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In: Finance
Austin Grocers recently reported the following 2019 income statement (in millions of dollars): Sales $700 Operating...
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 30% increase in sales, and it expects that its year-end operating costs, including depreciation, will equal 65% 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.
$ million - What is the expected growth rate in Austin's dividends? Do not
round intermediate calculations. Round your answer to two decimal
places.
%
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jeff jeffy answered 7 months agoRelated Solutions
Austin Grocers recently reported the following 2016 income statement (in millions of dollars): Sales $700 Operating...
Austin Grocers recently reported the following 2016 income
statement (in millions of dollars):
Sales
$700
Operating costs including depreciation
500
EBIT
$200
Interest
40
EBT
$160
Taxes (40%)
64
Net income
$96
Dividends
$32
Addition to retained earnings
$64
For the coming year, the company is forecasting a 15% increase
in sales, and it expects that its year-end operating costs,
including depreciation, will equal 60% of sales. Austin's tax rate,
interest expense, and dividend payout ratio are all expected to...
Austin Grocers recently reported the following 2016 income statement (in millions of dollars): Sales $700 Operating...
Austin Grocers recently reported the following 2016 income
statement (in millions of dollars):
Sales
$700
Operating costs including depreciation
500
EBIT
$200
Interest
40
EBT
$160
Taxes (40%)
64
Net income
$96
Dividends
$32
Addition to retained earnings
$64
For the coming year, the company is forecasting a 20% 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...
Austin Grocers recently reported the following 2016 income statement (in millions of dollars): Sales $700 Operating...
Austin Grocers recently reported the following 2016 income
statement (in millions of dollars):
Sales
$700
Operating costs including depreciation
500
EBIT
$200
Interest
40
EBT
$160
Taxes (40%)
64
Net income
$96
Dividends
$32
Addition to retained earnings
$64
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 60% of sales. Austin's tax rate,
interest expense, and dividend payout ratio are all expected to...
PRO FORMA INCOME STATEMENT Austin Grocers recently reported the following 2016 income statement (in millions of...
PRO FORMA INCOME STATEMENT
Austin Grocers recently reported the following 2016 income
statement (in millions of dollars):
Sales
$700
Operating costs including
depreciation
500
EBIT
$200
Interest
40
EBT
$160
Taxes (40%)
64
Net income
$96
Dividends
$32
Addition to retained earnings
$64
For the coming year, the company is forecasting a 15% increase
in sales, and it expects that its year-end operating costs,
including depreciation, will equal 65% of sales. Austin's tax rate,
interest expense, and dividend payout ratio...
AT&T recently reported (in millions) $8,250 of sales, $5,750 of operating costs other than depreciation, and...
AT&T recently reported (in millions) $8,250 of sales,
$5,750 of operating costs other than depreciation, and $1,100 of
depreciation. The company had $3,200 of outstanding bonds that
carry a 5% interest rate, and its federal-plus-state income tax
rate was 35%. In order to sustain its operations and thus generate
future sales and cash flows, the firm was required to make $1,250
of capital expenditures on new fixed assets and to invest $300 in
net operating working capital. By how much...
XYZ Corp recently reported $8,000 of sales, $5,750 of operating costs other than depreciation, and $700...
XYZ Corp recently reported $8,000 of sales, $5,750 of operating
costs other than depreciation, and $700 of depreciation. The
company had no amortization charges, it had $3,000 of outstanding
bonds that carry a 6% interest rate, and its federal-plus-state
income tax rate was 30%. In order to sustain its operations and
thus generate sales and cash flows in the future, the firm was
required to make $1,250 of capital expenditures on new fixed assets
and to invest $300 in net...
A firm reported the following income statement (all figures arein thousands of dollars):Net Sales...
A firm reported the following income statement (all figures are
in thousands of dollars):Net Sales1,100-operating costs200-depreciation & amortization230=Operating Income (EBIT)?-interest76=Earnings Before Taxes (EBT)?-taxes81=Net Income?What is the operating income of this firm?NOTE: the - and = in red have been added to serve as a hint on
how to compute each item of interest.A firm reported the following income statement (all figures are
in thousands of dollars):Net Sales1,550-operating costs200-depreciation & amortization220=Operating Income (EBIT)?-interest77=Earnings Before Taxes (EBT)?-taxes70=Net Income?What is the net income...
Watson Oil recently reported (in millions) $8,250 of sales, $5,750 of operating costs other than depreciation,...
Watson Oil recently reported (in millions) $8,250 of sales,
$5,750 of operating costs other than depreciation, and $850 of
depreciation. The company had $3,200 of outstanding bonds that
carry a 5% interest rate, and its federal-plus-state income tax
rate was 25%. In order to sustain its operations and thus generate
future sales and cash flows, the firm was required to make $1,250
of capital expenditures on new fixed assets and to invest $300 in
net operating working capital. By how...
Watson Oil recently reported (in millions) $8,250 of sales, $5,750 of operating costs other than depreciation,...
Watson Oil recently reported (in millions) $8,250 of sales,
$5,750 of operating costs other than depreciation, and $800 of
depreciation. The company had $3,200 of outstanding bonds that
carry a 5% interest rate, and its federal-plus-state income tax
rate was 35%. In order to sustain its operations and thus generate
future sales and cash flows, the firm was required to make $1,250
of capital expenditures on new fixed assets and to invest $300 in
net operating working capital. By how...
Income statement (millions of dollars) Net sales $ 39,579 COGS $ 12,180 Other Expenses $ 12,147...
Income statement (millions of dollars)
Net sales
$ 39,579
COGS
$ 12,180
Other Expenses
$ 12,147
Depreciation
$ 7,554
EBIT
$ 7,698
Interest Expense
$ 2,055
Income Before Tax
$ 5,643
Tax Expense (35%)
$ 2,055
Net income
$ 3,669
Dividends
$ 2,568
Balance sheet (millions of dollars)
Cash
$ 300
Accounts Receivable
$ 10,000
Inventories
$ 5,000
Other Assets
$ 3,000
Property, Plant and Equipment, net
$100,000
Other Long-Term Assets
$ 15,000
Accounts Payable
$ 8,000
Short-Term Debt
$ ...
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