Use the 2014 financial statements for Dynastatics, problem I6, and build a financial plan using a spreadsheet

Question:

Use the 2014 for Dynastatics, problem I6, and build a financial plan using a spreadsheet like that in Figure 19.2. Add $3,000,000 gross long-term assets and accumulated depreciation of ($2,200,000) to the 20I2 balance sheet. Thus 2014 net long-term assets are $3,000,000 - $2,200,000 = $800,000. Dynastatics is planning annual capital expenditure of $200,000 a year for the next five years, which will be added to gross long-term assets. Annual depreciation will be 10% net long-term assets of the previous year and added to the accumulated depreciation on the balance sheet. Maintain all other assumptions in problem 16. Add to the spreadsheet the listed in problem 31.

в с Н 1 Model Inputs Base Year Formula for Column G Income Statement 2014 2015 2016 3 Sales growth rate 0.4 2,420.0 =

a. Assuming that Dynastatics pays out two-thirds of net income as dividends and maintains a book debt ratio of 2S% of total capital, produce financial statements for 2013 to 20 17.
b. Maintaining the two-thirds dividend payout, but assuming that the balancing item is debt, prepare the 5 years of pro formas and compare the financial ratios to those in (a).

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Financial Ratios
The term is enough to curl one's hair, conjuring up those complex problems we encountered in high school math that left many of us babbling and frustrated. But when it comes to investing, that need not be the case. In fact, there are ratios that,...