Click on the icons located on the top-right corners of the data tables below to copy their contents into a spreadsheet. Income Statement Balance Sheet Sales $202,590 Assets Cash and Equivalents Costs Except Depreciation (99,910) $14,950 EBITDA $102,680 Accounts Receivable 1,980 Depreciation (5,940) Inventories 4,100 EBIT $96,740 Total Current Assets $21,030 Property, Plant, and Equipment Interest Expense (net) (490) 9,990 Pre-tax Income $96,250 Total Assets $31,020 Income Tax (33,688) Liabilities and Equity, Accounts Payable Net Income $62,562 $1,550 Debt 4,080 Total Liabilities $5,630 Stockholders' Equity 25,390 Total Liabilities and Equity $31,020 For the next fiscal year, you forecast net income of $49,600 and ending assets of $508,300. Your firm's payout ratio is 10.6%. Your beginning stockholders' equity is $299,900, and your beginning total liabilities are $120,400. non-debt liabilities such as accounts payable are forecasted to increase by $10,400. Assume your beginning debt is $100,400. What amount of equity and what amount of debt would you need to issue to cover the net new financing in order to keep your debt-equity ratio constant? The amount of debt to issue will be S (Round to the nearest dollar.)
Click on the icons located on the top-right corners of the data tables below to copy their contents into a spreadsheet. Income Statement Balance Sheet Sales $202,590 Assets Cash and Equivalents Costs Except Depreciation (99,910) $14,950 EBITDA $102,680 Accounts Receivable 1,980 Depreciation (5,940) Inventories 4,100 EBIT $96,740 Total Current Assets $21,030 Property, Plant, and Equipment Interest Expense (net) (490) 9,990 Pre-tax Income $96,250 Total Assets $31,020 Income Tax (33,688) Liabilities and Equity, Accounts Payable Net Income $62,562 $1,550 Debt 4,080 Total Liabilities $5,630 Stockholders' Equity 25,390 Total Liabilities and Equity $31,020 For the next fiscal year, you forecast net income of $49,600 and ending assets of $508,300. Your firm's payout ratio is 10.6%. Your beginning stockholders' equity is $299,900, and your beginning total liabilities are $120,400. non-debt liabilities such as accounts payable are forecasted to increase by $10,400. Assume your beginning debt is $100,400. What amount of equity and what amount of debt would you need to issue to cover the net new financing in order to keep your debt-equity ratio constant? The amount of debt to issue will be S (Round to the nearest dollar.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Click on the icons located on the top-right corners of the data tables below to copy their contents into a spreadsheet.
Income Statement
Balance Sheet
Sales
$202,590
Assets
Cash and Equivalents
Accounts Receivable
Costs Except Depreciation
$14,950
(99,910)
$102,680
EBITDA
1,980
(5,940)
$96,740
4,100
$21,030
Depreciation
Inventories
EBIT
Total Current Assets
Property, Plant, and
Equipment
Interest Expense (net)
(490)
9,990
Pre-tax Income
$96,250
Total Assets
$31,020
(33,688)
$62,562
Income Tax
Liabilities and Equity.
Accounts Payable
Net Income
$1,550
4,080
$5,630
Debt
Total Liabilities
Stockholders' Equity
Total Liabilities and Equity
25,390
$31,020
For the next fiscal year, you forecast net income of $49,600 and ending assets of $508,300. Your firm's payout ratio is 10.6%. Your beginning stockholders' equity is $299,900, and your beginning total liabilities are $120,400. Your
non-debt liabilities such as accounts payable are forecasted to increase by $10,400. Assume your beginning debt is $100,400. What amount of equity and what amount of debt would you need to issue to cover the net new
financing in order to keep your debt-equity ratio constant?
.....
The amount of debt to issue will be S. (Round to the nearest dollar.)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education