Balance SheetLiabilities & EquityShort Term DebtLong Term DebtTotal LiabilitiesAmount (Tk.)5,200| 6,000| 11,200Amount (Tk)7,200AssetsCurrent AssetsFixed Assets17,200Common Stock3,200Accumulated Retained 10,000EarningsTotal Equity13,200|24,400Total Assets24,400Total Liabilities &EquityCurrent assets, fixed assets and short term debt are linked with sales revenue. Tax rate and dividendpayout will remain the same.a. Construct the firm's pro forma income statement and balance sheet for next year and confirm theexternal 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 Statementsales growth rate 14.5%Amount (Tk.)26,00021,0005,0001,3503,650SalesCostsTaxable Income-TaxesNet Income1,0952,555DividendsAddition to Retained Earnings

Hello, Here I present the proforma income statement for the next year along with the next year-end…

Answered: Lom 17,200 Con Ac

Business

Accounting

Lom 17,200 Con Ac

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, 2021 Tractor Company will acquire a new asset that costs $390,000 and that is anticipated to have a salvage value of $34,000 at the end of four years. The new asset: qualifies as three-year property under the Modified Accelerated Cost Recovery System (MACRS) • will replace an old asset that currently has a tax basis of $96,000 and that can be sold on this date for $76,000 (net of selling costs) • will continue to generate the same operating revenues as the old asset ($130,000 per year). However, it is predicted that savings in cash operating costs will be experienced as follows: a total of $130,000 in each of the first three years, and $91,000 in the fourth year. ● Tractor is subject to a combined income tax rate, t, of 40% and rounds all computations to the nearest dollar. Tractor's fiscal year coincides with the calendar year. Assume that any gain or loss affects the taxes paid at the end of the year in which the gain or loss occurs. The company uses the net present…
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nces Mc raw Mill Exercise 5-5 (Algo) Solving for unknowns; single amounts [LO5-4] For each of the following situations involving single amounts, solve for the unknown. Assume that interest is compounded annually. (i= interest rate, and n = number of years) (FV of $1. PV of $1. FVA of $1. PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar amount.) 1. 2. 3. 4. 5. Present Value Future Value $ $ $ $ i $ 80,000 4.5% 31,841 $ 94,000 15,762 $ 50,000 84,482 $ 200,000 13,291 8.0% 9.0% n 9 16 10 15
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