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What is sensitivity of financial data analysis? Using this chart answer thes following question. Explain your observations on: o How did adjusting growth rate of
What is sensitivity of financial data analysis?
Using this chart answer thes following question.
Explain your observations on: o How did adjusting growth rate of sale and cost of good sold affect the income statement and Requirements: balance sheet? o What is External Funding Required and how was it affected by adjusting sales projections and cost of goods sold?
Facts and Assumptions | |||
Year | 2021 | 2022 | 2023 |
Net sales | $65,276 | $91,386 | |
Growth rate in sales | 40% | 50% | |
Cost of goods sold | 89% | 86% | |
Gen., sell,, and admin. Expenses | 12% | 11% | |
Long-term debt | $540 | $540 | $540 |
Current portion long-term debt | $59 | $59 | $59 |
Interest rate | 10% | 10% | |
Tax rate | 45% | 45% | |
Dividend/earnings after tax | 50% | 50% | |
Current assets | 29% | 29% | |
Net fixed assets | $61 | $61 | $61 |
Current liabilities | 14.5% | 14.4% | |
Owners' equity | $1,936 | ||
INCOME STATEMENT | |||
Year | 2021 | 2022 | 2023 |
Net sales | $91,386 | $91,386 | |
Cost of good sold | 81,334 | 78,592 | |
Gross profit | 10,053 | 12,794 | |
Gen., sell,, and admin. exp. | 10,966 | 10,053 | |
Interest expense | 60 | 1,170 | |
Earnings before tax | (974) | 1,571 | |
Tax | (438) | 707 | |
Earnings after tax | (536) | 864 | |
Dividends paid | (268) | 432 | |
Additions to retained earnings | (268) | 432 | |
BALANCE SHEET | |||
Current assets | $26,502 | $26,502 | |
Net fixed assets | 61 | 61 | |
Total assets | 26,563 | 26,563 | |
Current liabilities | 13,251 | 13,160 | |
Long-term debt | 540 | 540 | |
Equity | 1,668 | 432 | |
Total liabilities and shareholders' equity | 15,459 | 14,132 | |
EXTERNAL FUNDING REQUIRED | $11,103 | $12,431 |
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