Question

please, solve in excel with descriptions thank you!

Planning for Growth at S&S Air After Chris completed the ratio analysis for S&S Air (see Chapter 3), Mark and Todd approached him about planning for next year's sales. The company had historically used little planning for investment needs. As a result, the company experienced some challenging times because of cash flow problems. The lack of planning resulted in missed sales, as well as periods when Mark and Todd were unable to draw salaries. To this end, thly would like Chris to prepare a financial plan for the next year so the company can begin to address any outside investment requirements. The income statement and balance sheet are shown here: S&S AIR, INC. 2014 Income Statement Sales Cost of goods sold Other expenses Depreciation EBIT Interest Taxable income Taxes (40%) Net income Dividends $ 610,000 Add to retained earnings 1,419,766 $40,259,230 29,336,446 5,105,100 1,804,220 $ 4,013,464 630,520 $ 3,382,944 1,353,178 $ 2,029,766 SAS AIR, INC 2014 n d Equity La Current Labs Accounts payable Cau $ 20.005 TiO AO ? S @w x

Answer 1

Calculation of S&S Air, INC External financing needs (EFN)
Particulars	Amount($)	Amount($)
	2014	2015
Sales	40259230	45090338
Cost of goods sold	29336446	32856820
Other expenses	5105100	5717712
Depreciation	1804220	2313245	22723430*0.1018
EBIT	4013464	4202561
Interest	630520	630520
Taxable income	3382944	3572041
Tax@40%	1353177.6	1428816
Profit after tax	2029766.4	2143225
Total assets
Cash	456435	511207.2
Accounts receivable	733125	821100
Inventory	1073180	1201962
	2262740	2534269
Fixed assets	17723430	22723430
	19986170	25257699
Current liabilities	3050355	3416398
Long term debt	5500000	5500000
Equity	11435815	13579040
EFN		2762262	The External investment