2024 net income ? Financial accounting Pacific Goods Company recently reported the following 2023 income statement(in millions of dollars):SalesItemAmount (in millions)$500Operating costs including depreciation $380EBITInterestEBTTaxes (35%)Net income$120$30$90$31.5$58.5$20DividendsAddition to retained earnings$38.5For the coming year, the company is forecasting a 20% increase in sales, and itexpects that its year-end operating costs, including depreciation, will equal 70%of sales. The company's tax rate, interest expense, and dividend payout ratio areall expected to remain constant.What is Pacific Goods Company's projected 2024 net income?

Step 1: Definition of Projected Net IncomeProjected Net Income refers to the estimated or forecasted…

Answered: Pacific Goods Company recently reported…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 20P

See similar textbooks

Similar questions

What is devaneys projected 2019 net income?
What is devaneys projected 2019 net income? General accounting
The Optical scam company has forecast a sales growth of 20 percent for next year. The current financial statements are shown below: What is pro forma balance sheet for next year? Sales $ 31,600,000 Costs 26,675,500 Taxable income $ 4,924,500 Taxes 1,723,575 Net income $ 3,200,925 Dividends $ 1,280,370 Addition to retained earnings 1,920,555 Balance Sheet Assets Liabilities and Owners' Equity Current assets $ 7,320,000 Accounts payable $ 5,688,000 Long-term debt 6,636,000 Fixed assets 20,172,000 Common stock $ 1,594,000 Accumulated retained earnings 13,574,000 Total equity $ 15,168,000 Total assets $ 27,492,000 Total liabilities and equity
please answer the following question
Austin Grocers recently reported the following 2018income statement (in millions of dollars): For the coming year, the company is forecasting a 25% increase in sales, and it expects thatits year-end operating costs, including depreciation, will equal 70% of sales. Austin’s taxrate, interest expense, and dividend payout ratio are all expected to remain constant.a. What is Austin’s projected 2019 net income?b. What is the expected growth rate in Austin’s dividends?
pharoah marble company has total assets of 13350000 sales of 18690000 and net income of 4672500. management expects sales to grow by 25% next year. all assets and costs (including taxes) vary directly with sales, and management expects to maintain a payout ratio of 65%. Calculate Pharoah's EFN.
It is currently the beginning of 2024. The information regarding a company is below: • Sales was $350 million in 2023. Sales is predicted to grow at 6% per year during 2024-2025, and 2% starting 2026. Throughout all years, o Net income = 32% of sales; Depreciation = 9% of sales; o Interest expenses = 2% of sales; o Investment in gross fixed assets = 35% of sales; o Investment in working capital (excluding cash and short-term debt) = 6% of sales; 。 22% of the investment in assets (including investments in gross fixed assets and working capital) will be financed with net borrowing. Cost of equity = 15%; Number of shares outstanding = 2 million
The Optical Scam Company has forecast a sales growth rate of 20 percent for next year. Current assets, fixed assets, and short-term debt are proportional to sales. The current financial statements are shown here: Sales Costs Taxable income Taxes Net income Dividends Addition to retained earnings Current assets Fixed assets Total assets Assets Current assets Fixed assets INCOME STATEMENT Total assets $ 7,230,000 18,390,000 $ 1,149,982 1,724,853 Assets b-2. External financing needed c. Sustainable growth rate $ 25,620,000 a. Calculate the external funds needed for next year using the equation from the chapter. Note: Do not round intermediate calculations. External financing needed b-1. Prepare the firm's pro forma balance sheet for next year. Note: Do not round intermediate calculations. BALANCE SHEET Short-term debt Long-tern debt Common stock Accumulated retained earnings $ 30,500,000 26,077,300 $ 4,422,700 1,547,945 $ 2,874,755 Liabilities and Equity Total equity Total liabilities and…
ABC Corp - had sales of $375million in 2023 and you expect sales to grow at a 3% in 2024, 2% in 2025 and 1% in 2026. Given, past profitability and investment needs, you expect Earnings Before Interests and Taxes (EBIT) to be 9% of sales, increases in net working capital (NWC) requirements to be 8% of any increase in sales, and net investment (CAPEX in excess of depreciation) to be 7% of any increase in sales. The company has $35 million in cash, $7 million in debt, 15 million shares outstanding, Tax rate is 20% of EBIT and a weighted average cost of capital (WACC) of 11% . What is your estimate of the value of the stock in January 2024?
Suppose Naboo Manufacturing's sales increase 20% over the next year. Assuming that all asset accounts change proportionately to sales, what is the external financing needed?
Austin Grocers recently reported the following 2016 income statement (in millions of dollars): Sales $700 Operating costs including depreciation 500 EBIT $200 40 Interest EBT Taxes (40%) Net income. $160 64 $96 $32 564 Dividends Addition to retained earnings i For the coming year, the company is forecasting a 35% increase in sales, and it expects that its year end operating costs, including depreciation, will equal 75% of sales. Austin's tax rate, interest expense, and dividend payout ratio are all expected to remain constant. a. What is Austin's projected 2017 net income? Enter your answer in millions. For example, an answer of $13,000,000 should be entered as 13. Round your answer to two decimal places. million b. What is the expected growth rate in Austin's dividerids? Do not round your intermediate calculations. Round your answer to two decimal places.
What is the sales growth rate of this financial accounting question?

SEE MORE QUESTIONS

Recommended textbooks for you

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SEE MORE TEXTBOOKS