Reference no: EM131106755
Create an Excel spreadsheet to organize your answers to the following problem, and submit your Excel file.
[Hint: I recommend you copy this problem to a Word or Excel document and print it out so that you can work with it in a reasonable manner.]
A company published the following information in its financial statements for its 2015 annual report:
|
Sales
|
|
$76,000
|
|
- Cost of goods sold
|
|
49,000
|
|
Gross profit
|
|
27,000
|
|
- Cash Operating expenses
|
$9,000
|
|
|
- Depreciation
|
2,000
|
|
|
Total Operating Expenses
|
|
11,000
|
|
EBIT
|
|
16,000
|
|
- Interest expense
|
|
840
|
|
EBT
|
|
15,160
|
|
- Tax expense
|
|
5,306
|
|
Net Income
|
|
$9,854
|
|
|
|
|
|
- Dividends
|
|
3,942
|
|
Addition to retained earnings
|
|
$5,912
|
|
Cash
|
$9,000
|
|
Marketable securities
|
2,000
|
|
Accounts receivable
|
11,000
|
|
Inventories
|
7,000
|
|
Fixed Assets, net
|
24,000
|
|
Total Assets
|
$53,000
|
|
|
|
|
Accounts payable
|
$8,000
|
|
Accrued payables
|
3,000
|
|
Bonds payable
|
12,000
|
|
Common stock
|
16,000
|
|
Retained earnings
|
14,000
|
|
Total Liabilities and Equity
|
$53,000
|
Sales in 2016 are estimated to be $90,000. Cost of goods sold and $5,000 of the cash operating expenses are considered variable costs.
• Depreciation and the remainder of cash operating expenses are considered to be fixed costs.
• Cash, accounts receivable, inventories, accounts payable, and accrued payables are considered to be spontaneous items.
• Marketable securities, net fixed assets, bonds payable, and common stock are discretionary.
• $5,000 of bonds payable at the end of 2015 are considered "current liabilities," and will be repaid in early 2016.
• The company purchased fixed assets of $3,600 in 2016, but depreciation for 2016 will remain the same dollar amount as it was for 2015.
• The firm will maintain its 2015 dividend payout ratio in 2016.
• The income tax rate for 2016 is expected to be the same as it was in 2015.
Required:.
Prepare the pro-forma 2016 income statement, balance sheet, and statement of cash flows
|
An investment heavy in stocks produces the best results
: The simulation output from Example 11.7 indicates that an investment heavy in stocks produces the best results. Would it be better to invest entirely in stocks? Answer this by rerunning the simulation. Is there any apparent downside to this strat..
|
|
Summerize key components in audience analysis
: Based on the article linked below summerize key components in audience analysis and identify how you might apply then to your persuasion project http://publicspeakingproject.org/PDF%20Files/aud%20analy%20web%201.pdf
|
|
What would be the dollar profit
: How much in dollars does it cost Yohe to produce the SY-20? What is the dollar sale price of the SY-20?b. What is the dollar profit that Yohe makes on the sale of the SY-20? What is the percentage profit? If the U.S. dollar was to weaken by 10% again..
|
|
Construct a signal-flow graph representation of the td
: The TD(0) algorithm has a mathematical composition similar to that of the LMS algorithm described in Chapter 3. Discuss the similarities and differences between these two algorithms.
|
|
Compute the pro-forma income statement and balance sheet
: A company published the following information in its financial statements for its 2015 annual report: Prepare the pro-forma 2016 income statement, balance sheet, and statement of cash flows.
|
|
What is the expected forward exchange rate
: If this project was instead undertaken by a similar U.S.-based company with the same risk-adjusted cost of capital, what would be the net present value and rate of return generated by this project? What is the expected forward exchange rate 1 year fr..
|
|
Design Combinational /sequential electronic logic diagram
: Digital Electronics Assignment Combinational/Sequential Logic design with Integrated Circuits (Dual in line package) Car wash concept with the following steps in a Combinational Logic Diagram
|
|
Analyze the impact of gender and culture on communications
: Describe strategies for using communication techniques to resolve interpersonal conflicts. Analyze the impact of gender and culture on interpersonal communications
|
|
What is the present value in dollars of its equity
: The parent U.S. corporation owns 10 million shares of the subsidiary. What is the present value in dollars of its equity ownership of the subsidiary? Assume a cost of equity capital of 15% for the subsidiary.
|