6-4. PRO FORMA INCOME STATEMENT Austin Grocers recently reported the following 2015 income statement (in millions of dollars): $700 $500 $200 40 Sales Operating costs including depreciation ЕBIT Interest EBT Тахes (40%) Net income $160 64 Dividends Addition to retained earnings $ 96 $32 $ 64 For the coming year, the company is forecasting a 25% increase in sales, and it expects that its year- end operating costs, including depreciation, will equal 70% of sales. Austin's tax rate, interest expense, and dividend payout ratio are all expected to remain constant. a. What is Austin's projected 2016 net income? b. What is the expected growth rate in Austin's dividends?

6-4. PRO FORMA INCOME STATEMENT Austin Grocers recently reported the following 2015 income statement (in millions of dollars): $700 $500 $200 40 Sales Operating costs including depreciation ЕBIT Interest EBT Тахes (40%) Net income $160 64 Dividends Addition to retained earnings $ 96 $32 $ 64 For the coming year, the company is forecasting a 25% increase in sales, and it expects that its year- end operating costs, including depreciation, will equal 70% of sales. Austin's tax rate, interest expense, and dividend payout ratio are all expected to remain constant. a. What is Austin's projected 2016 net income? b. What is the expected growth rate in Austin's dividends?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

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Austin Grocers recently reported the following 2016 income statement (in millions of dollars): Sales $700 Operating costs including depreciation 500 EBIT $200 40 Interest EBT Taxes (40%) Net income. $160 64 $96 $32 564 Dividends Addition to retained earnings i For the coming year, the company is forecasting a 35% increase in sales, and it expects that its year end operating costs, including depreciation, will equal 75% of sales. Austin's tax rate, interest expense, and dividend payout ratio are all expected to remain constant. a. What is Austin's projected 2017 net income? Enter your answer in millions. For example, an answer of $13,000,000 should be entered as 13. Round your answer to two decimal places. million b. What is the expected growth rate in Austin's dividerids? Do not round your intermediate calculations. Round your answer to two decimal places.
Austin Grocers recently reported the following 2019 income statement (in millions of dollars): Sales $700 Operating costs including depreciation 500 EBIT $200 Interest 40 EBT $160 Taxes (25%) 40 Net income $120 Dividends $40 Addition to retained earnings $80 For the coming year, the company is forecasting a 35% increase in sales, and it expects that its year-end operating costs, including depreciation, will equal 75% of sales. Austin's tax rate, interest expense, and dividend payout ratio are all expected to remain constant. What is Austin's projected 2020 net income? Enter your answer in millions. For example, an answer of $13,000,000 should be entered as 13. Round your answer to two decimal places.I got 98.13 and it says its wrong What is the expected growth rate in Austin's dividends? Do not round intermediate calculations. Round your answer to two decimal places. I am completely lost on this one An excel walk through it perfered :)
Austin Grocers recently reported the following 2019 income statement (in millions of dollars): Sales $700 Operating costs including depreciation 500 ЕBIT $200 Interest 40 ЕВT $160 Taxes (25%) 40 Net income $120 Dividends $40 Addition to retained earnings $80 For the coming year, the company is forecasting a 30% increase in sales, and it expects that its year-end operating costs, including depreciation, will equal 70% of sales. Austin's tax rate, interest expense, and dividend payout ratio are all expected to remain constant. a. What is Austin's projected 2020 net income? Enter your answer in millions. For example, an answer of $13,000,000 should be entered as 13. Round your answer to two decimal places. 2$ million b. What is the expected growth rate in Austin's dividends? Do not round intermediate calculations. Round your answer to two decimal places. %
The Optical scam company has forecast a sales growth of 20 percent for next year. The current financial statements are shown below: What is pro forma balance sheet for next year? Sales $ 31,600,000 Costs 26,675,500 Taxable income $ 4,924,500 Taxes 1,723,575 Net income $ 3,200,925 Dividends $ 1,280,370 Addition to retained earnings 1,920,555 Balance Sheet Assets Liabilities and Owners' Equity Current assets $ 7,320,000 Accounts payable $ 5,688,000 Long-term debt 6,636,000 Fixed assets 20,172,000 Common stock $ 1,594,000 Accumulated retained earnings 13,574,000 Total equity $ 15,168,000 Total assets $ 27,492,000 Total liabilities and equity
