Prepare the income statement and balance sheet for the next year based on these assumptions: a.) cash, fixed assets, payables and accruals will with sales (10%) b.) the current composition of interest bearing debts, which includes short term bank loans and long term bonds, will be maintained for a next year. c.) a tax rate of 40% d.) 10% interest rate on all interest bearing debts e.) 50 common shares outstanding
Forecast Liabities Forecast Assets Forecast
Sales 3000 ?3,300 Payables & accruals 200 220 Cash 50 55
Operating Expens -2800 ST bank Loan 100 100 AR 350
EBIT 200 Total Current LIab 300 Inventories 600
Int Exp -85 LT Bonds 750 750 Fixed Assets 1000 1100
EBT 115 Total LIabilites 1050
Taxes -46 Common Stock 150
Net Income 69 Retained Earnings 800
Dividends -20 Total Common Stock 950
Additional Retained 49 Total Liabilities & 2000 Total Assets 2000
Earnings Captial
I did a and b, but I can't figure out how to do the rest.... For the income statement do all the other numbers stay the same in forecasting? But I don't know how to do c, d, and e. Thanks to anybody that can help!!
Forecast Liabities Forecast Assets Forecast
Sales 3000 ?3,300 Payables & accruals 200 220 Cash 50 55
Operating Expens -2800 ST bank Loan 100 100 AR 350
EBIT 200 Total Current LIab 300 Inventories 600
Int Exp -85 LT Bonds 750 750 Fixed Assets 1000 1100
EBT 115 Total LIabilites 1050
Taxes -46 Common Stock 150
Net Income 69 Retained Earnings 800
Dividends -20 Total Common Stock 950
Additional Retained 49 Total Liabilities & 2000 Total Assets 2000
Earnings Captial
I did a and b, but I can't figure out how to do the rest.... For the income statement do all the other numbers stay the same in forecasting? But I don't know how to do c, d, and e. Thanks to anybody that can help!!