The writer is very fast, professional and responded to the review request fast also. Thank you.
Suppose Mick’sis projecting a 20% increase in sales for the coming year, and thatcost of goods soldand general/administrative expenses remain a constant percentageof sales. Also assume that the amount of depreciation and interest paid and the firm’stax rate (35%) remain unchanged. Create the Pro Forma Income Statementfor 2005.Assume the firm’s dividend payout is 50%. What will the firm pay out in dividendsin 2005?Assume all information given in part A. Also, assume all assets and current liabilitiesare proportional to sales but long-term debt and equity are not proportional to sales. Ifthe firm’s tax rate remains unchanged, the dividend payout is 50%, what is theexternal financing needed (EFN) for 2006? Create thePro Forma Balance Sheet for2005.C.Given all the information in part A & B. If the firm is only operating at 82% ofcapacity, what are full capacity sales and what is the externalfinancing needed (EFN)for 2005?D. Suppose Mick’swishes to maintain a sustainable growth rate of 30% per year.Is thisgrowth rate possible? What must the dividend payout ratio be to make this feasible?Mick’s PlaceAssets20042005Liabilities& Owner’sEquity20042005Current AssetsCurrent LiabilitiesCash815906Accounts Payable9831292AccountsReceivable24052510Notes Payable720840Inventory46084906Other105188Total CA78288322Total CL18082320Fixed AssetsLong-term Debt48174960Net PPE1516419167Owner’s EquityTotal Assets2299227489Common Stock1000010000Retained Earnings636710209Total OE1636720209Total Liabilities & OE2299227489ncome Statement2005Sales33500Cost of Good Sold18970Depreciation1980EBIT12550Int486EBT12064Taxes4222NI7842
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more