Saturday, January 22nd, 2011 at
11:48 am
I have this due soon and I am stuck 100%…..If anyone can help I would appreciate it greatly
The following information is available for a company. Set up the income statement and balance sheet for 2007, then forecast the income statement and balance sheet for 2008, assuming sales grow by 15%
During 2008 the company is going to buy a 0,000 machine, depreciated SL over 6 years. It will do its financing for next year using bonds that have a coupon rate of 8%. It pays 0,000 a year on its long term debt.
2007 2008
Additional Financing Necessary
Dividends (30% payout)
Taxable Income
Depreciation ,000
Cash5,000
Accruals ,000
Raw material 0,000
Curr. Assets
LTD at 10% 0,000
Labor 2,500
Accum. Depr. 5,000
Short Term portion of LTD 0,000
A/P ,000
TL & NW
Operating Costs 5,000
A/R 5,000
Curr. Liab.
GFA ,550,000
Sales ,250,000
Total Assets
Comm. Stock 0,000
Interest ,000
Contri. To RE
COGS
NFA
EBIT
Other Fixed Costs ,000
Taxes (40%)
Gross Profits
RE 5,000
Inv. 5,000
N/P at 8% ,000
After Tax Income
I tried to accomplish it all and I even though i figured out all of the missing figures but the balance sheet didnt even out or anything. The numbers are for 2007 and we need to forecast for 2008
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