How do I calculate: Sales per day
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
How do I calculate:
Sales per day |
Freed-up cash |

Transcribed Image Text:4
STATEMENT OF STOCKHOLDERS' EQUITY
Common Stock
Total
Retained
Stockholders'
Shares
Amount
Earnings
Equity
O Balances, Dec. 31, 2018
100,000
460,000
203,768
(160,176)
(11,000)
663,768
Add: Net Income, 2019
Less: Dividends to common stockholders
3 Addition (Subtraction) to Retained Eamings
4 Balances, Dec. 31, 2019
(171,176)
492,592
100,000
460,000
32,592
6 Cell for "-1"
7 Cell for "-1"
-1
1
STATEMENT OF CASH FLOWS
2019
1 Operating Activities
Net Income
(160,176)
116,960
378,560
353,600
(280,960)
(572,160)
(164,176)
Depreciation and amortization
Increase in accounts payable
Increase in accruals
Increase in accounts receivable
Increase in inventories
Net cash provided by operating activities
O Long-Term Investing Activities
1
Additions to property, plant, and equipment
(711,950)
(711,950)
Net cash used in investing activities
4 Financing Activities
Increase in notes payable
Increase in long-term debt
Payment of cash dividends
Net cash provided by financing activities
436,808
400,000
(11,000)
825,808
O Summary
1 Net decrease in cash
2 Cash at beginning of the year
B Cash at end of the year
(50,318)
57,600
7,282

Transcribed Image Text:BALANCE SHEET
2020E
2019
2018
2020E
2019
2018
S Assets
Liabilities and equity
Accounts payable
Cash
7,282
632,160
1,287,360
1,926,802
1,202,950
263,160
939,790
85,632
878,000
524,160
489,600
57,600
351,200
715,200
1,124,000
491,000
146,200
344,800
436,800
408,000
300,000
145,600
136,000
200,000
481,600
323,432
460,000
203,768
663,768
B Accounts receivable
Accruals
Inventories
Notes payable
1,716,480
2,680,112
934,000
116,960
817,040
636,808
1,650,568
723,432
Total current assets
Total current liabilities
Long-term debt
Common stock (100,000 shares)
Retained eanings
Total common equity
1,144,800
400,000
1,718,986
233,366
1,952,352
1 Gross fixed assets
2 Less: accumulated depreciation
460,000
3
Net fixed assets
32,592
4
492,592
5
6 Total assets
3,497,152
2,866,592
1,468,800
Total liabilities and equity
3,497,152
2,866,592
1,468,800
7
8
Days per year
Industry average DSO
365
9
INCOME STATEMENT
32
:1
2020E
2019
2018
2
Sales per day
3 Sales
Accounts receivable new policy
6,900,600
5,875,992
550,000
6,425,992
474,608
116,960
357,648
70,008
287,640
31,866
255,774
6,126,796
4 Cost of goods sold
-5 Other expenses
6 Total operating expenses, excluding depreciation and amortization
7 EBITDA
8 Depreciation and amortization
9 Eanings before interest and taxes (EBIT)
-0 Interest expense
1 Eamings before taxes (EBT)
-2 Taxes (25%)
-3 Net income
3,432,000
2,864,000
358,672
3,222,672
209,328
18,900
190,428
43,828
146,600
36,650
5,528,000
Freed-up cash
519,988
6,047,988
78,808
116,960
(38,152)
122,024
(160,176)
(160,176)
109,950
-4
5 EPS
-6 DPS
-7 Book value per share
-8 Stock price
-9 Shares outstanding
-0 Tax rate
-1 Lease payments
-2 Sinking fund payments
(1.602)
0.110
1.023
1.100
0.220
0.275
7.809
4.926
6.638
12.17
2.25
8.50
250,000
100,000
100,000
0.25
0.25
0.25
40,000
40,000
40,000
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