For the following financial statements, assume that COGS is always 70% of Sales, Interest Expense is always 10% of the previous years long term debt, Depreciation is always 20% of the previous years Net Fixed Assets, and taxes are always 25% of EBT.
Fill Chart out and then answer questions
2015 | 2016 | 2017 | 2018 | |
Net Working Capital | 1000 | 1100 | 1200 | |
Net Fixed Assets | 4000 | 4700 | 6608 | |
Long Term Debt | 3000 | 3703 | 4105 | |
Total Equity | 2000 | 2625 | 3703 | |
Sales | 10000 | |||
COGS | 7700 | |||
Depreciation | 800 | 1152 | ||
EBIT | 2360 | 2298 | ||
Interest | 300 | 318 | ||
EBT | 2043 | |||
Taxes | 475 | 482 | ||
NI | 1446 | |||
Capital Expennditures | 2000 | |||
Dividends | 800 |
What is 2018 COGS?
a.7600 b. 7925 c. 8050 d. 8400
What is Return on Equity in 2016?
a. 10% b. 25% c. 33% d. 50%
What is Additional Financing Needed in 2017?
a.175 b. 350 c. 525 d.700
What are Dividends in 2017?
a. 850 b. 900 c. 950 d. 1000
NOTE: For finding additional financing required,
Additional Financing = Capital expenditure - (Last year's retained earnigs + present years retained earnings)
Reatained earnings = NI - Dividends
Return on equity = NI / shareholders equity
For the following financial statements, assume that COGS is always 70% of Sales, Interest Expense is...