Financial Statements for Royal CorporationActual 2016 and Pro Forma 2017 ($ millions)Income StatementNet salesCost of goods soldOther expensesDepreciation expenseEBITInterest expenseEarnings before taxTaxNet incomeDividends paid90Add. to retained earnings $ 269O $4,563O $4,663$4.45320162017$ 47,616 $52,378 Cash & securities40,71844,790 Accounts receivable5,1715,688 Inventories1,0001,100727800215215512585154176$ 359$ 409$5,663Balance Sheet102Net fixed assetsTotal assetsBank loan (short-term)Accounts payableLong-term debtTotal liabilities2016$9512017$1,0465,6666,2334,236 4,6604,04814,901$392In the above financial statements, Royal Corporation has prepared (incomplete) pro forma financialstatements for 2017 based on actual financial statements for 2016. Royal Corp. used the percent-of-sales method, assuming a sales growth rate of 10% for 2017. If capital expenditures are plannedto be $1,615 in 2017, then what would be the appropriate projection for net fixed assets in 2017?7,4192,1489,959Shareholders' equity4,942Total liabilities & equity $ 14,901$4318,161

Net fixed assets are the capital-intensive resources of the company that generate income for the…

Financial Statements for Royal Corporation Actual 2016 and Pro Forma 2017 ($ millions) Income Statement Net sales Cost of goods sold Other expenses Depreciation expense EBIT Interest expense Earnings before tax Tax Net income Dividends paid 90 Add. to retained earnings $269 O $4,563 O $4,663 O $4,453 2016 2017 $ 47,616 $52,378 Cash & securities 40,718 44,790 Accounts receivable 5,171 5,688 Inventories 1,000 1,100 727 800 215 215 512 585 154 176 $ 359 $409 $5,663 Balance Sheet 102 Net fixed assets Total assets 2016 $951 5,666 4,236 4,048 14,901 Bank loan (short-term) Accounts payable 7,419 Long-term debt 2,148 Total liabilities 9,959 Shareholders' equity 4,942 Total liabilities & equity $14,901 $392 In the above financial statements, Royal Corporation has prepared (incomplete) pro forma financial statements for 2017 based on actual financial statements for 2016. Royal Corp. used the percent- of-sales method, assuming a sales growth rate of 10% for 2017. If capital expenditures are planned to be $1,615 in 2017, then what would be the appropriate projection for net fixed assets in 2017? 2017 $ 1,046 6,233 4,660 $431 8,161

Financial Statements for Royal Corporation Actual 2016 and Pro Forma 2017 ($ millions) Income Statement Net sales Cost of goods sold Other expenses Depreciation expense EBIT Interest expense Earnings before tax Tax Net income Dividends paid 90 Add. to retained earnings $269 O $4,563 O $4,663 O $4,453 2016 2017 $ 47,616 $52,378 Cash & securities 40,718 44,790 Accounts receivable 5,171 5,688 Inventories 1,000 1,100 727 800 215 215 512 585 154 176 $ 359 $409 $5,663 Balance Sheet 102 Net fixed assets Total assets 2016 $951 5,666 4,236 4,048 14,901 Bank loan (short-term) Accounts payable 7,419 Long-term debt 2,148 Total liabilities 9,959 Shareholders' equity 4,942 Total liabilities & equity $14,901 $392 In the above financial statements, Royal Corporation has prepared (incomplete) pro forma financial statements for 2017 based on actual financial statements for 2016. Royal Corp. used the percent- of-sales method, assuming a sales growth rate of 10% for 2017. If capital expenditures are planned to be $1,615 in 2017, then what would be the appropriate projection for net fixed assets in 2017? 2017 $ 1,046 6,233 4,660 $431 8,161

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

See similar textbooks

Related questions

Q: Trying to calculate, Times Interest Earned. tax rate is 22% 3M Company Consolidated Statements…

A: Times interest earned ratio = Income before interest and tax expense (Operating income) / Interest…

Q: Current Assets - 2015 - $316 2016 - $450 Net Fixed Assets - 2015 $1260…

A: A balance sheet is the statement of the financial position which shows the balance of assets,…

Q: Cash Accounts Receivable Inventory Total Netrad ASSULE Total Assets O 16.05 O 9.63 Net Sales Less:…

A: The times interest earned ratio is a financial metric used to assess a company's ability to meet its…

Q: The net cash provided (used) by financing activities is

A: Solution The cash flow statement is a financial statement which is used to calculate the cash…

Q: The following table contains financial statement information for Walmart Inc. $ millions Total…

