Scribd Logo
Upload

Welcome to Scribd!

  • 1

    Uploaded by

    Nguyen Hoang Gia Uyen
    3 views4 pages
    This document contains balance sheet and income statement information for 2016, as well as an equation to calculate the change in sales needed for the company to achieve its target after-tax net income. It shows the company had $2.97 million in total assets in 2016, with $1.386 million in current assets and $1.584 million in fixed assets. Total liabilities were $891,000, with $594,000 in non-interest bearing liabilities and $297,000 in interest bearing liabilities. Sales for 2016 were $3.96 million, with net income of $274,725 after taxes of $183,150. The change in sales needed to hit the target is calculated to be $127,

    Original Description:

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document contains balance sheet and income statement information for 2016, as well as an equation to calculate the change in sales needed for the company to achieve its target after-tax net income. It shows the company had $2.97 million in total assets in 2016, with $1.386 million in current assets and $1.584 million in fixed assets. Total liabilities were $891,000, with $594,000 in non-interest bearing liabilities and $297,000 in interest bearing liabilities. Sales for 2016 were $3.96 million, with net income of $274,725 after taxes of $183,150. The change in sales needed to hit the target is calculated to be $127,

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    3 views4 pages

    1

    Uploaded by

    Nguyen Hoang Gia Uyen
    This document contains balance sheet and income statement information for 2016, as well as an equation to calculate the change in sales needed for the company to achieve its target after-tax net income. It shows the company had $2.97 million in total assets in 2016, with $1.386 million in current assets and $1.584 million in fixed assets. Total liabilities were $891,000, with $594,000 in non-interest bearing liabilities and $297,000 in interest bearing liabilities. Sales for 2016 were $3.96 million, with net income of $274,725 after taxes of $183,150. The change in sales needed to hit the target is calculated to be $127,

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 4

    a) Bal sheet 2016

    Cash 198,000
    Account Receivable 396,000
    Inven 792,000
    Total CA 1,386,000
    Fixed asset 1,584,000
    Total Assets 2,970,000

    Total liabilities 891,000


    Non-interest bearing liabilities 594,000
    Interest bearing liabilites 297,000
    Note payable 89,100
    L-T debt 207,900

    b)
    AFN=[(2700000/3600000)* S)-(596000/3600000)* S)]-((0.05*(3600000+ S)*(1-0.6))=0
    Δ S = 127,559.1

    Growth rate in sales=


    =
    AP 396,000
    Accrued 198,000
    Notes payable 89,100
    TCL 683,100
    Long term debt 207,900
    Common stock 1,765,110
    RE 313,890
    Total liabilities & Equity 2,970,000

    S)-(596000/3600000)* S)]-((0.05*(3600000+ S)*(1-0.6))=0

    ΔS/S0
    3.54%
    Income statement 2016
    Sales 3,960,000
    Operating cost 3,465,000
    EBIT 495,000
    Interest 37,125
    EBT 457,875
    Taxes 183,150
    NI 274,725
    Dividends 164,835
    Add RE 109,890

    AFN (2700000/3600000)*360000-(596000/3600000)*360000]-(0.05*3960000)*0.4
    = 131,200

    You might also like