The 2019 financial statements for Growth Industries are presented below.SalesCostsEBITInterest expenseTaxable incomeTaxes (at 21%)Net incomeDividendsAddition to retained earningsCurrent assetsCashINCOME STATEMENT, 2019Total assetsAccounts receivableInventoriesTotal current assetsNet plant and equipmentAssetsExternal financing$$43,608$ 29,0729,00014,00037,000$ 60,000270,000$ 330,000215,000$ 330,000$ 115,00023,000$BALANCE SHEET, YEAR-END, 2019$92,00019,32072,680LiabilitiesCurrent liabilitiesAccounts payableTotal current liabilitiesLong-term debtStockholders' equityCommon stock plus additional paid-in capitalRetained earningsTotal liabilities plus stockholders' equity$$16,00016,000230,00015,00069,000$ 330,000Sales and costs are projected to grow at 30% a year for at least the next 4 years. Both current assets and accounts payable areprojected to rise in proportion to sales. The firm is currently operating at 75% capacity, so it plans to increase fixed assets in proportionto sales. Interest expense will equal 10% of long-term debt outstanding at the start of the year. The firm will maintain a dividend payoutratio of 0.60.What is the required external financing over the next year? (Enter excess cash as a negative number with a minus sign.)

Sales=$330000Net income=$72680Total assets=$330000Account payable=$16000Growth rate=g=30%Dividend…

2019 financial statements for Growth Industries are presented below. ales Costs BIT INCOME STATEMENT, 2019 Interest expense axable income axes (at 21%) let income Dividends Addition to retained earnings Current assets Cash Assets Accounts receivable Inventories Total current assets et plant and equipment $ $ 43,608 $ 29,072 9,000 14,000 37,000 $ 330,000 215,000 $ 60,000 270,000 $ $ $ 115,000 23,000 BALANCE SHEET, YEAR-END, 2019 92,000 19,320 72,680 Current liabilities Accounts payable Liabilities Total current liabilities Long-term debt Stockholders' equity Common stock plus additional paid-in capital $ 16,000 $ 16,000 230,000 15,000

2019 financial statements for Growth Industries are presented below. ales Costs BIT INCOME STATEMENT, 2019 Interest expense axable income axes (at 21%) let income Dividends Addition to retained earnings Current assets Cash Assets Accounts receivable Inventories Total current assets et plant and equipment $ $ 43,608 $ 29,072 9,000 14,000 37,000 $ 330,000 215,000 $ 60,000 270,000 $ $ $ 115,000 23,000 BALANCE SHEET, YEAR-END, 2019 92,000 19,320 72,680 Current liabilities Accounts payable Liabilities Total current liabilities Long-term debt Stockholders' equity Common stock plus additional paid-in capital $ 16,000 $ 16,000 230,000 15,000

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Refine Assumptions for PPE ForecastFollowing are the income statement and balance sheet for Medtronic PLC. Consolidated Statement of Income ($ millions) For Fiscal Year Ended April 26, 2019 Net sales $30,557 Costs and expenses Cost of products sold 9,155 Research and development expenses 2,330 Selling, general, and administrative expense 10,418 Amortization of intangible assets 1,764 Restructuring charges, net 198 Certain litigation charges, net 166 Other operating expense, net 258 Operating profit (loss) 6,268 Other nonoperating income, net (373) Interest expense 1,444 Income (loss) before income taxes 5,197 Income tax provision 547 Net income (loss) 4,650 Net (income) loss attributable to noncontrolling interests (19) Net income (loss) attributable to Medtronic $ 4,631 Consolidated Balance Sheet ($ millions) April 26, 2019 Current assets Cash and cash equivalents $ 4,393 Investments 5,455 Accounts receivable, less…
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The 2019 financial statements for Growth Industries are presented below. INCOME STATEMENT, 2019 Sales $ 270,000 Costs 185,000 EBIT $ 85,000 Interest expense 17,000 Taxable income $ 68,000 Taxes (at 21%) 14,280 Net income $ 53,720 Dividends $ 21,488 Addition to retained earnings $ 32,232 BALANCE SHEET, YEAR-END, 2019 Assets Liabilities Current assets Current liabilities Cash $ 3,000 Accounts payable $ 10,000 Accounts receivable 8,000 Total current liabilities $ 10,000 Inventories 29,000 Long-term debt 170,000 Total current assets $ 40,000 Stockholders’ equity Net plant and equipment 210,000 Common stock plus additional paid-in capital 15,000 Retained earnings 55,000 Total assets $ 250,000 Total liabilities plus stockholders' equity $ 250,000 Sales and…
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