Reference no: EM131190932
Mike's Place
Assets 2013 2014 Liabilities & Owners Equity 2013 2014
Current Assets Cash 815 906 Current Liabilities Account Payable 983 1292
Notes Payables 720 840
Accounts Receivables 2405 2510 Other 105 188
Inventory 4608 4906 Total CL 1808 2320
Total Cash 7828 8322 Long term Debt 4817 4960
Fixed Assets Owner's Equity
Common Stock 10000 10000
Net PPE 15164 19167
Total Assets 22992 27489 Retained Earnings 6367 10209
Total OE 16367 20209
Total Liabilities & OE 22992 27489
Income Statement 2014
Sales 33500
Cost of Goods Sold 18970
Depreciation 1980
EBIT 12550
Int 486
EBT 12064
Taxes 4222
NI 7842
A. Suppose Mick's is projecting a 20% increase in sales for the coming year, and that cost of goods sold and all expenses remain a constant percentage of sales. Also assume that the amount of depreciation and interest paid and the firm's tax rate (35%) remain unchanged, Create the Pro Forma Income statement for 2055. Assume the firm's dividend payout is 50%. What will the firm pay out in dividends in 2015.
B. Assume all information given in part A. Also, assume all assets and current liabilities are proportional to sales but notes payable, long-term debt and common stock are not proportional to sales. If the firm's tax rate remains unchanged, the dividend payout is 55% what is the external financing needed (EFN) for 2015? Create the Pro Forma Balance Sheet for 2015?
C. Given the information in part A & B. If the firm is only operating at 82% of capacity, what are the full capacitiy sales and what is the external financing needed (EFN) for 2005?
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