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Operating Costs 30,783 Earning before interest and taxes 5,217. Interest. 1,017 Earnings beforé taxed 4,200 Taxes(40%) 1,680 Net income $2,520 Dividends (60%) $1,512 Addition to retained earnings $1,008 1. Assume that the company was operating at full capacity in 2010 with regard to all items except fixed assets (operating roms and support space); fixed assets in 2010 were utilized to only 75% of capacity By what percentage could 2011 2010 revenues without the eed for an increase in fixed assets? 2. Now suppose 2011 revenues increase by 25% over 2010 revenues. Use the constant growth method to develop a pro forma balance sheet and income statement. Assume ues increase over that Gainesville cannot sell any fixed assets and that any financing required is borrowed as notes payable at an interest rate of 12%. Fixed assets are utilized at 75%.

Operating Costs 30,783 Earning before interest and taxes 5,217. Interest. 1,017 Earnings beforé taxed 4,200 Taxes(40%) 1,680 Net income $2,520 Dividends (60%) $1,512 Addition to retained earnings $1,008 1. Assume that the company was operating at full capacity in 2010 with regard to all items except fixed assets (operating roms and support space); fixed assets in 2010 were utilized to only 75% of capacity By what percentage could 2011 2010 revenues without the eed for an increase in fixed assets? 2. Now suppose 2011 revenues increase by 25% over 2010 revenues. Use the constant growth method to develop a pro forma balance sheet and income statement. Assume ues increase over that Gainesville cannot sell any fixed assets and that any financing required is borrowed as notes payable at an interest rate of 12%. Fixed assets are utilized at 75%.

FINANCIAL ACCOUNTING
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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M Gmail G Google G Grammarly YouTube Facebook OneDrive O Maps HPA 447 Project G... G mark odair twitter -... Operating Costs 30,783 Earning before interest and taxes 5,217 Interest. 1,017 Earnings beforé taxed 4,200 Taxes(40%) 1,680 Net income $2,520 Dividends (60%) $1,512 Addition to retained earnings $1,008 1. Assume that the company was operating at full capacity in 2010 with regard to all items except fixed assets (operating rooms and support space); fixed assets in 2010 were utilized to only 75% of capacity By what percentage could 2011 revenues increase over 2010 revenues without the need for an increase in fixed assets? 2. Now suppose 2011 revenues increase by 25% over 2010 revenues. Use the constant growth method to develop a pro forma balance sheet and income statement. Assume that Gainesville cannot sell any fixed assets and that any financing required is borrowed as notes payable at an interest rate of 12%. Fixed assets are utilized at 75%. 3:59 PM 在 ch 4/21/2021 5.
Transcribed Image Text:M Gmail G Google G Grammarly YouTube Facebook OneDrive O Maps HPA 447 Project G... G mark odair twitter -... Operating Costs 30,783 Earning before interest and taxes 5,217 Interest. 1,017 Earnings beforé taxed 4,200 Taxes(40%) 1,680 Net income $2,520 Dividends (60%) $1,512 Addition to retained earnings $1,008 1. Assume that the company was operating at full capacity in 2010 with regard to all items except fixed assets (operating rooms and support space); fixed assets in 2010 were utilized to only 75% of capacity By what percentage could 2011 revenues increase over 2010 revenues without the need for an increase in fixed assets? 2. Now suppose 2011 revenues increase by 25% over 2010 revenues. Use the constant growth method to develop a pro forma balance sheet and income statement. Assume that Gainesville cannot sell any fixed assets and that any financing required is borrowed as notes payable at an interest rate of 12%. Fixed assets are utilized at 75%. 3:59 PM 在 ch 4/21/2021 5.
assignments/12418989 ☆ * 三 Gmail G Google Grammarly YouTube Facebook OneDrive Maps HPA 447 Project - G... G mark odair twitter -... Gainesville Surgicenter Inc. is a large, ambulatory surgery center owned by a group practice of surgeons in Gainesville, Florida The 2010 financial statements for the fm are shown below: Balance Sheet as of December 31, 2010 (thousands of dollars) Cash $1,800 Accounts Payable $7,200 le Receivables 10,800 Notes Payable 3,472 Inventories 12,600 Accruals 2,520 Total Current Assets 25,200 Total Current Liabilities 13,192 Net Fixed Assets Mortgage bonds 21,600 5,000 Common Stocks 2,000 Retained Earnings 26,608 Total Assets $46,800 Total Liabilitiés & Equip $46,800 Income statement for 2010 (thousands of dollars) Revenues $36,000 Operating Costs 30.783 3:58 PM 后 40 4/21/2021 5.
Transcribed Image Text:assignments/12418989 ☆ * 三 Gmail G Google Grammarly YouTube Facebook OneDrive Maps HPA 447 Project - G... G mark odair twitter -... Gainesville Surgicenter Inc. is a large, ambulatory surgery center owned by a group practice of surgeons in Gainesville, Florida The 2010 financial statements for the fm are shown below: Balance Sheet as of December 31, 2010 (thousands of dollars) Cash $1,800 Accounts Payable $7,200 le Receivables 10,800 Notes Payable 3,472 Inventories 12,600 Accruals 2,520 Total Current Assets 25,200 Total Current Liabilities 13,192 Net Fixed Assets Mortgage bonds 21,600 5,000 Common Stocks 2,000 Retained Earnings 26,608 Total Assets $46,800 Total Liabilitiés & Equip $46,800 Income statement for 2010 (thousands of dollars) Revenues $36,000 Operating Costs 30.783 3:58 PM 后 40 4/21/2021 5.
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