S&S Air, INC. 2009 Income Statement Sales $30,499,420 Cost of goods sold $22,224,580 Other expenses $3,867,500...

S&S Air, INC.
2009 Income Statement
Sales		$30,499,420
Cost of goods sold		$22,224,580
Other expenses		$3,867,500
Depreciation		$1,366,680
EBIT		$3,040,660
Interest		$478,240
Taxable income		$2,562,420
Taxes (40%)		$1,024,968
Net income		$1,537,452
Dividends	$560,000
Add to retained earnings	$977,452

S&S Air, INC.
2009 Balance Sheet
Assets		Liabilities and Equity
Current assets		Current liabilities
Cash	$441,000	Accounts payable	$889,000
Accounts receivable	$708,400	Notes payable	$2,030,000
Inventory	$1,037,120	Total current liabilities	$2,919,000
Total current assets	$2,186,520
		Long term debt	$5,320,000
Fixed assets
Net plant and equipment	$16,122,400	Shareholder equity
		Common stock	$350,000
		Retained earnings	$9,719,920
		Total equity	$10,069,920

Total assets	$18,308,920	Total liabilities and equity	$18,308,920

Calculate the external financing needed (EFN) assuming 12% growth rate and full capacity operation. Use Excel to create pro-forma financial reports.

Expert Solution

jeff jeffy answered 5 months ago

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