Microdrive Incorporated: Actual 2017 and projected 2018 Balance sheets (millio

Actual Forecast First

2017 (1) Basis (2) Pass (3)
Cash $10 X1.10 $11
Accounts receivable 375 X1.10 412
Inventories 615 X1.10 677
Total current assets 1000 1100
Net Plant and equipment 1000 X1.10 1100
Total Assets 2000 2200

Accounts payable 60 X1.10 66

Notes Payable 110 110
Accruals 140 X1.10 154
Total Current liabilities 310 330
Long term bonds 754 754
Total debt 1064 1,084
Preferred stock 40 40
Common stock 130 130
Retained Earnings 766 68 834
Total Common equity 896 964
Total Liabilities and equity 2000 2088
Additional funds needed (AFN) this 112
Cummulative external AFN 112

there are 50 million ordinary shares outstanding

growth rate in div = 0.08 0.08

Additional funds raised

notes payable 25% interest rate 8%
long term bonds 25% 10%
common stock 50%
price of stock $23 (Dec 2017)
Total

DPS (2017) $58 million /50 million shares

$1.16
Forecasted DPS (2018) $1.25
2018 Balance sheets (million dollars)

Second Final
AFN (4) Pass (5) (6)
$11 $11
412 412
677 677
1100 1100
1100 1100
$2200 $2200

66 66
28 138 140
154 154
358 360
28 782 784
1140 1144
40 40
56 186 189
827 827
1013 1016
112 2193 2200
7 0
119 119

External
Finance
raised
after the
first
External financed raised finance
first goal feedback
$28m $2m
$28m $2m
$56m $3m

$112m $7m
Microdrive Incorporated: Actual 2017 and Projected 2018 Income Statements (million do

Forecast
Actual 2017 (1) basis (2)
Sales $3,000 x1.10
Costs except depreciation $2,616 x1.10
Depreciation 100 x1.10
Total operating costs 2,716
EBIT 284
less Interest 88 i
Earnings before taxes (EBT) 196
Taxes (40%) 78
NI before preferred dividends 118
Preferred Dividends 4
NI available to common 114
Dividends to common 58
Addition to retained earnings 56
ome Statements (million dollars)

First Feedback Second Final

Pass (3) (4) Pass (5) (6)
$3,300 $3,300 $3,300
2,878 2,878 2,878
110 110 110
2,988 2,988 2,988
312 312 312
88 5 93 93
224 219 219
89 -1 88 88
135 131 131
4 4 4
131 127 127
63 3 66 66
68 -7 61 61