Lom 17,200 Con Ac
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 51E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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Question
![Balance Sheet
Liabilities & Equity
Short Term Debt
Long Term Debt
Total Liabilities
Amount (Tk.)
5,200
| 6,000
| 11,200
Amount (Tk)
7,200
Assets
Current Assets
Fixed Assets
17,200
Common Stock
3,200
Accumulated Retained 10,000
Earnings
Total Equity
13,200
|24,400
Total Assets
24,400
Total Liabilities &
Equity
Current assets, fixed assets and short term debt are linked with sales revenue. Tax rate and dividend
payout will remain the same.
a. Construct the firm's pro forma income statement and balance sheet for next year and confirm the
external funds needed that you calculated in part (a).
b. Calculate the sustainable growth rate for the company.
c. Why the company may not be able to maintain the targeted sustainable growth rate? Explain.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd8071c54-ff09-4183-80a6-34c72c3871a1%2Fa2f1c8b5-cbb1-494c-bbba-b3d293bb8d01%2F8k0qwi_processed.png&w=3840&q=75)
Transcribed Image Text:Balance Sheet
Liabilities & Equity
Short Term Debt
Long Term Debt
Total Liabilities
Amount (Tk.)
5,200
| 6,000
| 11,200
Amount (Tk)
7,200
Assets
Current Assets
Fixed Assets
17,200
Common Stock
3,200
Accumulated Retained 10,000
Earnings
Total Equity
13,200
|24,400
Total Assets
24,400
Total Liabilities &
Equity
Current assets, fixed assets and short term debt are linked with sales revenue. Tax rate and dividend
payout will remain the same.
a. Construct the firm's pro forma income statement and balance sheet for next year and confirm the
external funds needed that you calculated in part (a).
b. Calculate the sustainable growth rate for the company.
c. Why the company may not be able to maintain the targeted sustainable growth rate? Explain.
![Question: The ABC Company has forecast a sales growth rate of . Percent (see appendix) for next year.
The current financial statements are shown here:
Income Statement
sales growth rate 14.5%
Amount (Tk.)
26,000
21,000
5,000
1,350
3,650
Sales
Costs
Taxable Income
-Taxes
Net Income
1,095
2,555
Dividends
Addition to Retained Earnings](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd8071c54-ff09-4183-80a6-34c72c3871a1%2Fa2f1c8b5-cbb1-494c-bbba-b3d293bb8d01%2Fia7zwuk_processed.png&w=3840&q=75)
Transcribed Image Text:Question: The ABC Company has forecast a sales growth rate of . Percent (see appendix) for next year.
The current financial statements are shown here:
Income Statement
sales growth rate 14.5%
Amount (Tk.)
26,000
21,000
5,000
1,350
3,650
Sales
Costs
Taxable Income
-Taxes
Net Income
1,095
2,555
Dividends
Addition to Retained Earnings
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