Munch Manufacturing Income Statement 2 Fiscal Year Ending Sept. 30, 2019 3 All figures in thousands...

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Munch Manufacturing Income Statement 2 Fiscal Year Ending Sept. 30, 2019 3 All figures in thousands except per share figures Net Sales Cost of Goods Sold 8 Gross Profit 9 S, G&A Expense 10 Depreciation Expense 11 EBIT 12 Interest 13 EBT 14 Taxes (34%) 15 Net Income 16 17 Dividends Paid 18 Addition to Retained Earnings 19 20 Other Data 21 Market Price of Common Shares 22 #Shares Outstanding (000s) 23 Weighted Average Cost of Capital 24 Average Tax Rate 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 2019 257,385 120,971 136,414 91,372 1,318 43,724 2,743 40,981 13,934 27,047 19,875 7,172 $23.78 7,500 6.90% 34.00% C D Munch Manufacturing Income Statement Fiscal Year Ending Sept. 30, 2019 All figures in thousands except per share figures Cash Marketable Securities Accounts Receivable Inventory Prepaid Expenses Total Current Assets Fixed Assets Accumulated Depreciation Fixed Assets Net of Depreciation Total Assets Accounts Payable Notes Payable Accrued Expenses Total Current Liabilities Long-Term Debt Total Liabilities Common Stock ($1 Par) Capital Paid In Excess of Par Retained Earnings Total Common Equity Total Liabilities and Equity Forescasting Assumptions: 2019 23,848 6,384 31,685 16,994 866 79,777 66,421 (14,805) 51,616 131,393 15,686 4,845 14,241 34,772 22,580 57,352 7,500 30,632 35,909 74,041 131,393 H 2020 Sales grow by 6.0% over 2019 Sales 2020 Dividends Paid $21,186 Fixed Assets Net of Depreciation increase by $6,500 ($6.5 million) Use 2019 % of Sales figures to forecast 2020 accounts Round all forecasted figures to the nearest dollar This question requires you to forecast Munch's pro forma income statement for 2020 using the 2019 data and the following assumptions: • 2020 sales are 6.0% higher than 2019 Sales • 2020 Dividends Paid are $21,186 • 2020 Fixed Assets Net of Depreciation are increased by 6,500 ($6.5 million) over 2019 • 2020 Addition to Retained Earnings is added to Retained Earnings on the 2020 pro forma balance sheet • All figures are in thousands of dollars, and all answers will also be in thousands of dollars. What is Much's forecasted Gross Profit for 2020? Round your answer to the nearest thousand. Answer: Munch Manufacturing Income Statement 2 Fiscal Year Ending Sept. 30, 2019 3 All figures in thousands except per share figures Net Sales Cost of Goods Sold 8 Gross Profit 9 S, G&A Expense 10 Depreciation Expense 11 EBIT 12 Interest 13 EBT 14 Taxes (34%) 15 Net Income 16 17 Dividends Paid 18 Addition to Retained Earnings 19 20 Other Data 21 Market Price of Common Shares 22 #Shares Outstanding (000s) 23 Weighted Average Cost of Capital 24 Average Tax Rate 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 2019 257,385 120,971 136,414 91,372 1,318 43,724 2,743 40,981 13,934 27,047 19,875 7,172 $23.78 7,500 6.90% 34.00% C D Munch Manufacturing Income Statement Fiscal Year Ending Sept. 30, 2019 All figures in thousands except per share figures Cash Marketable Securities Accounts Receivable Inventory Prepaid Expenses Total Current Assets Fixed Assets Accumulated Depreciation Fixed Assets Net of Depreciation Total Assets Accounts Payable Notes Payable Accrued Expenses Total Current Liabilities Long-Term Debt Total Liabilities Common Stock ($1 Par) Capital Paid In Excess of Par Retained Earnings Total Common Equity Total Liabilities and Equity Forescasting Assumptions: 2019 23,848 6,384 31,685 16,994 866 79,777 66,421 (14,805) 51,616 131,393 15,686 4,845 14,241 34,772 22,580 57,352 7,500 30,632 35,909 74,041 131,393 H 2020 Sales grow by 6.0% over 2019 Sales 2020 Dividends Paid $21,186 Fixed Assets Net of Depreciation increase by $6,500 ($6.5 million) Use 2019 % of Sales figures to forecast 2020 accounts Round all forecasted figures to the nearest dollar This question requires you to forecast Munch's pro forma income statement for 2020 using the 2019 data and the following assumptions: • 2020 sales are 6.0% higher than 2019 Sales • 2020 Dividends Paid are $21,186 • 2020 Fixed Assets Net of Depreciation are increased by 6,500 ($6.5 million) over 2019 • 2020 Addition to Retained Earnings is added to Retained Earnings on the 2020 pro forma balance sheet • All figures are in thousands of dollars, and all answers will also be in thousands of dollars. What is Much's forecasted Gross Profit for 2020? Round your answer to the nearest thousand. Answer:

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