How do calculate interest payments on debt? 1 Instructions: Fill out the empty cells in the table.
Fantastic news! We've Found the answer you've been seeking!
Question:
How do calculate interest payments on debt?
Transcribed Image Text:
1 Instructions: Fill out the empty cells in the table. Follow the formulas in row H. 2 3 4 Sales growth 5 Current assets/Sales BASIC TEMPLATE PRO FORMA MODEL 10% 35% 20% 70% 50% 10% <-Straight line 6 Current liabilities/Sales 7 Net fixed assets/Sales 8 Costs of goods sold/Sales 9 Depreciation rate 10 Interest rate on debt 11 Interest paid on cash & marketable securities 12 Tax rate 13 Dividend payout ratio 14 15 Year 16 Income statement 17 Sales 18 Costs of goods sold 19 Interest payments on debt 12.00% 5.00% 34% 60% 0 1,000 1 1,100 550 2 1,210 605 3 1,331 666 4 1,464 732 5 1,611 805 (use cogs formula) $B$8 AVERAGE(C36 036) for C C 1 Instructions: Fill out the empty cells in the table. Follow the formulas in row H. 2 3 4 Sales growth 5 Current assets/Sales BASIC TEMPLATE PRO FORMA MODEL 10% 35% 20% 70% 50% 10% <-Straight line 6 Current liabilities/Sales 7 Net fixed assets/Sales 8 Costs of goods sold/Sales 9 Depreciation rate 10 Interest rate on debt 11 Interest paid on cash & marketable securities 12 Tax rate 13 Dividend payout ratio 14 15 Year 16 Income statement 17 Sales 18 Costs of goods sold 19 Interest payments on debt 12.00% 5.00% 34% 60% 0 1,000 1 1,100 550 2 1,210 605 3 1,331 666 4 1,464 732 5 1,611 805 (use cogs formula) $B$8 AVERAGE(C36 036) for C C
Expert Answer:
Answer rating: 100% (QA)
First of all in the question we will assume that there is no long term debt of th... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these finance questions
-
Calculate the debt ratio, times interest earned ratio, and cash coverage ratio for 2010 and 2011 for Tyler Toys. Should any of these ratios or the change in a ratio warrant concern for the managers...
-
How do you calculate forward risk-free interest rate?
-
How is interest on long-term debt accounted for in the debt service fund?
-
Secondary xylem and phloem in dicot stem are produced by (a) Phellogen (b) Apical meristems (c) Axillary meristems (d) Vascular cambium
-
AAA Life Insurance Companys (ALIC) most popular life insurance policy is P20Aa permanent, 20-year life annuity policy. This policy sells in $10,000 increments depending on the policyholders needs and...
-
Identify the fallacies committed in the following dialogue. You should be able to find at least one case of each fallacy presented in this section. Food for Thought "Let's hit the produce section...
-
Which of the following items could cause the recognition of accrued liabilities? (a) Sales, interest expense, rent. (b) Sales, taxes, interest income. (c) Salaries, rent, insurance. (d) Salaries,...
-
Yogi Berra, former New York Yankee catcher, said, You can observe a lot just by watching. How does this fit in with the definition of scientific observation?
-
Name the financial statement where each of the following will appear: (IS) Income Statement; (BS) Balance Sheet; (SCF) Statement of Cash Flows; (N) None. a. Book value of equipment purchased five...
-
On October 1, 2016, Culver Corp. issued $936,000, 8%, 10-year bonds at face value. The bonds were dated October 1, 2016, and pay interest annually on October 1. Financial statements are prepared...
-
Read the Organizational Theory in Action case Practicing Organizational Theory: Growing Pains". How aspect of family and the institution of marriage have changed over time? Why Married couples have...
-
The consultant for the case on the capital structure for Trans Quebec Maritime Pipeline estimated an empirical equation, see the table below, relating Canadian public utilities' equity ratios to a...
-
Why do companies consolidate their shares? To make the shares more affordable for individual investors. To avoid a possible delisting due to low share price. To increase the total dollar value of...
-
What is the main concept of green accounting? what is Internalization of external environmental cost .
-
What is the estimated unit price being used for routine physical exams as shown in the IGCE, which is the basis for any adjustment to the price.?
-
Paula has the following values of trading stock on hand as at 30 June 2022. Assuming she wishes to legally minimise her assessable income which values should she use Cost using LIFO method of...
-
Borchardt Corporation has provided the following data on operations for the past month. Direct materials $29,000 Direct labor $ 58,000 Manufacturing overhead applied to work in process $82,000...
-
Q1) What is the a3 Value Q2) What is the a7 Value Q3) What is the a4 Value Q4) What is the b3 Value Q5) What is the b2 Value Q6) What is the sign of 2nd constraint? A pastry chef at a bakery wants to...
-
Frank Willingham has the following transactions during the year: Sale of office equipment on March 15 that cost $20,000 when purchased on July 1, 2010. Frank has claimed $5,000 in depreciation and...
-
In 2012, Michael has net short-term capital losses of $2,000, a net long-term capital loss of $45,000, and other ordinary taxable income of $45,000. a. Calculate the amount of Michael's deduction for...
-
Ken paid the following amounts for interest during 2012: Qualified interest on home mortgage...........................................$4,700 Auto loan...
-
Consider a charged relativistic particle of charge \(q\) and mass \(m\) moving in a cylindrically symmetric magnetic field with \(\mathrm{B}^{\varphi}=0\). (a) Show that this general setup can be...
-
A magnetic monopole is a particle that casts out a radial magnetic field satisfying \(abla \cdot \mathbf{B}=4 \pi q_{m} \delta(\mathbf{r})\) where \(q_{m}\) is the magnetic charge of the monopole. A...
-
For the previous problem, find the angular speed by which the particle spins about the magnetic field in terms of the radius of the circular orbit \(ho\) and other constants in the problem. Data from...
Study smarter with the SolutionInn App