A: RETURN ON EQUITY The return on equity is a Measure of the Profitability of a Business in relation to…

Q: Current assets Cash Accounts receivable Inventory Total Assets Sales Cost of goods sold Depreciation…

A: Net income$35,207.00Sales$186,970.00Total assets in 2015$70,215.00Total assets in…

Q: You have gathered this information on JJ Enterprises: 2014 2015 Sales $6.318 $7.202 COGS 3,945 4,460…

A: Operating Cash Flow (OCF) is a measure of the amount of cash generated by a company's normal…

Q: Current Assets Cash Accs Rec Inventory Fixed Assets Total Assets 2015 150 350 600 1,100 Please…

A: An income statement and a balance sheet are two financial statements used to analyze a company's…

Q: Net profit margin Gross profit margin Current ratio

A: As per the guidelines only three subparts are allowed to be solved. Please upload the questions…

Q: Cash Flow Balance Sheet Cash Accounts Receivable Inventory CURRENT ASSETS Fixed Assets: Gross Accum.…

A: The Statement of Financial Position - The statement of financial position is the position of the…

Q: The following is data for 123 Corp: Book value, Dec 31 2016 Comprehensive income Dividends Required…

A: Normal income is calculated as the book value at the beginning of the year multiplied by the…

Q: Bonita Industries has recently decided to go public and has hired you as an independent CPA. One…

A: Cash flow from investing activity includes transactions like the purchase and sale of long-term…

Q: Net sales.. Gross margin Net income. Cummins' share of net income.. $7,352 $7,050 $5,654 1,373 1,422…

A: Since you have posted a question with multiple sub-parts, we will solve first two sub-parts for you.…

Q: Ramakrishnan, Inc., reported 2015 net income of $40 million and depreciation of $2,900,000. The top…

A: Cash flows from operating activities shows all cash inflows and cash outflows related to operations…

Q: Kool Kites Inc. 2018 statement of comprehensive Income ($ in millions) Net sales Less: Cost of goods…

A: The net profit which is earned will be distributed as a dividend or added to the retained earnings.…

Q: Use the following information to answer this question. Bayside, Inc. 2017 Income Statement ($ in…

A: Given, The net income is $987 The common stock in the year 2016 is $3,240 The common stock in the…

Q: BALANCE SHEET 2017 2018 Cash 24 20 Accounts Receivable 8 15 Inventory 53 45 Total Current Assets 85…

A: The amount of cash that a corporation generates that could possibly be transferred to shareholders…

Q: Sales revenue Cost of goods sold Gross profit Expenses Pretax income Income tax expense (30%) Net…

A: Overstating inventory means the value of inventory was recorded at a higher value than its actual…

Q: The income statement of a corporation shows the following balance in Sales Revenue for the years…

A: Horizontal analysis is prepared to calculate the variance from previous year by showing…

Q: Net sales Windswept, Incorporated 2021 Income Statement Cost of goods sold Depreciation ($ in…

A: The equity multiplier is a financial leverage ratio that measures the proportion of a company's…

Q: Using the financial data for Key Wahl Industries Sales Net Profit After Tax $337,5000 Total Assets…

A: The debt ratio is also called Debt to Asset ratio which indicates percentage of total assets that is…

Q: The following are financial statements of Carla Vista Co.. Carla Vista Co. Income Statement For…

A: In order to assess the liquidity of a business, it is important to know the working capital, current…

Question

Financial Statements for Royal Corporation
Actual 2016 and Pro Forma 2017 ($ millions)
Income Statement
Net sales
Cost of goods sold
Other expenses
Depreciation expense
EBIT
Interest expense
Earnings before tax
Tax
Net income
Dividends paid
90
Add. to retained earnings $ 269
O $4,563
O $4,663
$4.453
2016
2017
$ 47,616 $52,378 Cash & securities
40,718
44,790 Accounts receivable
5,171
5,688 Inventories
1,000
1,100
727
800
215
215
512
585
154
176
$ 359
$ 409
$5,663
Balance Sheet
102
Net fixed assets
Total assets
Bank loan (short-term)
Accounts payable
Long-term debt
Total liabilities
2016
$951
2017
$1,046
5,666
6,233
4,236 4,660
4,048
14,901
$392
In the above financial statements, Royal Corporation has prepared (incomplete) pro forma financial
statements for 2017 based on actual financial statements for 2016. Royal Corp. used the percent-
of-sales method, assuming a sales growth rate of 10% for 2017. If capital expenditures are planned
to be $1,615 in 2017, then what would be the appropriate projection for net fixed assets in 2017?
7,419
2,148
9,959
Shareholders' equity
4,942
Total liabilities & equity $ 14,901
$431
8,161

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define net fixed assets.

