Migatus Enterprise is one of the top retail companies in the Philippines. Mr. Rene Tanasas, its...
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Migatus Enterprise is one of the top retail companies in the Philippines. Mr. Rene Tanasas, its Chief Executive Officer (CEO), wanted to establish a simple income statement model that can forecast its company's income in the next five (5) years. He wanted the model to do some cost analysis which includes knowing the average, weighted average, and median of the costs for each year. Mr. Tanasas knew that aside from being an auditor, you are also a financial modeler; thus, he approached you to create a simple income statement model of its company. He gave you the following information for the past two (2) years of its operations: Revenues Less: Cost of Goods Sold (COGS) Gross Profit Income Statement Less: General, Selling, and Administrative Expenses Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) Less: Depreciation Expense Interest Earnings Before Taxes (EBT) Less: Taxes Net Income 20X1 P300,000 120,000 180,000 20,000 160,000 12,000 3,500 144,500 43,350 P101,150 20X2 P400,000 275,000 125,000 21,200 103,800 12,000 3,500 88,300 26,490 P61,810 Based on the above data, Mr. Tanasas came up with the following assumptions for the next five (5) years: The sales growth will remain constant. The percentage of COGS against sales is equal to the average percentage of the above COGSS. The general and administrative expenses will be P20,000 per year. The interest will increase by P6,500, and the tax rate will decrease to 20%. The depreciation expense is equal to 4% of sales. The amount of standard total operating expenses of the company per year is 400,000. The company has the following weight for its costs: Cost of Goods Sold, 55%; . o General, Selling, and Administrative Expenses, 20%; 0 Depreciation Expenses, 10%; O Interest Expenses, 5%; and o Taxes, 10% Required: 1. Create a simple income statement model for Migatsu Enterprise using Microsoft (MS) Excel. You may refer to your laboratory exercise in Week 1 for the template. Save your output as "SURNAME_FMDTP1" and place it on the network drive. Migatus Enterprise is one of the top retail companies in the Philippines. Mr. Rene Tanasas, its Chief Executive Officer (CEO), wanted to establish a simple income statement model that can forecast its company's income in the next five (5) years. He wanted the model to do some cost analysis which includes knowing the average, weighted average, and median of the costs for each year. Mr. Tanasas knew that aside from being an auditor, you are also a financial modeler; thus, he approached you to create a simple income statement model of its company. He gave you the following information for the past two (2) years of its operations: Revenues Less: Cost of Goods Sold (COGS) Gross Profit Income Statement Less: General, Selling, and Administrative Expenses Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) Less: Depreciation Expense Interest Earnings Before Taxes (EBT) Less: Taxes Net Income 20X1 P300,000 120,000 180,000 20,000 160,000 12,000 3,500 144,500 43,350 P101,150 20X2 P400,000 275,000 125,000 21,200 103,800 12,000 3,500 88,300 26,490 P61,810 Based on the above data, Mr. Tanasas came up with the following assumptions for the next five (5) years: The sales growth will remain constant. The percentage of COGS against sales is equal to the average percentage of the above COGSS. The general and administrative expenses will be P20,000 per year. The interest will increase by P6,500, and the tax rate will decrease to 20%. The depreciation expense is equal to 4% of sales. The amount of standard total operating expenses of the company per year is 400,000. The company has the following weight for its costs: Cost of Goods Sold, 55%; . o General, Selling, and Administrative Expenses, 20%; 0 Depreciation Expenses, 10%; O Interest Expenses, 5%; and o Taxes, 10% Required: 1. Create a simple income statement model for Migatsu Enterprise using Microsoft (MS) Excel. You may refer to your laboratory exercise in Week 1 for the template. Save your output as "SURNAME_FMDTP1" and place it on the network drive.
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create a simple income statement model for Migatus Enterprise using Microsoft Excel Heres how you can do it Step 1 Create a new Excel sheet and name i... View the full answer
Related Book For
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
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