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Multi-part Numerical Problems: Answer each part in the space provided. Show your work (step- by-step or calculator inputs) to receive credit 2018 13. Blackstone Enterprises (25 pts) Income Statement Year 2017 Net Revenue $117,000 - Cost of Goods Sold 58,500 - Depreciation Expense 9,500 EBIT 49,000 - Interest Expense 8,500 Income Before Taxes 40,500 Tax Expense 16,200 Net Income 24,300 2017 Dividend 10,000 2017 2017 2018 Year (end of) Assets Current Assets Cash and Equivalents Accounts Receivable Inventory Fixed Assets, Net Total Assets 8,500 25,000 12,500 165,000 211,000 Balance Sheet 2018 Liabilities Current Liabilities Accounts Payable Long-term Debt Total Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholder Equity 21,000 95,750 116,750 41,500 52,750 94,250 Sales will grow by 10% in 2018. All costs, assets, and current liabilities vary directly with sales. The tax rate and the dividend payout ratio remain constant. 13A. Prepare a 2018 forecast of the Income Statement and Balance Sheet. What is the 2018 Dividend and Addition to Retained Earnings? (10 pts) 138. What is the additional financing required to balance the Total Liabilities plus Stockholders' Equity with Total Assets? (5 pts) 13C. If a bank will allow Blackstone to borrow 3 times prior year (2017) EBITDA, how much total Long-Term Debt would the bank allow in 2018 (5 pts)? 13D. What is the company's Average Days in Receivables for 2018? If they are unable to borrow any additional funds in 2018, by how many Days would A/R need to decrease to balance the Balance Sheet (5 pts)? Multi-part Numerical Problems: Answer each part in the space provided. Show your work (step- by-step or calculator inputs) to receive credit 2018 13. Blackstone Enterprises (25 pts) Income Statement Year 2017 Net Revenue $117,000 - Cost of Goods Sold 58,500 - Depreciation Expense 9,500 EBIT 49,000 - Interest Expense 8,500 Income Before Taxes 40,500 Tax Expense 16,200 Net Income 24,300 2017 Dividend 10,000 2017 2017 2018 Year (end of) Assets Current Assets Cash and Equivalents Accounts Receivable Inventory Fixed Assets, Net Total Assets 8,500 25,000 12,500 165,000 211,000 Balance Sheet 2018 Liabilities Current Liabilities Accounts Payable Long-term Debt Total Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholder Equity 21,000 95,750 116,750 41,500 52,750 94,250 Sales will grow by 10% in 2018. All costs, assets, and current liabilities vary directly with sales. The tax rate and the dividend payout ratio remain constant. 13A. Prepare a 2018 forecast of the Income Statement and Balance Sheet. What is the 2018 Dividend and Addition to Retained Earnings? (10 pts) 138. What is the additional financing required to balance the Total Liabilities plus Stockholders' Equity with Total Assets? (5 pts) 13C. If a bank will allow Blackstone to borrow 3 times prior year (2017) EBITDA, how much total Long-Term Debt would the bank allow in 2018 (5 pts)? 13D. What is the company's Average Days in Receivables for 2018? If they are unable to borrow any additional funds in 2018, by how many Days would A/R need to decrease to balance the Balance Sheet (5 pts)
