Jim's Espresso expects sales to grow by 10.2% next year. Assume that Jim's pays out 82.9%...

   

Transcribed Image Text:

Jim's Espresso expects sales to grow by 10.2% next year. Assume that Jim's pays out 82.9% of its net income. Use the following statements and the percent of sales method to forecast: a. Stockholders' equity b. Accounts payable CETT Data table Click on the icons located on the top-right comers of the data tables below to copy their contents into a spreadsheet. Income Statement Sales Costs Except Depreciation EBITDA Depreciation EBIT Interest Expense (net) Pre-tax Income Income Tax Net Income $199,100 (99,160) $99,940 (6,050) $93,890 (220) $93,670 (32,785) $60,885 Balance Sheet Assets Cash and Equivalents Accounts Receivable Inventories Total Current Assets Property, Plant, and Equipment Total Assets Liabilities and Equity. Accounts Payable Debt Total Liabilities Stockholders' Equity Total Liabilities and Equity $14,910 2,100 4,080 $21,090 10,000 $31,090 $1,400 3,980 $5,380 25,710 $31,090 x Jim's Espresso expects sales to grow by 10.2% next year. Assume that Jim's pays out 82.9% of its net income. Use the following statements and the percent of sales method to forecast: a. Stockholders' equity b. Accounts payable CETT Data table Click on the icons located on the top-right comers of the data tables below to copy their contents into a spreadsheet. Income Statement Sales Costs Except Depreciation EBITDA Depreciation EBIT Interest Expense (net) Pre-tax Income Income Tax Net Income $199,100 (99,160) $99,940 (6,050) $93,890 (220) $93,670 (32,785) $60,885 Balance Sheet Assets Cash and Equivalents Accounts Receivable Inventories Total Current Assets Property, Plant, and Equipment Total Assets Liabilities and Equity. Accounts Payable Debt Total Liabilities Stockholders' Equity Total Liabilities and Equity $14,910 2,100 4,080 $21,090 10,000 $31,090 $1,400 3,980 $5,380 25,710 $31,090 x

Answer rating: 100% (QA)

Sales next year can be calculated as Sales this year 1 i Where i is the sale... View the full answer