Question:Income Statement
Year
2019
2020
Net Revenue
140,000
- Cost of Goods Sold
70,000
- Depreciation...
Question
Income Statement
Year
2019
2020
Net Revenue
140,000
- Cost of Goods Sold
70,000
- Depreciation...
Income Statement
Year
2019
2020
Net Revenue
140,000
- Cost of Goods Sold
70,000
- Depreciation Expense
9,000
EBIT
61,000
- Interest Expense
10,500
Income Before Taxes
50,500
Tax Expense
10,605
Net Income
2019 Dividend
39,895
9,974
Balance Sheet
Year (end of)
2019
2020
2019
2020
Assets
Liabilities
Current Assets
Current Liabilities
Cash and
Equivalents
10,000
Accounts
Payable
21,000
Accounts
Receivable
25,000
Long-term Debt
95,000
Inventory
12,000
Total Liabilities
116,000
Fixed Assets, Net
165,000
Stockholders' Equity
Total Assets
212,000
Common Stock
44,000
Retained Earnings
52,000
Total Stockholders Equity
96,000
Sales will grow by 10% in 2020. All costs, assets, and
current liabilities vary directly with sales. Interest
Exp., Common Stock, Tax Rate and Div. payout ratio are constant.
L-T Debt=Plug number.
1A. Prepare a 2020 forecast. What is the 2020
Dividend and Addition to Retained Earnings?
1B. If a bank will allow Atlantic to borrow 2.5 times prior year
EBITDA, how much total Long-Term Debt would the bank allow in
2020?
1C. What is Atlantic’s Days Accounts Payables in
2020? By how many Days would A/P need to increase to
balance the Balance Sheet if Long-Term Debt = $70,000?
LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 2020 2019 Gross sales $15,000 $19,000 1,000 $18,000 12,000 $ 6,000 Sales returns and allowances 100 $14,900 9,000 Net sales Cost of merchandise (goods) sold Gross profit Operating expenses: Depreciation Selling and administrative $ 5,900 $ 2,200 550 360 700 600 2,000 Research Miscellaneous Total operating expenses Income before interest and taxes Interest expense Income before taxes Provision for taxes 500 300 $ 3,400 $ 2,500 $3,810...
LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 2019 2020 Gross sales $19,000 1,000 $18,000 12,000 $6,000 $15,000 100 Sales returns and allowances Net sales Cost of merchandise (goods) sold Gross profit Operating expenses: Depreciation Selling and administrative Research $14,900 9,000 $5,900 $ $ 2,000 500 600 700 2,200 550 Miscellaneous Total operating expenses Income before interest and taxes Interest expense Income before taxes Provision for taxes 360 300 $3,810 $ 2,190 $3,400 2,500 560...
The 2019 financial statements for Growth Industries are presented below. INCOME STATEMENT, 2019 Sales Costs EBIT Interest expense Taxable income Taxes (at 21%) Net income Dividends $17,380 Addition to retained earnings $17,380 $210,000 155,000 $ 55,000 11,000 $ 44,000 9,240 $ 34,760 Assets Current assets Cash Accounts receivable Inventories Total current assets Net plant and equipment $ 11,000 $ 11,000 110,000 BALANCE SHEET, YEAR-END, 2019 Liabilities Current liabilities $ 4,000 Accounts payable 9,000 Total current liabilities 27,000 Long-term debt $...
The 2021 Income statement of Adrian Express reports sales of $13,500,000, cost of goods sold of $7.696.000, and net Income of $1,520,000. Balance sheet Information is provided in the following table. ADRIAN EXPRESS Balance Sheets December 31, 2021 and 2820 2e21 2e2e Assets Current assets: Cash Accounts receivable Inventory Long-term assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Common stock Retained earnings Total liabilities and stockholders' equity $ 529.988 1.248. 1,648,808 4,728,889 $8,120,000 $ 688.888 9 20,00...
SimWrite Income Statement SimWrite Balance Sheet Beg Balance Sales Revenue 950,000 Cost Of Goods Sold 500,000 Operating Expense 190,000 Promotion Expenses 75,000 R & D Expense 25,000 Operating Income 160,000 Interest Expense & Other 36,000 Taxes 37,200 Net Income 86,800 Assets Balance Cash & Equivalents 50,000 Accounts Receivabl200,000 Inventories 210,000 Other Current Assets 460,000 Net Plant, Property 800,000 Other LT Assets Total Assets 1,260,000 Short Term debt 180,000 Long Term Debt 450,000 Owner's Equity 630,000 Retained Earnings Total Liabilities &...
Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income (expense) Income tax expense Net income Income Statement Data for Year $66,800 $413,000 46,000 308,000 14,400 77,000 680 1,800 (90) (380) 1,400 6,900 $4,230 $18,920 Current assets Noncurrent assets Total assets Current liabilities Long-term debt Total stockholders' equity Total liabilities and stockholders' equity Balance Sheet Data (End of Year) $18,000 $47,000 27,500 121,000 $45,500 $168,000 $11,000 $54,000 16,800 45,000 17,700 69,000 $45,500 $168,000 Total assets Total...