Homework Help is Here – Start Your Trial Now!
Business
Finance
"Use Table 1 and the following information on Company X to perform a pro-forma financial modeling using a percentage sales method, and answers the next questions. Note: When applying the percentage sales method, you should assume that the 2024 percentage values with respect to sales of the (i) costs except depreciation, (ii) depreciation, (iii) cash and equivalents, (iv) accounts receivable, (v) inventories, (vi) property, plant and equipment, and (vi) accounts payable will remain equal to those percentages of 2023. Sales in 2024 are expected to grow at a rate of 20%, with respect to the values of 2023. Assume also that the total values in 2024 of interest expense and debt will not change from its 2023 values; income tax will remain at 30% of the Pretax Income; and that Company X initially plans to payout 35% of its net income to its shareholders. Table 1 Income Statement, 2023 Sales 2,000,000 Balance Sheet, 2023 Assets Costs except Depr. -1,250,000 Cash and Equivalents 1,000,000 EBITDA 750,000 Accounts Receivable 800,000 Depreciation -10,500 Inventories 165,000 EBIT 739,500 Total Current Assets 1,965,000 Interest Expense (net) -250,000 Property Plant & Equipment 200,000 Pretax Income 489,500 Total Assets 2,165,000 Income Tax -146,850 Liabilities &Equity Net Income 342,650 Accounts Payable 400,000 Debt 100,000 Total Liabilities 500,000 Stockholders' Equity 1,665,000 Total Liabilities and Equity 2,165,000

"Use Table 1 and the following information on Company X to perform a pro-forma financial modeling using a percentage sales method, and answers the next questions. Note: When applying the percentage sales method, you should assume that the 2024 percentage values with respect to sales of the (i) costs except depreciation, (ii) depreciation, (iii) cash and equivalents, (iv) accounts receivable, (v) inventories, (vi) property, plant and equipment, and (vi) accounts payable will remain equal to those percentages of 2023. Sales in 2024 are expected to grow at a rate of 20%, with respect to the values of 2023. Assume also that the total values in 2024 of interest expense and debt will not change from its 2023 values; income tax will remain at 30% of the Pretax Income; and that Company X initially plans to payout 35% of its net income to its shareholders. Table 1 Income Statement, 2023 Sales 2,000,000 Balance Sheet, 2023 Assets Costs except Depr. -1,250,000 Cash and Equivalents 1,000,000 EBITDA 750,000 Accounts Receivable 800,000 Depreciation -10,500 Inventories 165,000 EBIT 739,500 Total Current Assets 1,965,000 Interest Expense (net) -250,000 Property Plant & Equipment 200,000 Pretax Income 489,500 Total Assets 2,165,000 Income Tax -146,850 Liabilities &Equity Net Income 342,650 Accounts Payable 400,000 Debt 100,000 Total Liabilities 500,000 Stockholders' Equity 1,665,000 Total Liabilities and Equity 2,165,000

Essentials Of Investments
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
Problem 1PS
See similar textbooks
icon
Related questions
Question

Use Table 1 and the following information on Company X to perform a pro-forma financial modeling using a percentage sales method, and answers the next questions. Note: When applying the percentage sales method, you should assume that the 2024 percentage values with respect to sales of the (i) costs except depreciation, (ii) depreciation, (iii) cash and equivalents, (iv) accounts receivable, (v) inventories, (vi) property, plant and equipment, and (vi) accounts payable will remain equal to those percentages of 2023. Sales in 2024 are expected to grow at a rate of 20%, with respect to the values of 2023. Assume also that the total values in 2024 of interest expense and debt will not change from its 2023 values; income tax will remain at 30% of the Pretax Income; and that Company X initially plans to payout 35% of its net income to its shareholders.

1. What is the forecasted value of sales for 2024?

2. What is the forecasted value of EBITDA for 2024? 

3. What is the forecasted value of PreTax Income for 2024?

4. What is the forecasted value of Net Income for 2024?

5. Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Cash and Equivalents for 2024?

6. "Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Total Assets for 2024?

7. Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Total Liabilities for 2024? 

8. Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Shareholder's Equity for 2024?

9. What is the estimate for Net New Financing for 2024? Note: Make sure you use the correct positive or negative sign.

"Use Table 1 and the following information on Company X to perform a pro-forma financial modeling using a percentage sales method, and answers the next questions. Note: When applying the percentage sales method, you should assume that the 2024 percentage values with respect to sales of the (i) costs except depreciation, (ii) depreciation, (iii) cash and equivalents, (iv) accounts receivable, (v) inventories, (vi) property, plant and equipment, and (vi) accounts payable will remain equal to those percentages of 2023. Sales in 2024 are expected to grow at a rate of 20%, with respect to the values of 2023. Assume also that the total values in 2024 of interest expense and debt will not change from its 2023 values; income tax will remain at 30% of the Pretax Income; and that Company X initially plans to payout 35% of its net income to its shareholders. Table 1 Income Statement, 2023 Sales 2,000,000 Balance Sheet, 2023 Assets Costs except Depr. -1,250,000 Cash and Equivalents 1,000,000 EBITDA 750,000 Accounts Receivable 800,000 Depreciation -10,500 Inventories 165,000 EBIT 739,500 Total Current Assets 1,965,000 Interest Expense (net) -250,000 Property Plant & Equipment 200,000 Pretax Income 489,500 Total Assets 2,165,000 Income Tax -146,850 Liabilities &Equity Net Income 342,650 Accounts Payable 400,000 Debt 100,000 Total Liabilities 500,000 Stockholders' Equity 1,665,000 Total Liabilities and Equity 2,165,000
Transcribed Image Text:"Use Table 1 and the following information on Company X to perform a pro-forma financial modeling using a percentage sales method, and answers the next questions. Note: When applying the percentage sales method, you should assume that the 2024 percentage values with respect to sales of the (i) costs except depreciation, (ii) depreciation, (iii) cash and equivalents, (iv) accounts receivable, (v) inventories, (vi) property, plant and equipment, and (vi) accounts payable will remain equal to those percentages of 2023. Sales in 2024 are expected to grow at a rate of 20%, with respect to the values of 2023. Assume also that the total values in 2024 of interest expense and debt will not change from its 2023 values; income tax will remain at 30% of the Pretax Income; and that Company X initially plans to payout 35% of its net income to its shareholders. Table 1 Income Statement, 2023 Sales 2,000,000 Balance Sheet, 2023 Assets Costs except Depr. -1,250,000 Cash and Equivalents 1,000,000 EBITDA 750,000 Accounts Receivable 800,000 Depreciation -10,500 Inventories 165,000 EBIT 739,500 Total Current Assets 1,965,000 Interest Expense (net) -250,000 Property Plant & Equipment 200,000 Pretax Income 489,500 Total Assets 2,165,000 Income Tax -146,850 Liabilities &Equity Net Income 342,650 Accounts Payable 400,000 Debt 100,000 Total Liabilities 500,000 Stockholders' Equity 1,665,000 Total Liabilities and Equity 2,165,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS