Following are two years of income statements and balance sheets for the Munich Exports Corporation. A. Calculate
Question:
A. Calculate the cash build, cash burn, and net cash burn or build for Munich Exports in 2010.
B. Assume that 2011 will be a repeat of 2010. If your answer in Part A resulted in a net cash burn position, calculate the net cash burn monthly rate and indicate the number of months remaining until out of cash. If your answer in Part A resulted in a net cash build position, calculate the net cash build monthly rate and indicate the expected cash balance at the end of2011.
Transcribed Image Text:
MUNICH EXPORTS CORPORATION BALANCE SHEET 2009 2010 Cash Accounts receivable Inventories S 50,000 S 50,000 200,000 450,000 700,000 300,000 300,000 570,000 920,000 380,000 Total current assets Total assets BALANCE SHEET Fixed assets, net 2009 2010 Accounts payable Accruals Bank loan Total current liabilities Long-term debt Common stock ($0.05 par) Additional paid-in-capital Retained eamings 130,000 50,000 90,000 270,000 400,000 50,000 200,000 80,000 S 180,000 70,000 90,000 340,000 550,000 50,000 200,000 1 60,000 Total liabilities and equity 2009 2010 Income Statement Net sales Cost of goods sold $1,300,000 780,000 520,000 130,000 150,000 40,000 200,000 45,000 55,000 62,000 93,000 S1,600,000 960,000 640,000 160,000 150,000 55,000 275,000 55,000 220,000 88,000 132,000 Gross profit Marketing General and administrative Depreciation EBIT Eamings before taxes Net income Interest Income taxes (4096 rate
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Related Book For
Entrepreneurial Finance
ISBN: 978-0538478151
4th edition
Authors: J . chris leach, Ronald w. melicher
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