Assume the following partially completed financial plan ($000): Income Statement
ID: 2673088 • Letter: A
Question
Assume the following partially completed financial plan ($000):
Income Statement Balance Sheet
Next Year This Year Next Year
Revenue $5,000 Total Assets $1,000 $2,000
Operating expenses 4,000 Liabilities & equity: ? ?
EBIT 1,000 Current liabilities $ 576 $ 200
Interest (8%) ? Long-term debt 100 ?
EBT ? Equity 324 ?
Taxes(40%) ?
Earnings after tax ? Total liabilities
& equity $1,000 $2,000
The firm pays 8% interest on all of its debt and is subject to a 40% tax rate. Complete the plan.
Explanation / Answer
Income Statement
Balance Sheet
Next Year
This Year
Next Year
Revenue
$5,000
Total assets
$1,000
$2,000
Operating expenses
4,000
Liabilities & equity:
EBIT
1,000
Current liabilities
$ 576
$ 200
Interest (8%)
8
Long-term debt
100
100
595
EBT
992
Equity
324
1105
Taxes(40%)
397
Earnings after tax
595
Total liabilities
& equity
$1,000
$2,000
Income Statement
Balance Sheet
Next Year
This Year
Next Year
Revenue
$5,000
Total assets
$1,000
$2,000
Operating expenses
4,000
Liabilities & equity:
EBIT
1,000
Current liabilities
$ 576
$ 200
Interest (8%)
8
Long-term debt
100
100
595
EBT
992
Equity
324
1105
Taxes(40%)
397
Earnings after tax
595
Total liabilities
& equity
$1,000
$2,000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.