How we do the projection of percent of sales for those years (in yellow) MINOSO CORPORATION Financial

How we do the projection of percent of sales for those years (in yellow)

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MINOSO CORPORATION Financial Statement Projections Note: Projections Assume New 10% LTD Financing Ch 9, Prob 6 Income Statements Actual Percent Forecast Percent Forecast Percent 2013 of Sales 2014 of Sales Net Sales $15,000 100.0% $18,000 2015 $21,600 of Sales Forecast Percent 2016 of Sales $25,920 Operating Expenses ($13,000) ($15,600) ($18,720) ($22,464) Interest ($400) ($410) ($519) ($650) EBT $1,600 $1,990 $2,361 $2,806 Taxes (40%) ($640) ($796) ($945) ($1,123) Net Income (NI) $960 $1,194 $1,417 $1,684 Cash Dividends (40% of NI) ($384) ($478) ($567) ($674) Added Retained Earnings $576 $716 $850 $1,010 Balance Sheets $2,013 $2,014 $2,015 $2,016 Required Cash $1,000 $1,200 $1,440 $1,728 Surplus Cash $0 $0 $0 $0 Accounts Rec $2,000 $2,400 $2,880 $3,456 Inventories $2,200 $2,640 $3,168 $3,802 Total Current Assets $5,200 $6,240 $7,488 $8,986 Fixed Assets, Net $6,800 $8,160 $9,792 $11,750 Total Assets $12,000 $14,400 $17,280 $20,736 Accounts Pay $1,600 $1,920 $2,304 $2,765 Bank Loan $1,800 $1,800 $1,800 $1,800 Acc Liab $1,200 $1,440 $1,728 $2,074 Total Current Liab $4,600 $5,160 $5,832 $6,638 New LTD Borrowing (AFN) $0 $1,124 $2,481 $4,121 Long-Term Debt (Old Loan) $2,200 $2,200 $2,200 $2,200 Common Stock $2,400 $2,400 $2,400 $2,400 Retained Earnings $2,800 $3,516 $4,367 $5,377 Total liab & Equity $12,000 $14,400.00 $17,280 $20,736 Selected Ratios: (CL+AFN+LTD)/Total Assets 56.7% 58.9% 60.8% 62.5% (LTD + AFN)/Total Equity 42.3% 56.2% 69.2% 81.3% Net Income/Net Sales 6.4% 6.6% 6.6% 6.5% Net Income/Common Equity 18.5% 20.2% 20.9% 21.7% 0.08 MINOSO CORPORATION Financial Statement Projections Note: Projections Assume New 10% LTD Financing Ch 9, Prob 6 Income Statements Actual Percent Forecast Percent Forecast Percent 2013 of Sales 2014 of Sales Net Sales $15,000 100.0% $18,000 2015 $21,600 of Sales Forecast Percent 2016 of Sales $25,920 Operating Expenses ($13,000) ($15,600) ($18,720) ($22,464) Interest ($400) ($410) ($519) ($650) EBT $1,600 $1,990 $2,361 $2,806 Taxes (40%) ($640) ($796) ($945) ($1,123) Net Income (NI) $960 $1,194 $1,417 $1,684 Cash Dividends (40% of NI) ($384) ($478) ($567) ($674) Added Retained Earnings $576 $716 $850 $1,010 Balance Sheets $2,013 $2,014 $2,015 $2,016 Required Cash $1,000 $1,200 $1,440 $1,728 Surplus Cash $0 $0 $0 $0 Accounts Rec $2,000 $2,400 $2,880 $3,456 Inventories $2,200 $2,640 $3,168 $3,802 Total Current Assets $5,200 $6,240 $7,488 $8,986 Fixed Assets, Net $6,800 $8,160 $9,792 $11,750 Total Assets $12,000 $14,400 $17,280 $20,736 Accounts Pay $1,600 $1,920 $2,304 $2,765 Bank Loan $1,800 $1,800 $1,800 $1,800 Acc Liab $1,200 $1,440 $1,728 $2,074 Total Current Liab $4,600 $5,160 $5,832 $6,638 New LTD Borrowing (AFN) $0 $1,124 $2,481 $4,121 Long-Term Debt (Old Loan) $2,200 $2,200 $2,200 $2,200 Common Stock $2,400 $2,400 $2,400 $2,400 Retained Earnings $2,800 $3,516 $4,367 $5,377 Total liab & Equity $12,000 $14,400.00 $17,280 $20,736 Selected Ratios: (CL+AFN+LTD)/Total Assets 56.7% 58.9% 60.8% 62.5% (LTD + AFN)/Total Equity 42.3% 56.2% 69.2% 81.3% Net Income/Net Sales 6.4% 6.6% 6.6% 6.5% Net Income/Common Equity 18.5% 20.2% 20.9% 21.7% 0.08

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SOLUTION To project the percent of sales for the years 2016 and beyond we can use the historical dat... View the full answer