Calculate the 2016 forcast Facts and Assumptions Year 2014 2015 2016 Net sales $
ID: 2613531 • Letter: C
Question
Calculate the 2016 forcast
Facts and Assumptions Year 2014 2015 2016 Net sales $20,613 Growth rate in sales 25% 30% Cost of goods sold/net sales 86% 86% Gen., sell,, and admin. expenses/net sales 12% 11% Long-term debt $ 760 $ 660 $ 560 Current portion long-term debt $ 100 $ 100 $ 100 Interest rate 10% 10% Tax rate 45% 45% Dividend/earnings after tax 50% 50% Current assets/net sales 29% 29% Net fixed assets $ 280 $ 270 Current liabilities/net sales 14.5% 14.4% Owners' equity $ 1,730 INCOME STATEMENT Year 2014 Forecast 2015 2016 Net sales $25,766 Cost of good sold 22,159 Gross profit 3,607 Gen., sell,, and admin. exp. 3,092 Interest expense 231 Earnings before tax 285 Tax 128 Earnings after tax 156 Dividends paid 78 Additions to retained earnings 78 BALANCE SHEET Current assets $ 7,472 Net fixed assets 280 Total assets 7,752 Current liabilities 3,736 Long-term debt 660 Equity 1,808 Total liabilities and shareholders' equity 6,204 EXTERNAL FUNDING REQUIRED $ 1,548Explanation / Answer
INCOME STATEMENT Year 2014 Forecast 2015 2016 Net sales $25,766 26796.9 Cost of good sold 22,159 23,045 Gross profit 3,607 3,752 Gen., sell,, and admin. exp. 3,092 $2,948 Interest expense 231 $56 Earnings before tax 285 $747.91 Tax 128 $336.56 Earnings after tax 156 $411.35 Dividends paid 78 $205.67 Additions to retained earnings 78 $205.67 BALANCE SHEET Current assets $7,472 7771.101 Net fixed assets 280 $270 Total assets 7,752 $8,041 Current liabilities 3,736 3858.75 Long-term debt 660 $560 Equity 1,808 $2,013.67 Total liabilities and shareholders' equity 6,204 $6,432.43 EXTERNAL FUNDING REQUIRED $1,548 $1,608.67
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