The following partial income statement data pertains to Tatum Toy Company's recent year completed and its forecast for the coming year (in millions): Recent $875.00 Sales Operating costs EBIT Interest expense EBT What was the expected percentage change in sales? a. 20% b. 16% c. -20% d. 55% e. 83% 625.00 $250.00 50.00 $200.00 Projected $1,050.00 682.50 $367.50 50.00 $317.50
Bajaj Ltd. reported the following statistics and results for 2020: Net operating income Return on sales $ 54,000 Asset turnover 2.5 Residual income $ 10,880 Required: 1. What was the value of Bajaj's average operating assets in 2020? Average operating assets 2 If the required rate of return is 7% what Is the ROI? (Round your answer to 2 decimal places.) ROI
During 2024, its first year of operations, Hollis Industries recorded sales of $11,600,000 and experienced returns of $710,000. Cost of goods sold totaled $7,540,000 (65% of sales). The company estimates that 7% of all sales will be returned. How much net revenue will Hollis Industries report at the end of its first year of operations? Net revenue
XYZ Corporation had the following data in 2022 below: Total assets = P300,000Gross profit margin = 25%Quick ratio = 0.80 xBond payable = P60,000Days sales outstanding = 36 daysDebt ratio = 50%Retained earnings = P97,500Times interest earned= 6 xInventory turnover = 5 xTotal assets turnover = 1.5 xNo. of days in a year = 360 days Tax rate = 35%Compute the total liabilities.
XYZ Corporation had the following data in 2022 below: Total assets = P300,000Gross profit margin = 25%Quick ratio = 0.80 xBond payable = P60,000Days sales outstanding = 36 daysDebt ratio = 50%Retained earnings = P97,500Times interest earned= 6 xInventory turnover = 5 xTotal assets turnover = 1.5 xNo. of days in a year = 360 days Tax rate = 35%Compute the average merchandise inventory.
The table below shows the manufacturing costs, overhead and profit of a company between 2016 and 2019. The total bars represent the revenues. What line item experienced the biggest year-on-year growth rate across any of these years? SELECT ONLY ONE Profit $35,000 $30,000 $9,000 $25,000 $20,000 $8,000 $15,000 $4,000 $10,000 $3,000 $3,500 $3,000 $3,000 $16,000 $5,000 $2.000 $6,000 $7,000 $4,000 2016 2017 2018 2019 Q Manufacturing cost Overhead Profit Overhead Revenues Manufacturing cost
The table given below summarizes the 2022 income statement and end-year balance sheet of Drake's Bowling Alleys. Drake's financial manager forecasts a 10% increase in sales and costs in 2023. The ratio of sales to average assets is expected to remain at 0.40. Interest is forecasted at 5% of debt at the start of the year. Sales Costs Interest Pretax profit Tax Net income Income Statement $ in thousands $ 2,000 (40% of average assets) a 1,500 75 425 (75% of sales) (5% of debt at start of year)b 170 (40% of pretax profit) $ 255 aAssets at the end of 2021 were $4,800,000. bDebt at the end of 2021 was $1,500,000. Balance Sheet $ in thousands Net assets Total $ 5,200 $ 5,200 Debt Equity Total $ 1,500 3,700 $ 5,200 a. Internal growth rate b. Sustainable growth rate % % a. What is the implied level of assets at the end of 2023? Note: Enter your answer in dollars not in thousands. b. If the company pays out 50% of net income as dividends, how much cash will Drake need to raise in the capital…
The table given below summarizes the 2022 income statement and end-year balance sheet of Drake's Bowling Alleys. Drake's financial manager forecasts a 10% increase in sales and costs in 2023. The ratio of sales to average assets is expected to remain at 0.40. Interest is forecasted at 5% of debt at the start of the year. Sales Costs Interest Pretax profit Tax Net income Income Statement $ in thousands $ 2,500 1,875 100 (40% of average assets) (75% of sales) (5% of debt at start of year)b 525 210 (40% of pretax profit) $ 315 aAssets at the end of 2021 were $6,000,000. bDebt at the end of 2021 was $2,000,000. Balance Sheet $ in thousands $ 6,500 Debt Equity Net assets Total $ 6,500 Total $ 2,000 4,500 $ 6,500 a. What is the implied level of assets at the end of 2023? Note: Enter your answer in dollars not in thousands. b. If the company pays out 50% of net income as dividends, how much cash will Drake need to raise in the capital markets in 2023? Assumes debt remains constant. Note: Do…

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