Question: 2) For the following problems, use Exhibit A. For exhibit A, the amount of sales depends on the production volume shown below. The dividend policy

2) For the following problems, use Exhibit A. For exhibit A, the amount of sales depends on the production volume shown below. The dividend policy is to pay 28% in dividends. Construct the Production volume table based on your student ID number as per the instructions shown below.

1. What will be the depreciation for 2023?

2. What will be the cash and equivalents for 2020?

3. What will be the accounts payable for 2021?

4. Imagine that the corporation decides to use debt for any external financing, what would be the amount of debt in 2020? (If no net new financing is needed, then answer with a negative number)

(D in the market shares is =0 so D=0)

2) For the following problems, use Exhibit A. For exhibit A, the amount of sales depends on the production volume shown below. The dividend

Integrated Financial Statements Exhibit A: Pro Forma Financial Statements 2019 2020 2021 2022 2023 2024 Income Statement 1 Sales Revenue $ 45,000.00 2 less: Cost of Goods Sold $ 36,900.00 3 EBITDA $ 8,100.00 4 less: Depreciation Expense $ 4,500.00 5 EBIT 3,600.00 6 less: Interest and Other Expenses $ 800.00 7 PRE-TAX INCOME $ 2,800.00 8 less: Income Tax $ 1,120.00 9 NET INCOME $ $ 1,680.00 $ Production Volume (000s units) 1 Market Size 2 Market Share 3 Production Volume (Market Size X Market Share) 4 Average Sales Price 10,000.00 $ 10,500.00 10.00% [10+(D/2)+2]% 1000.00 $45.00 $45.90 $ 11,025.00 [10+2*(D/2)+4]% $ 11,576.25 $ 12,155.06 [10+3*(D/2)+6]% [10+4*(D/2)+8]% $ 12,762.82 [10+5*(D/2)+10]% $46.82 $47.75 $48.71 $49.68 Integrated Financial Statements Exhibit A: Pro Forma Financial Statements 2019 2020 2021 2022 2023 2024 Balance Sheet 1 ASSETS 2 Cash and Equivalents $ 7,200.00 3 Accounts Receivable $ 6,300.00 4 Inventory $ 7,650.00 5 CURRENT ASSETS $ 21,150.00 6 Property, Plant and Equipment 29.700.00 7 TOTAL ASSETS $ 50,850.00 8 LIABILITIES AND EQUITY 9 Accounts Payable $ 10,350.00 10 CURRENT LIABILITIES $ 10,350.00 11 Long-Term Debt $ 8,000.00 12 TOTAL LIABILITIES $ 18,350.00 13 STOCKSHOLDER'S EQUITY $ 32,500.00 14 Retained Earnings $ 15 TOTAL EQUITY $ 32,500.00 16 TOTAL LIABILITIES AND EQUITY $ 50,850.00 Integrated Financial Statements Exhibit A: Pro Forma Financial Statements 2019 2020 2021 2022 2023 2024 Income Statement 1 Sales Revenue $ 45,000.00 2 less: Cost of Goods Sold $ 36,900.00 3 EBITDA $ 8,100.00 4 less: Depreciation Expense $ 4,500.00 5 EBIT 3,600.00 6 less: Interest and Other Expenses $ 800.00 7 PRE-TAX INCOME $ 2,800.00 8 less: Income Tax $ 1,120.00 9 NET INCOME $ $ 1,680.00 $ Production Volume (000s units) 1 Market Size 2 Market Share 3 Production Volume (Market Size X Market Share) 4 Average Sales Price 10,000.00 $ 10,500.00 10.00% [10+(D/2)+2]% 1000.00 $45.00 $45.90 $ 11,025.00 [10+2*(D/2)+4]% $ 11,576.25 $ 12,155.06 [10+3*(D/2)+6]% [10+4*(D/2)+8]% $ 12,762.82 [10+5*(D/2)+10]% $46.82 $47.75 $48.71 $49.68 Integrated Financial Statements Exhibit A: Pro Forma Financial Statements 2019 2020 2021 2022 2023 2024 Balance Sheet 1 ASSETS 2 Cash and Equivalents $ 7,200.00 3 Accounts Receivable $ 6,300.00 4 Inventory $ 7,650.00 5 CURRENT ASSETS $ 21,150.00 6 Property, Plant and Equipment 29.700.00 7 TOTAL ASSETS $ 50,850.00 8 LIABILITIES AND EQUITY 9 Accounts Payable $ 10,350.00 10 CURRENT LIABILITIES $ 10,350.00 11 Long-Term Debt $ 8,000.00 12 TOTAL LIABILITIES $ 18,350.00 13 STOCKSHOLDER'S EQUITY $ 32,500.00 14 Retained Earnings $ 15 TOTAL EQUITY $ 32,500.00 16 TOTAL LIABILITIES AND EQUITY $ 50,850.00

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To solve the problems using the given Exhibit A here are the steps we need to follow 1 Depreciation for 2023 From the Pro Forma Financial Statements p... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

let D= 8 let C= 1 2) For the following problems, use Exhibit A. For exhibit A, the amount of sales depends on the production volume shown below. The dividend policy is to pay (21+D+C]% in dividends....

INSTRUCTIONS: For each of the problems you will need to use your Student ID number. The last four digits of your ID number are to be used as A, B, C and D. For example, if your student ID is...

2. For the following problems, use Exhibit A. For exhibit A, the amount of sales depends on the production volume shown below. The dividend policy is to pay 28% in dividends. Construct the Production...

2) For the following problems, use Exhibit A. For exhibit A, the amount of sales depends on the production volume shown below. The dividend policy is to pay 32% in dividends. Construct the Production...

2) For the following problems, use Exhibit A. For exhibit A, the amount of sales depends on the production volume shown below. The dividend policy is to pay 25% in dividends. Construct the Production...

2) For the following problems, use Exhibit A. For exhibit A, the amount of sales depends on the production volume shown below. The dividend policy is to pay [21+D+C]% in dividends. Construct the...

2) For the following problems, use Exhibit A. For exhibit A, the amount of sales depends on the production volume shown below. The dividend policy is to pay 24% in dividends. A. What will be the...

The saponification of simple {fill_regular} leads to the formation of soap.

Why do leaders of less developed countries often run very large deficits and print entirely too much money creating excessive inflation, even though they are aware of the consequences of their...

8. (LO3) Companies pay rating agencies such as DBRS to rate their bonds, and the costs can be substantial. However, companies are not required to have their bonds rated in the first place; doing so...

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the companys costs: Fixed Cost per...