VIEW

Step 2: Compute the net fixed assets for the year 2017.

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Use the following statement of financial position and statement of comprehensive income Blue Bird, Inc. 2018 Statement of comprehensive income Net Sales Less: Cost of Goods Sold Less: Depreciation Earnings Before Interest and Taxes Less: Interest Paid Taxable Income Less: Taxes Net Income Blue Bird, Inc. Statement of financial position Years ended 2017 and 2018 $12,630 8,240 1,010 3,380 750 $2,630 920 $1,710 Cash Accounts rec. Inventory Total 2017 2018 $640 $590 1,200 1,390 2,300 2,470 $4,140 $4,450 Net fixed assets 4,640 5,200 Total assets $8,780 $9,650 Total liabilities & equity Accounts payable Long-term debt Common stock Retained earnings 2017 2018 2,500 2,800 4,000 4,500 1,040 1,690 $8,780 $9,650 Blue Bird, Inc. has 1,500 shares of stock outstanding. The price-earnings ratio for 2018 is 21. What is the market price per share of stock?
Dividends per ShareThe following financial data is from Hi-Tech Instruments' financial statements (thousands of dollars, except earnings per share.) 2016 Sales revenue $210,000 Cost of goods sold 125,000 Net income 8,800 Dividends 3,100 Earnings per share 4.40 Hi-Tech Instruments, Inc.Balance Sheet (Thousands of Dollars) Dec. 31, 2016 Dec. 31, 2015 Assets Cash $18,300 $18,000 Accounts receivable (net) 46,000 41,000 Inventory 39,500 43,700 Total current assets 103,800 102,700 Plant assets (net) 52,600 50,500 Other assets 15,600 13,800 Total assets $172,000 $167,000 Liabilities and Stockholders' Equity Notes payable-banks $6,000 $6,000 Accounts payable 22,500 18,700 Accrued liabilities 16,500 21,000 Total current liabilities 45,000 45,700 9% Bonds payable 40,000 40,000 Total liabilities 85,000 85,700 Common stock, $25 par value (2,000,000 shares) 50,000 50,000 Retained earnings 37,000 31,300 Total…
Selected balance sheet and income statement information for Home Depot follows. $ millions Operating assets Jan. 31, 2016 Feb. 01, 2015 $40,333 $38,223 Nonoperating assets 2,216 1,723 Total assets 42,549 39,946 Operating liabilities 14,918 13,427 Nonoperating liabilities 21,315 17,197 Total liabilities 36,233 30,624 Total stockholders' equity 6.316 9.322 Sales 88,519 Net operating profit before tax (NOPBT) 11,774 Non-operating expense before tax 753 Tax expense 4,012 Net income 7,009 Compute the return on equity for the year ended January 31, 2016. You want your all-equity (no debt) firm to provide a return on equity of 13.5%. If total assets are $375,000, how much must be generated in net income to make this target? a. $41,234 b. $43,405 c. $45,689 d. $48,094 e. $50,625 For the FY 2016, Alpha Company had net sales of $950,000 and a net income of $65,000, paid income taxes of $30,000, and had before-tax interest expense of $15,000. Use this information to determine the: 1. Times…
How much net income did Wolf Enterprises earn during 2021? Net income for 2021 was Cost of services sold Accumulated depreciation Selling, general, and administrative expenses Retained earnings, December 31, 2020 $ 14,500 Service revenue 40,800 Depreciation expense Other revenue 6,100 Dividends declared Income tax expense 2,700 Income tax payable 32,400 4,200 700 700 500 1,100
Debt to Equity Total Debt Ratio Times Interest Earned
($n millions) Net soles Cost of goods sold Depreciation Earnings before interest and taxes Interest paidl Taxable incone 7,010 470 $1,320 165 $1,214 425 Taxes Net. incone $789 windswept, Inc. 2016 and 2017 Balance sheets, ($ in nillions) 2016 2017 2016 2017 Cash Accounts re. Inventory Total Net fixed 33sets Accounts payable Long-tera debt, Conmon stock Retained earnings $240 S 270 $1,410 $1,410 1,110 1,318 1,820 920 1,848 1,710 3,368 3,280 658 3,430 4,008 Total assets $6,530 S6,9 Total 11ab. & equity $6,530$6.988
