Prepare a projected income statement and balance sheet

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Question: Using the following ratio, income statement, and balance sheet info below prepare a projected income statement, balance sheet, and statement of cash flows for year 3.                          

Based on initial projections how much long term debt or equity is needed to fund the firms growth at projected increases in sales?

Income statement

year 1

year 2

net sales

6,044

19,889

cost of goods sold

14,048

6204

gross profit

7,893

13685

selling, general and admin expense

803

9221

depreciation and amortization expense

-308

773

interest expense

5,660

292

income before tax

1,691

3399

income tax expense

3,969

1222

net income

3,491

2177

outstanding shares

3,491

3481

 

Balance Sheet

year 1

year 2

cash

1934

1892

receivables

1882

1757

inventories

1055

1066

other current assets

2300

1905

total current assets

7171

6620

property, plants, and equipment

7105

6614

accumulated depreciation

2652

2446

net property, plant, and equipment

4453

4168

other noncurrent assets

10793

10046

total assets

22417

20834

accounts payable and accts liabilities

3679

3905

short term debt

3899

4816

income tax liabilities

851

600

total current liabilities

8429

9321

deferred income taxes

1403

1362

long term debt

1219

835

total noncurrent liabilities

2622

2197

common stock

873

870

capital surplus

3520

3196

retained earnings

20655

18543

treasury stock

13682

13293

shareholder's equity

11366

9316

total liabilities and equity

22417

20834

 

ratios


sales growth

1.02

gross profit margin

69.92

selling, general, and admin expenses

39.28

depreciation/prior year PPE gross

12.14

interest expense/prior year long term debt

5.45

income tax expense/pretax income

29.88

accts receive turnover

10.68

invent turnover

5.73

accts payable turnover

1.64

taxes payable/tax expense

50.33

total assets/stockholders equity

2.06

dividends per share

1.37

capital expenditures/sales

5.91

Reference no: EM131803262

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