Reference no: EM131097300
Assignment
Create an Excel spreadsheet to organize your answers to the following problem, and submit your Excel file as an attachment by clicking on the appropriate button on this page.
[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.
|
Trade policy-calculate equilibrium price
: The demand for cars in Home is q = 30 – P and the supply of cars in Home is q = P. The demand for cars in Foreign is q = 10 – P and the supply of cars in Foreign is q = P. Calculate the autarky equilibrium price and quantity in each country. Who is t..
|
|
The sole proprietor of shear madness
: Stephanie Zane is the sole proprietor of Shear Madness, a hair salon. Her revenue comes from two sources, haircuts and the sale of hair products.
|
|
Describe what happens when you try to push a heavy box
: Describe what happens when you try to push a heavy box (> 200lbs) that has been sitting on the floor for some time
|
|
Uses both labor and capital in manufacturing process
: A firm uses both labor and capital in its manufacturing process which can be substituted for each other to some degree. The cost of labor is $15 per hour, and the last worker hired produced 20 units per hour. Machinery can be rented at $32 per hour, ..
|
|
Prepare the pro-forma income statement and balance sheet
: Create an Excel spreadsheet to organize your answers to the following problem, and submit your Excel file as an attachment by clicking on the appropriate button on this page. Prepare the pro-forma 2016 income statement, balance sheet, and statement..
|
|
Required assignment 2-it strategic planning
: Using a company of your choice, determine the strategic business goals. Develop an IT strategy that aligns to the business goals. You can use the balanced scorecard approach or you can develop your own method for defining and aligning the IT strat..
|
|
How do government subsidies affect farm production
: How do government subsidies affect farm production, income and prices? How do (unregulated) markets encourage pollution? Who pays for subsidies? How can government policy best ensure an optimal environment?
|
|
What is the kinetic energy of he fruit fly
: How much kinetic energy would put the thread on the verge of breaking? What is the kinetic energy of
|
|
Marginal and average values
: Consider the following scenario to understand the relationship between marginal and average values. Suppose Raphael is a professional basketball player, and his game log for free throws can be summarized in the following table. Fill in the columns wi..
|