Use Table 1 and the following information on Company X to perform a pro-forma financial modeling...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
"Use Table 1 and the following information on Company X to perform a pro-forma financial modeling using a percentage sales method, and answers the next questions. Note: When applying the percentage sales method, you should assume that the 2023 percentage values with respect to sales of the (i) costs except depreciation, (ii) depreciation, (iii) cash and equivalents, (iv) accounts receivable, (v) inventories, (vi) property, plant and equipment, and (vi) accounts payable will remain equal to those percentages of 2022. Sales in 2023 are expected to grow at a rate of 10%, with respect to the values of 2022. Assume also that the total values in 2023 of interest expense and debt will not change from its 2022 values; income tax will remain at 3% of the Pretax Income; and that Company X initially plans to payout 35% of its net income to its shareholders. ****Insert TABLE 1 here What is the forecasted value of sales for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." Table 1 Income Statement, 2022 Sales Costs except Depr. EBITDA Depreciation EBIT Interest Expense (net) Pretax Income Income Tax Net Income 800,000 -650,000 150,000 -2,000 148,000 -100,500 47,500 -1,425 46,075 Balance Sheet, 2022 Assets Cash and Equivalents Accounts Receivable Inventories Total Current Assets Property Plant & Equipment Total Assets Liabilities & Equity Accounts Payable Debt Total Liabilities Stockholders' Equity Total Liabilities and Equity 250,000 90,000 20,000 360,000 200,000 560,000 200,000 100,000 300,000 260,000 560,000 QUESTION 7 "Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Total Liabilities for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." QUESTION 8 "Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Shareholder's Equity for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." "Use Table 1 and the following information on Company X to perform a pro-forma financial modeling using a percentage sales method, and answers the next questions. Note: When applying the percentage sales method, you should assume that the 2023 percentage values with respect to sales of the (i) costs except depreciation, (ii) depreciation, (iii) cash and equivalents, (iv) accounts receivable, (v) inventories, (vi) property, plant and equipment, and (vi) accounts payable will remain equal to those percentages of 2022. Sales in 2023 are expected to grow at a rate of 10%, with respect to the values of 2022. Assume also that the total values in 2023 of interest expense and debt will not change from its 2022 values; income tax will remain at 3% of the Pretax Income; and that Company X initially plans to payout 35% of its net income to its shareholders. ****Insert TABLE 1 here What is the forecasted value of sales for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." Table 1 Income Statement, 2022 Sales Costs except Depr. EBITDA Depreciation EBIT Interest Expense (net) Pretax Income Income Tax Net Income 800,000 -650,000 150,000 -2,000 148,000 -100,500 47,500 -1,425 46,075 Balance Sheet, 2022 Assets Cash and Equivalents Accounts Receivable Inventories Total Current Assets Property Plant & Equipment Total Assets Liabilities & Equity Accounts Payable Debt Total Liabilities Stockholders' Equity Total Liabilities and Equity 250,000 90,000 20,000 360,000 200,000 560,000 200,000 100,000 300,000 260,000 560,000 QUESTION 7 "Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Total Liabilities for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." QUESTION 8 "Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Shareholder's Equity for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000."
Expert Answer:
Answer rating: 100% (QA)
Lets start with calculating the forecasted value of sales for 2023 Forecasted Sales for 2023 Sales in 2022 1 Growth Rate Forecasted Sales for 2023 800... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
Students also viewed these finance questions
-
Boeing outsourced their 787 "Dreamliner," butthe outsourcing decision ricocheted, resultingincosts over budget, rescinded sales, customers seekingcompensation for delays, and reduced potential ROI....
-
2. The figure below illustrates a mass that is connected to a movable base via a spring and a damper. The positions of the mass and base are defined by x and xb, respectively. Assume that the mass...
-
Use the following information on Company Y and perform pro-forma financial modeling using a planned expansion method to answers question (3) and (4). To do this assume that the percentage values with...
-
You kick a soccer ball, compressing it suddenly to 2/3 of its original volume. In the process, you do 410 J of work on the air (assumed to be an ideal gas) inside the ball. (a) What is the change in...
-
Air enters an adiabatic compressor at steady state at a pressure of 100 kPa, a temperature of 20oC, and a flow rate of 0.25 m3/s. Compressed air is discharged from the compressor at 800 kPa and...
-
True or False: You should interview users and management to help you define mission objectives.
-
The balance sheet of Alex Bros, follows. Assets $840,000 Liabilities $300,000 Preferred stock 50,000 Common stock 300,000 Additional paid-in capital (C/S) 100,000 Retained earnings 130,000 _ Less:...
-
Castillo Company reported these figures for 2014 and 2013: Requirements 1. Compute Castillo Company's earnings per share for 2014. Assume the company paid the minimum preferred dividend during 2014....
-
In 2022 you contribute $12,000 into a 401k plan. Your employer matches 25% of your contribution. You expect the fund to yield 10.5%. You are currently in the 35% bracket, what is your one year return...
-
Kennedy Prisby, age 33, is single and has no dependents. Her social security number is 111-22-3333. Her address is 101 North Fork Ave., Cedar City, UT 84720. She has no intention of donating to the...
-
71. Dividends paid to common shareholders and divided by common shares outstanding are equals to A. earning per share B. dividends per share C. book value of share D. market value of shares
-
Mail - Jame Mail - Jame x a Amazon.co x a Amazon.co. X https://gpt x _ Calendar - - C * gptc.blackboard.com/webapps/blackboard/content/contentWrapper.jsp?content_id=_1846554 GEORGIA PIEDMONT...
-
Prepare a partnership return and the appropriate K-1s for W & M Partnership. William Winston (SSN: 226-00-4265) lives at 53 Mantis Road, Your City, Your State - Your Zip. He operates Lovely Lady...
-
A new store is opening in Rock Spring, with 175,000 available square feet. Each department must have at least 17,000 square feet and no department can have more than 24% of the total retail floor...
-
Following is a partially completed balance sheet for Epsico Incorporated at December 31, 2022, together with comparative data for the year ended December 31, 2021. From the statement of cash flows...
-
Stockholders of Sarasota Company, Riverbed Company, and Pronghorn Company are considering alternative arrangements for a business combination. Balance sheets and the fair values of each company's...
-
High Low Method Ziegler Inc. has decided to use the high-low method to estimate the total cost and the Med and variable cont components of the total cost. The data for various levels of production...
-
Find the equation of the plane passing through the points P 5,4,3 ,Q 4,3,1 and R 1,5,4
-
The first decade of the 21st century witnessed a flurry of losses, bankruptcies, acquisitions, and strategic partnerships in the airline industry. The heavily levered firms in the industry are...
-
Firm A reports an increase in earnings per share; Firm B reports a decrease in earnings per share. Is this unconditionally informative about each firms performance? If not why is earnings per share...
-
Sunbeam Corporation manufactures and sells a variety of small household appliances, including toasters, food processors, and waffle grills. Exhibit 3.26 presents a statement of cash flows for Sunbeam...
-
Products must be adapted to accommodate national differences arising from customer preferences and each markets economic conditions, climate, culture, and language. Think about the following...
-
Global branding is key to international marketing success. Each year Interbrand (www.interbrand.com) publishes a ranking of the top 100 global brands. The ranking can be accessed by searching at the...
-
Office Depot (www.officedepot.com) is a supplier of office equipment and supplies. It has stores in Japan, Mexico, and Poland. Suppose Office Depot decides to launch a line of notebook computers and...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App