Pro Forma Financial Statement Information for Ideko 2014 - 2019 Year 1. Raw Material 2. Depreciation 3. Wages Payable 4. Interest Expense 5. Finished Goods 6. Other Accounts Payable 7. Accounts Receivable 8. Cash Balance 10. Interest Tax $22,170 $30,510 $35,195 $26,420 $21,260 2014 1,973 5,500 1,294 75 4,192 3,360 18,493 6,164 3,736 2015 1,534 5,450 1,433 6,800 4,967 4,099 14,525 7,262 2,796 2016 1,775 5,405 1,695 6,800 5,838 4,953 16,970 8,485 3,364 2017 2,039 6,865 1,941 6,800 6,815 5,938 19,689 9,845 3,748 The amount of net working capital for Ideko in 2017 is closest to: 2018 2,329 7,678 2,211 7,820 7,911 6,900 22,709 11,355 4,513 2019 2,646 7,710 2,570 8,160 9,138 7,878 26,059 13,030 5,678
Forecast the Balance Sheet Following is the balance sheet for Medtronic PLC for the year ended April 29, 2016. Medtronic plc Consolidated Balance Sheets ($ millions) Apr. 29, 2016 Apr. 24, 2015 Current assets Cash and cash equivalents $2,876 $4,843 Investments 9,758 14,637 Accounts receivable 5,562 5,112 Inventories 3,473 3,463 Tax assets 697 1,335 Prepaid expenses and other current assets 1,234 1,454 Total current assets 23,600 30,844 Property, plant, and equipment, net 4,841 4,699 Goodwill 41,500 40,530 Other intangible assets, net 26,899 28,101 Long-term tax assets 1,383 774 Other assets 1,559 1,737 Total assets $99,782 $106,685 Current liabilities Short-term borrowings $993 $2,434 Accounts payable 1,709 1,610 Accrued compensation 1,712 1,611 Accrued income taxes 566 935 Deferred tax liabilities - 119…
Current Assets Cash A/R Inventory Total Net Plant & Equip Total Assets Tomson Corporation 2013 and 2014 Statement of Financial Position Assets 2013 $ 8,436 21,530 38.760 $ 68,726 $ 226.706 $295,432 2014 $ 10,157 23,406 42.650 $ 76,213 Current Liabilities A/P Notes Payable Total 1. The current ratio for each year 2. The quick ratio for each year Long-term Debt Owner's Equity Common Stock & Paid-in Surplus Retained Earnings $248,306 Total Total Liabilities & $324,519 Owners Equity Liabilities 3. The cash ratio for each year 4. The NWC to total assets ratio for each year 2013 5. The debt-equity ratio and the equity multiplier for each year 6. The total debt ratio and the long-term debt ratio for each year Round all answers to 2 decimal places. $ 43,050 18.384 $61.434 $ 25.000 $ 40,000 168.998 $ 208,998 $ 295,432 2014 1. Prepare: The 2014 combined common-size, common-base year statement of financial position for Tomson. Round your intermediate calculations to 2 decimal places…
You have gathered this information on JJ Enterprises: 2014 2015 Sales $6.318 $7,202 COGS 3,945 4.460 Interest 303 277 Depreciation 1,204 1,196 Cash 672 418 Accounts receivables 601 578 Current liabilities 414 463 Inventory 1,215 1.598 Long-term debt 4,780 4.103 Net fixed assets 7.700 7,330 Shareholder's equity 4.994 5.358 Taxes 217 317 What is the operating cash flow for 2015? Al $1,823 B) $1.229 C) $1,367 D) $2,425 E) $1,766
Sales Costs Other expenses Earnings before interest and taxes Interest paid Taxable income Taxes (21%) Net income Dividends Addition to retained earnings Current assets Cash CROSBY, INCORPORATED 2023 Income Statement Accounts receivable Inventory Total Total assets Assets Fixed assets Net plant and equipment EFN $ 21,340 44,280 98,960 $ 164,580 $ 430,000 $ 28,203 65,807 $ 594,580 $ 754,000 589,000 25,000 $ 140,000 21,000 CROSBY, INCORPORATED Balance Sheet as of December 31, 2023 $ 119,000 24,990 $ 94,010 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings Total Total liabilities and owners' equity $ 55,500 14,700 $ 70,200 $ 137,000 $ 118,000 269,380 $ 387,380 $ 594,580 If the firm is operating at full capacity and no new debt or equity is issued, what is the external financing needed to support the 25 percent growth rate in sales? Note: Do not round…

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS