.
- ZEDO COMPANY - ADDITIONAL FINANCING NEEDED. Assume sales grow 40% in 2021 over 2020; the average collection period increases by 9 days in 2021 compared to 2020 (360 days in the year), inventory turnover based on sales decreases by 1 in 2021 compared to 2020, Zedo pays a constant percentage of Net Income as a dividend, and 2020 net fixed assets are operating at 90% of capacity.
INCOME STATEMENT | 2020 | 2021 |
Net Sales | $800 | |
Cost of Goods Sold | - 650 | |
EBIT | $150 | |
Interest Expense | -15 | |
EBT | $135 | |
Taxes @ 40% | -54 | |
Net Income | $81 | |
Dividends | $27 | |
Additions to Retained Earnings | 54 | |
BALANCE SHEET - ASSETS | ||
Cash | $50 | |
Accounts Receivable | 80 | |
Inventories | 100 | |
Total Current Assets | $230 | |
Net Fixed Assets | 370 | |
Total Assets | $600 | |
LIABILITIES AND EQUITY | ||
Accounts Payable | $60 | |
Notes Payable | 20 | |
Accruals | 20 | |
Total Current Liabilities | $100 | |
Long-term Debt | 100 | |
Common Stock | 190 | |
Retained Earnings | 210 | |
Total Liabilities and Equities | $600 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started