We need to forecast 2019 using the modified percentage of sales method to prepare for a management meeting. We expect to grow 10%, in all areas except for: Fixed assets is expected to grow $88,000 due to an expansion program already underway. The firm pays 9% interst on all of its debt. Assume the tax rate is a flat 25%. There are no plans for dividends or the sale of any additional stock next year. Make a forecast of the income statement and balance sheet. Revenue CGS GM Expenses EBIT Interest EST Tax Net Income Proforma Balance Sheet 2011 (5000) Assets Current Assets Fixed Assets Total Assets Liabilities and Equity Current Liab Debt Equity Total Liab & Equity Example Company Current & Projected Income Statements (5000) 2018 642 289 353 240 113 33 80 25 55 2018 198 552 750 87 325 338 750 2019 2019 706 318
We need to forecast 2019 using the modified percentage of sales method to prepare for a management meeting. We expect to grow 10%, in all areas except for: Fixed assets is expected to grow $88,000 due to an expansion program already underway. The firm pays 9% interst on all of its debt. Assume the tax rate is a flat 25%. There are no plans for dividends or the sale of any additional stock next year. Make a forecast of the income statement and balance sheet. Revenue CGS GM Expenses EBIT Interest EST Tax Net Income Proforma Balance Sheet 2011 (5000) Assets Current Assets Fixed Assets Total Assets Liabilities and Equity Current Liab Debt Equity Total Liab & Equity Example Company Current & Projected Income Statements (5000) 2018 642 289 353 240 113 33 80 25 55 2018 198 552 750 87 325 338 750 2019 2019 706 318
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter12: Corporate Valuation And Financial Planning
Section: Chapter Questions
Problem 3P: Smiley Corporations current sales and partial balance sheet are shown here. Sales are expected to...
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We need to forecast 2019 using the modified percentage of sales method to prepare for a
management meeting. We expect to grow 10%, in all areas except for:
Fixed assets is expected to grow $88,000 due to an expansion program already underway.
The firm pays 9% interst on all of its debt. Assume the tax rate is a flat 25%. There are no
plans for dividends or the sale any additional stock next year. Make a forecast of the
income statement and balance sheet.
16 Revenue
17 CGS
18 GM
19 Expenses
20 EBIT
21 Interest
22 EBT
23 Tax
24 Net Income
25
26
27 Proforma Balance Sheet 20x1 ($000)
28 Assets
29 Current Assets
30 Fixed Assets
31
32 Total Assets
33
34 Liabilities and Equity
35 Current Liab
36
37 Debt
38 Equity
39 Total Liab & Equity
40
41
Example Company
Current & Projected Income Statements
($000)
2018
642
289
353
240
113
33
80
25
55
2018
198
552
750
87
***
325
D
338
750
2019
2019
706
318](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F296b89e4-6d4d-4f48-9539-9189bc2c3c30%2F56689d70-9d72-4938-8529-b0ad11f2a541%2Fb80twbs_processed.png&w=3840&q=75)
Transcribed Image Text:10
11
12
13
14
15
We need to forecast 2019 using the modified percentage of sales method to prepare for a
management meeting. We expect to grow 10%, in all areas except for:
Fixed assets is expected to grow $88,000 due to an expansion program already underway.
The firm pays 9% interst on all of its debt. Assume the tax rate is a flat 25%. There are no
plans for dividends or the sale any additional stock next year. Make a forecast of the
income statement and balance sheet.
16 Revenue
17 CGS
18 GM
19 Expenses
20 EBIT
21 Interest
22 EBT
23 Tax
24 Net Income
25
26
27 Proforma Balance Sheet 20x1 ($000)
28 Assets
29 Current Assets
30 Fixed Assets
31
32 Total Assets
33
34 Liabilities and Equity
35 Current Liab
36
37 Debt
38 Equity
39 Total Liab & Equity
40
41
Example Company
Current & Projected Income Statements
($000)
2018
642
289
353
240
113
33
80
25
55
2018
198
552
750
87
***
325
D
338
750
2019
2019
706
318
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