Fuzzy Button Clothing Company | ||||||
Income statement for Year ending December 31 | ||||||
Year 1 | Year 2 (Forecasted) | Let Year2 sales = x, then | ||||
Net Sales | 15000000 | 16918128 | x-0.75x-600000=3629532 | |||
Less: Operating costs (75% of sales) | 11250000 | 12688596 | 0.25x=4229532 => x=16918128 | |||
Less: Dep and amort. Expenses | 600000 | 600000 | ||||
Operating Income/EBIT | 3150000 | 3629532 | ||||
Less: Interest expense | 315000 | 315000 | ||||
Pre-tax income/EBT | 2835000 | 3314532 | ||||
Less: Taxes 40% | 1134000 | 1325813 | ||||
Earnings After taxes | 1701000 | 1988719 | ||||
Less: Preferred Stock Dividends | 150000 | 150000 | ||||
Earnings available to common shareholders | 1551000 | 1838719 | ||||
Less:Common Stock dividends | 425250 | 425250 | ||||
Contribution to retained earnings | 1125750 | 1413469 |
1) Preferred shares outstanding 10000, dividend per PS = 150000/10000 = $15/ps | |||||||
2)Common Shares outstanding 200000, change in EPS, Year 1 = 1551000/200000 = $7.76 to Year 2 = 1838719/200000 = $9.19. | |||||||
3) EBITDA in Year 1 = 3150000 + 600000 = 3750000, in Year 2 = 3629532 + 600000 = 4229532 | |||||||
4) No, It is NOT to say----, because income statement do not show cash flow, as non-cash item, depreciation and | |||||||
amortisation is a part of Income statement. |
ear 2 income statement data for Blue Hamster, then answer the questions that follow. Be sure...
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