Problem 1. You are analyzing a firm's growth plan for the year 2025. You have access to information for 2024 and forecasted information for 2025. Accounts payable Accounts receivable Cash Cost of goods sold Depreciation Interest expense Inventory Long-term debt Net fixed assets New equity raised Notes payable Sales SASA $$ SASAS EA SASS EA 2024 10,000 10,000 12,000 $$ EA 2025 18,000 16,500 $ 21,000 56,000 EA $ 87,000 19,000 8,000 15,000 SASASA $ 27,000 $ 12,000 $ 24,000 37,000 $ 51,000 68,000 102,000 0 ? 11,000 $ 15,000 100,000 EA 150,000 The tax rate is 21%, and dividends are 5% of net income.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A) Construct an income statement for each year 

B) Construct a balance sheet for each year. Make sure the balance sheets are balanced (Hint: New equity raised for the year 2025 is not given you will have to obtain it, and it will be equal to the amount needed to balance the balance sheet)

Problem 1. You are analyzing a firm's growth plan for the year 2025. You have access to
information for 2024 and forecasted information for 2025.
Accounts payable
Accounts
receivable
Cash
Cost of goods sold
Depreciation
Interest expense
Inventory
Long-term debt
Net fixed assets
New equity raised
Notes payable
Sales
SASA
$$
SASAS
EA
SASS
EA
2024
10,000
10,000
12,000
$$
EA
2025
18,000
16,500
$
21,000
56,000
EA
$
87,000
19,000
8,000
15,000
SASASA
$
27,000
$
12,000
$
24,000
37,000
$
51,000
68,000
102,000
0
?
11,000
$
15,000
100,000
EA
150,000
The tax rate is 21%, and dividends are 5% of net income.
Transcribed Image Text:Problem 1. You are analyzing a firm's growth plan for the year 2025. You have access to information for 2024 and forecasted information for 2025. Accounts payable Accounts receivable Cash Cost of goods sold Depreciation Interest expense Inventory Long-term debt Net fixed assets New equity raised Notes payable Sales SASA $$ SASAS EA SASS EA 2024 10,000 10,000 12,000 $$ EA 2025 18,000 16,500 $ 21,000 56,000 EA $ 87,000 19,000 8,000 15,000 SASASA $ 27,000 $ 12,000 $ 24,000 37,000 $ 51,000 68,000 102,000 0 ? 11,000 $ 15,000 100,000 EA 150,000 The tax rate is 21%, and dividends are 5% of net income.
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