In: Finance
Forecast the balance sheet for Lambert Co. using the following projected information ($000). Round all projections to the nearest thousand dollars.
Sales | $10000 |
Cash | $500 |
Accruals | $50 |
Gross Margin | 45% |
Inventory Turns (based on COGS) | 7.0 |
Total Asset Turnover | 1.25 |
Current Ratio | 2.0 |
Debt: Equity | 1:3 |
ACP | 42 days |
Assets | Liabilities | ||
Cash | ? | A/P | ? |
A/R | ? | Accruals | ? |
Inventory | ? | C/L | ? |
C/A | ? | Debt | ? |
Net F/A | ? | Equity | ? |
Total Assets | ? | Total L&E | ? |
Assets | Amt in 000 | Liabilities | Amt in 000 | |
Cash | 500 | A/P-note 8 | 1,168 | |
A/R - note 2 | 1,151 | Accruals | 50 | |
Inventory -note 3 | 786 | C/L-note 7 | 1,218 | |
C/A -note 4 | 2,436 | Debt - note 9 | 1,695 | |
Net F/A -note 5 | 5,564 | Equity - note 9 | 5,086 | |
Total Assets - note 1 | 8,000 | Total L&E -note 6 | 8,000 | |
Note -1 | Total asset = sales/asset = 1.25 | |||
Asset = 10000/1.25 | $8,000 | |||
Note 2 | AR = ACP*sales/365 | 1,151 | ||
=42*10000/365 | ||||
Note 3 | Inventory turnover = Cost of good sold/inventory = 7 | |||
=(10000*0.55)/inventory = 7 | ||||
inventory = 10000*0.55/7 | 786 | |||
Note 4 | C/A = Cash+AR + inventory | 2,436 | ||
Note 5 | Net fixed asset = Total asset - Current asset | 5,564 | ||
=8000-2436 | ||||
Note 6 | Total L&E = Total Asset = 8000 | |||
Note 7 | Current ratio = 2 = Current asset / Current liablities | |||
Current liabilities = Current asset / 2 = 2436/2 | 1,218 | |||
Note 8 | Account payable = Current liablities - Accruals = 1218-50 | 1,168 | ||
Note 9 | Total debt and equity = Total L&E - Current liablities = 8000-1218 | 6,782 | ||
Debt/equity ratio = 1:3 | ||||
Debt = 6832/4 | 1,695 | |||
Equity = 6832*3/4 | 5,086 |