Write the modified equations for equity and net sales

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Table presents a computer spreadsheet for estimating R& E Sup-plies' external financing required for 2009. The text mentions that with modifications to the equations for equity and net sales, the fore-cast can easily be extended through 2010. Write the modified equations for equity and net sales.

R& E Supplies Assumptions for 2009 ($ thousands)

Growth rate in net sales 30.0%
Tax rate 45.0%
Cost of goods sold/ net sales 86.0%
Dividend/ earnings after tax 50.0%
Gen., sell. & admin. expenses/net sales 11.0%
Current assets/ net sales 29.0%
Net fixed assets $270
Long- term debt $560
Current liabilities/ net sales 14.4%
Current portion long- term debt $100
Interest rate 10.0%

 

Reference no: EM13305708

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