Jim's Espresso expects sales to grow by 10.4% next year. Assume that Jim's pays out 85.9% of its net income. Use the following statements LOADING... and the percent of sales method to forecast: a. Stockholders' equity b. Accounts payable The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. Income Statement Sales $205,430 Costs Except Depreciation (99,920) EBITDA $105,510 Depreciation (6,070) EBIT $99,440 Interest Expense (net) (570) Pretax Income $98,870 Income Tax (34,605) Net Income $64,265 Balance Sheet Assets Cash and Equivalents $14,920 Accounts Receivable 2,010 Inventories 3,950 Total Current Assets $20,880 Property, Plant and Equipment 10,070 Total Assets $30,950 Liabilities and Equity Accounts Payable $1,400 Debt 4,100 Total Liabilities $5,500 Stockholders' Equity 25,450 Total Liabilities and Equity $30,950
Jim's Espresso expects sales to grow by 10.4% next year. Assume that Jim's pays out 85.9% of its net income. Use the following statements LOADING... and the percent of sales method to forecast: a. Stockholders' equity b. Accounts payable The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. Income Statement Sales $205,430 Costs Except Depreciation (99,920) EBITDA $105,510 Depreciation (6,070) EBIT $99,440 Interest Expense (net) (570) Pretax Income $98,870 Income Tax (34,605) Net Income $64,265 Balance Sheet Assets Cash and Equivalents $14,920 Accounts Receivable 2,010 Inventories 3,950 Total Current Assets $20,880 Property, Plant and Equipment 10,070 Total Assets $30,950 Liabilities and Equity Accounts Payable $1,400 Debt 4,100 Total Liabilities $5,500 Stockholders' Equity 25,450 Total Liabilities and Equity $30,950
Chapter4: Financial Planning And Forecasting
Section: Chapter Questions
Problem 7P
Related questions
Question
Jim's Espresso expects sales to grow by
and the percent of sales method to forecast:
10.4%
next year. Assume that Jim's pays out
85.9%
of its net income. Use the following statements
LOADING...
a. Stockholders' equity
b. Accounts payable
The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career.
Income Statement
Sales $205,430
Costs Except Depreciation (99,920)
EBITDA $105,510
Depreciation (6,070)
EBIT $99,440
Interest Expense (net) (570)
Pretax Income $98,870
Income Tax (34,605)
Net Income $64,265
Sales $205,430
Costs Except Depreciation (99,920)
EBITDA $105,510
Depreciation (6,070)
EBIT $99,440
Interest Expense (net) (570)
Pretax Income $98,870
Income Tax (34,605)
Net Income $64,265
Balance Sheet
Assets
Cash and Equivalents $14,920
Accounts Receivable 2,010
Inventories 3,950
Total Current Assets $20,880
Property, Plant and Equipment 10,070
Total Assets $30,950
Liabilities and Equity
Accounts Payable $1,400
Debt 4,100
Total Liabilities $5,500
Stockholders' Equity 25,450
Total Liabilities and Equity $30,950
Assets
Cash and Equivalents $14,920
Accounts Receivable 2,010
Inventories 3,950
Total Current Assets $20,880
Property, Plant and Equipment 10,070
Total Assets $30,950
Liabilities and Equity
Accounts Payable $1,400
Debt 4,100
Total Liabilities $5,500
Stockholders' Equity 25,450
Total Liabilities and Equity $30,950
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