Income Statement In thousands of dollars 2023 2022 Sales 9,650.1 8,245.0 Cost of Goods 7,275.0 6,271.5...

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Income Statement In thousands of dollars 2023 2022 Sales 9,650.1 8,245.0 Cost of Goods 7,275.0 6,271.5 Gross Profit 2,375.1 1,973.5 Selling and G&A Expenses 916.0 826.0 Fixed Expenses 300.0 EBITDA 1,159.1 300.0 847.5 Depreciation 120.0 Operating Income (EBIT) 1,039.1 100.0 747.5 Interest Expense Pre-tax Income Tax Net Income 158.5 880.6 193.7 686.9 151.9 595.6 131.0 464.6 Notes: Tax Rate Shares Outstanding Dividend per share 22% 110,000 22% 90,000 1.20 1.10 Use % of sales method and the following assumptions to create the pro-formas: 1 The firm has forecasted sales growth of 8%--that is, sales in 2023 are expected 8% higher than in 2023 2 The cost of goods sold (COGS) in 2024 is expected to change with sales at the two-year arithmetic average of the proportion of this item in relation to sales. 3 The selling and G&A expenses in 2024 are expected to change with sales at the two-year arithmetic average of the proportion of this item in relation to sales. 4 Depreciation will increase due to a new capital investment described in the point seven below. 5 The tax rate is expected at about 22%, in line with the previous two years 6 Cash, accounts receivable, inventory, accounts payable, and accrued expenses are expected to change with sales at the two-year arithmetic average of the proportion of these items in relation to sales. 7 The firm plans an investment of $1,000,000 in a repair equipment in 2024. The equipment has an estimated useful life of 8 years and no salvage value. This equipment will be depreciated using the straight line depreciation method. There are no other capital expenditures planned for 2024 8 All other financial statement items are expected to remain constant in 2024 as they were in 2023. 9 Assume the firm pays 13.11% interest on short-term debt and 5.75% on long term debt. 10 The management would like to increase the dividend per share by 25 cents compared to 2023 Conduct a Pro Forma analysis and determine if there is a deficit (TA-TL&Equity>0 in 2024 Note: You do not need to balance your Balance sheet ...yet. Other Inputs: Addition to PPE 1,000.0 Balance Sheet Life 8 In thousands of dollars Salvage 0 Assets 2023 2022 Additional Depreciation 125.0 Cash & Equivalents 280.0 225.0 Short-term debt interest 12.89% Accounts Receivable 550.0 440.0 Long-term debt interest 6.50% Inventory 1,410.0 1,200.0 Current Assets 2,240.0 1,865.0 Property, Plant & Equipmer 6,120.0 5,200.0 Accumulated Depreciation 430.0 310.0 Net Plant & Equipment 5,690.0 4,890.0 Total Assets 7,930.0 6,755.0 Liabilities and Equity 2023 2022 Accounts Payable 475.0 400.0 Notes Payable 200.1 150.0 Accrued Expenses 140.0 110.0 Current Liabilities 815.1 660.0 Long-term Debt 2,300.0 2,300.0 Total Liabilities 3,115.1 2,960.0 Common Stock (par $25) 2,750.0 2,250.0 Additional Paid-in-Capital Retained Earnings 800.0 835.0 1,264.9 710.0 Total Stockholders' Equity Total Liabilities and Equity 4,814.9 7,930.0 6,755.0 3,795.0 TA-TL Income Statement In thousands of dollars 2023 2022 Sales 9,650.1 8,245.0 Cost of Goods 7,275.0 6,271.5 Gross Profit 2,375.1 1,973.5 Selling and G&A Expenses 916.0 826.0 Fixed Expenses 300.0 EBITDA 1,159.1 300.0 847.5 Depreciation 120.0 Operating Income (EBIT) 1,039.1 100.0 747.5 Interest Expense Pre-tax Income Tax Net Income 158.5 880.6 193.7 686.9 151.9 595.6 131.0 464.6 Notes: Tax Rate Shares Outstanding Dividend per share 22% 110,000 22% 90,000 1.20 1.10 Use % of sales method and the following assumptions to create the pro-formas: 1 The firm has forecasted sales growth of 8%--that is, sales in 2023 are expected 8% higher than in 2023 2 The cost of goods sold (COGS) in 2024 is expected to change with sales at the two-year arithmetic average of the proportion of this item in relation to sales. 3 The selling and G&A expenses in 2024 are expected to change with sales at the two-year arithmetic average of the proportion of this item in relation to sales. 4 Depreciation will increase due to a new capital investment described in the point seven below. 5 The tax rate is expected at about 22%, in line with the previous two years 6 Cash, accounts receivable, inventory, accounts payable, and accrued expenses are expected to change with sales at the two-year arithmetic average of the proportion of these items in relation to sales. 7 The firm plans an investment of $1,000,000 in a repair equipment in 2024. The equipment has an estimated useful life of 8 years and no salvage value. This equipment will be depreciated using the straight line depreciation method. There are no other capital expenditures planned for 2024 8 All other financial statement items are expected to remain constant in 2024 as they were in 2023. 9 Assume the firm pays 13.11% interest on short-term debt and 5.75% on long term debt. 10 The management would like to increase the dividend per share by 25 cents compared to 2023 Conduct a Pro Forma analysis and determine if there is a deficit (TA-TL&Equity>0 in 2024 Note: You do not need to balance your Balance sheet ...yet. Other Inputs: Addition to PPE 1,000.0 Balance Sheet Life 8 In thousands of dollars Salvage 0 Assets 2023 2022 Additional Depreciation 125.0 Cash & Equivalents 280.0 225.0 Short-term debt interest 12.89% Accounts Receivable 550.0 440.0 Long-term debt interest 6.50% Inventory 1,410.0 1,200.0 Current Assets 2,240.0 1,865.0 Property, Plant & Equipmer 6,120.0 5,200.0 Accumulated Depreciation 430.0 310.0 Net Plant & Equipment 5,690.0 4,890.0 Total Assets 7,930.0 6,755.0 Liabilities and Equity 2023 2022 Accounts Payable 475.0 400.0 Notes Payable 200.1 150.0 Accrued Expenses 140.0 110.0 Current Liabilities 815.1 660.0 Long-term Debt 2,300.0 2,300.0 Total Liabilities 3,115.1 2,960.0 Common Stock (par $25) 2,750.0 2,250.0 Additional Paid-in-Capital Retained Earnings 800.0 835.0 1,264.9 710.0 Total Stockholders' Equity Total Liabilities and Equity 4,814.9 7,930.0 6,755.0 3,795.0 TA-TL