SProblem 2 Note: Manual calculation mode is on. You must press F9 key to calculate. 3 Facts and Assumptions 4 Year 2014 2015 2016 5 Net sales $20,613 6 Growth rate in sales 25% 30% 7 Cost of goods soldet sales 86% 86% 8 Gen., sell, and admin. expenseset sales 12% 11% 9 Long-term debt $ 760 $ 660 $ 560 10 Current portion long-term debt $ 100 $ 100 $ 100 11 Interest rate 10% 10% 12 Tax rate 45% 45% 13 Dividend/earnings after tax 50% 14 Current assetset sales 29% 15 Net fixed assets $ 16 Current liabilitieset sales 280 $ 14.5% 14.4% $ 1,730 18 INCOME STATEMENT 50% 29% 270 17 Owners' equity 19 Year 2014 Forecast 2015 25.766 2016 2.13 3.7 4.10 7.12 Type here to search o Esc + F3 X @ F7 F8 # 3 $ 2 18 INCOME STATEMENT 2014 2016 19 Year 20 Net sales 21 Cost of good sold 22 Gross profit 23 Gen., sell, and admin. exp. 24 Interest expense 25 Earnings before tax 26 Tax 27 Earnings after tax 28 Dividends paid 29 Additions to retained earnings Forecast 2015 $25,766 22,159 3,607 3,092 231 285 128 156 78 78 30 BALANCE SHEET 31 Current assets 32 Net fixed assets 33 Total assets 34 Current liabilities 35 Long-term debt 36 Equity 37 Total liabilities and shareholders' equity 2.13 3.7 4.10 $ 7,472 280 7,752 3,736 660 1.808 6,204 7.12 Type here to search 6 C Esc @ F6 # F7 2 F8 3 4 Tab & 285 128 156 25 Earnings before tax 26 Tax 27 Earnings after tax 28 Dividends paid 29 Additions to retained earnings 78 78 30 BALANCE SHEET 31 Current assets 32 Net fixed assets 33 Total assets 34 Current liabilities 35 Long-term debt 36 Equity 37 Total liabilities and shareholders' equity $ 7,472 280 7,752 3,736 660 1,808 6,204 39 EXTERNAL FUNDING REQUIRED 40 41 $ 1,548 2.13 3.7 4.10 7.12 Type here to search II 6 Esc F3 F5 # F6 F7 ab 5 8. SProblem 2 Note: Manual calculation mode is on. You must press F9 key to calculate. 3 Facts and Assumptions 4 Year 2014 2015 2016 5 Net sales $20,613 6 Growth rate in sales 25% 30% 7 Cost of goods soldet sales 86% 86% 8 Gen., sell, and admin. expenseset sales 12% 11% 9 Long-term debt $ 760 $ 660 $ 560 10 Current portion long-term debt $ 100 $ 100 $ 100 11 Interest rate 10% 10% 12 Tax rate 45% 45% 13 Dividend/earnings after tax 50% 14 Current assetset sales 29% 15 Net fixed assets $ 16 Current liabilitieset sales 280 $ 14.5% 14.4% $ 1,730 18 INCOME STATEMENT 50% 29% 270 17 Owners' equity 19 Year 2014 Forecast 2015 25.766 2016 2.13 3.7 4.10 7.12 Type here to search o Esc + F3 X @ F7 F8 # 3 $ 2 18 INCOME STATEMENT 2014 2016 19 Year 20 Net sales 21 Cost of good sold 22 Gross profit 23 Gen., sell, and admin. exp. 24 Interest expense 25 Earnings before tax 26 Tax 27 Earnings after tax 28 Dividends paid 29 Additions to retained earnings Forecast 2015 $25,766 22,159 3,607 3,092 231 285 128 156 78 78 30 BALANCE SHEET 31 Current assets 32 Net fixed assets 33 Total assets 34 Current liabilities 35 Long-term debt 36 Equity 37 Total liabilities and shareholders' equity 2.13 3.7 4.10 $ 7,472 280 7,752 3,736 660 1.808 6,204 7.12 Type here to search 6 C Esc @ F6 # F7 2 F8 3 4 Tab & 285 128 156 25 Earnings before tax 26 Tax 27 Earnings after tax 28 Dividends paid 29 Additions to retained earnings 78 78 30 BALANCE SHEET 31 Current assets 32 Net fixed assets 33 Total assets 34 Current liabilities 35 Long-term debt 36 Equity 37 Total liabilities and shareholders' equity $ 7,472 280 7,752 3,736 660 1,808 6,204 39 EXTERNAL FUNDING REQUIRED 40 41 $ 1,548 2.13 3.7 4.10 7.12 Type here to search II 6 Esc F3 F5 # F6 F7 ab 5 8