A partial financial plan for Blatt Inc. is shown below. Blatt pays 10% interest on all...
A partial financial plan for Blatt Inc. is shown below. Blatt
pays 10% interest on all of its debt and is subject to a total
effective tax rate of 50%
| Income Statement | Balance Sheet | |||
|
Next Year |
This year |
Next year |
||
| EBIT |
$300 |
Assets |
$600 |
$900 |
| Interest (10%) |
____ |
Current | ||
| EBT | Liabilities |
$100 |
$200 |
|
| Tax (50%) |
____ |
Debt |
200 |
|
| Net income | Equity |
300 |
____ |
|
| Total |
$600 |
$900 |
||
Complete the forecast developing consistent debt and interest figures for next year.
Homework Answers
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A partial financial plan for Blatt Inc. is shown below. Blatt
pays 10% interest on all...
Problem 4-3 Lap Dogs Inc. is planning for next year and has the summarized results given...
Problem 4-3 Lap Dogs Inc. is planning for next year and has the summarized results given below. The firm pays interest of 12% on all borrowing and is subject to an overall tax rate of 36%. It paid interest of $20,000 this year and plans a $70,000 dividend next year. Complete Lap Dog's forecast of next year's financial statements. Enter your answers in thousands. For example, an answer of $12 thousands should be entered as 12, not 12,000. Enter all...
Problem 4-3 Lap Dogs Inc. is planning for next year and has the summarized results given...
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b) What is the implied level of assets at the end of 2016?
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cash will
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d) If Drake is unwilling to issue any new shares to support the
growth, what will be
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Calculate the Dupont equation for both years shown, 2012
and 2013.
Prepare a source and use statement for
this company. What was the total use of funds?
a- 480
b- 450
c- 510
d- 470
e- None of the above
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a) Discuss the process of
preparing a financial plan.
b) What is the implied level of assets at the end of 2016?
c) If the company pays out 50% of net income as dividends, how much
cash will
Drake need to raise in the capital markets in 2016?
d) If Drake is unwilling to issue any new shares to support the
growth, what will be
the debt ratio at the end of 2016?
The following table summarizes the 2015 income...
Calculate the Dupont equation for both years shown, 2012
and 2013.
Prepare a source and use statement for
this company. What was the total use of funds?
a- 480
b- 450
c- 510
d- 470
e- None of the above
Income Statement Balance Sheet 2013 2012 2013 2012 3000 1800 Sales 140 100 as 2250 1350 COGS 200 440 Accts Rec 750 450 Gross Margin 220 120 Inventory 600 270 Oper Exp 800 420 Total Current Assets 50 30 Depr...
Financing Deficit Garlington Technologies Inc.'s 2018 financial statements are shown below: Balance Sheet as of December 31, 2018 $360,000 156,000 Cash Receivables Inventories Total current assets Fixed assets $ 180,000 Accounts payable 360,000 Notes payable 720,000 Line of credit $1,260,000 Accruals 1,440,000 Total current Kabilities Common stock Retained earnings $2,700,000 Total liabilities and equity 180.000 $ 696.000 1,800,000 204,000 Total assets $2.700.000 Income Statement for December 31, 2018 Sales Operating costs EBIT Interest Pre-tax earings Taxes (40%) Net income Dividends...
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