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Balance Sheet as of December 31, 2018 (Thousands of Dollars) Cash $ 1,080 Accounts payable $...
Balance Sheet as of December 31, 2018 (Thousands of Dollars)
| Cash | $ 1,080 | Accounts payable | $ 4,320 | |
| Receivables | 6,480 | Accruals | 2,880 | |
| Inventories | 9,000 | Line of credit | 0 | |
| Total current assets | $16,560 | Notes payable | 2,100 | |
| Net fixed assets | 12,600 | Total current liabilities | $ 9,300 | |
| Mortgage bonds | 3,500 | |||
| Common stock | 3,500 | |||
| Retained earnings | 12,860 | |||
| Total assets | $29,160 | Total liabilities and equity | $29,160 |
Income Statement for January 1 - December 31, 2018 (Thousands of Dollars)
| Sales | $36,000 |
| Operating costs | 32,440 |
| Earnings before interest and taxes | $ 3,560 |
| Interest | 460 |
| Pre-tax earnings | $ 3,100 |
| Taxes (40%) | 1,240 |
| Net income | $ 1,860 |
| Dividends (45%) | $ 837 |
| Addition to retained earnings | $ 1,023 |
- Suppose 2019 sales are projected to increase by 20% over 2018
sales. Use the forecasted financial statement method to forecast a
balance sheet and income statement for December 31, 2019. The
interest rate on all debt is 12%, and cash earns no interest
income. Assume that all additional debt in the form of a line of
credit is added at the end of the year, which means that you should
base the forecasted interest expense on the balance of debt at the
beginning of the year. Use the forecasted income statement to
determine the addition to retained earnings. Assume that the
company was operating at full capacity in 2018, that it cannot sell
off any of its fixed assets, and that any required financing will
be borrowed as notes payable. Also, assume that assets, spontaneous
liabilities, and operating costs are expected to increase by the
same percentage as sales. Determine the additional funds needed. Do
not round intermediate calculations. Round your answers to the
nearest dollar.
Total assets: $
AFN: $ - What is the resulting total forecasted amount of the line of
credit? Do not round intermediate calculations. Round your answer
to the nearest dollar.
$ - In your answers to Parts a and b, you should not have charged
any interest on the additional debt added during 2019 because it
was assumed that the new debt was added at the end of the year. But
now suppose that the new debt is added throughout the year. Don't
do any calculations, but how would this change the answers to parts
a and b?
If debt is added throughout the year rather than only at the end of the year, interest expense will be higher or lower than in the projections of part a. This would cause net income to be higher or lower, the addition to retained earnings to be higher or lower, and the AFN to be higher or lower . Thus, you would have to add or subtract from new debt.
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jeff jeffy answered 3 years agoRelated Solutions
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Accounts Payable
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Receivables
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Accruals
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Inventories
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Notes payable
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Total current assets
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Net fixed assets
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Common stock
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Total liabilities and equity
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(Thousands of Dollars)
Sales
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Krogh Lumber: Balance Sheet as of December
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Total liabilities and equity
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Krogh Lumber: Income Statement for December
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Sales
$36,000
Operating costs including depreciation
30,783
Earnings before interest and taxes
$5,217...
Krogh Lumber: Balance Sheet as of December 31, 2016 (Thousands of Dollars) Cash $1,800 Accounts payable...
Krogh Lumber: Balance Sheet as of December 31, 2016 (Thousands
of Dollars)
Cash $1,800 Accounts payable $7,200
Receivables 10,800 Notes payable 3,472
Inventories 12,600 Accrued liabilities 2,520
Total current assets $25,200 Total current liabilities
$13,192
Mortgage bonds 5,000
Net fixed assets 21,600 Common stock 2,000
Retained earnings 26,608
Total assets $46,800 Total liabilities and equity
$46,800
Krogh Lumber: Income Statement for December 31, 2016
(Thousands of Dollars)
Sales $36,000
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Earnings before interest and taxes $5,217...
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Dansko Integrated
Balance Sheet
As of December 31, 2019
(amounts in thousands)
Cash
99,000
Accounts Payable
27,000
Accounts Receivable
45,000
Debt
35,000
Inventory
38,000
Other Liabilities
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Property Plant & Equipment, Gross
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Total Liabilities
72,000
Accumulated Depreciation
67,000
Paid-In Capital
80,000
Property Plant & Equipment, Net
168,000
Retained Earnings
214,000
Other Assets
16,000
Total Equity
294,000
Total Assets
366,000
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366,000
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Lightspeed Industries
Balance Sheet
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Cash
106,000
Accounts Payable
26,000
Accounts Receivable
32,000
Debt
30,000
Inventory
41,000
Other Liabilities
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Property Plant & Equipment, Gross
212,000
Total Liabilities
63,000
Accumulated Depreciation
72,000
Paid-In Capital
80,000
Property Plant & Equipment, Net
140,000
Retained Earnings
246,000
Other Assets
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Total Equity
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389,000
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Stealcase’s Balance Sheet, as of December 31(thousands of
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2017
2018
2017
2018
Cash
30
25
Account
Payable
35
50
Accts Receivable
5
20
Bank Loan
25
25
Inventory
100
100
Accrued
Taxes
15 25
Current Assets
135
245
Long Term, Dept current portion
12 12
Current
Liabilities
87 112
Net Plant & Equip
200
250
Long-Term
Dept
100 95
Common Stock (10,000 shares)
100 100
Additional paid-in...
ABC Corp. Balance Sheet As of December 31, 2018 Assets Liability Cash $6,000 Accounts Payable $3,000...
ABC Corp. Balance Sheet As of December 31,
2018
Assets
Liability
Cash
$6,000
Accounts Payable
$3,000
Accounts Receivable
$4,000
Stockholders' Equity
Common Stock
$3,000
Retained Earnings
$4,000
Total Liability and Stockholders' Equity
Total Assets
$10,000
$10,000
1. On January 1st, 2019, ABC Corp bought an equipment for
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ABC Corp. Balance Sheet As of December 31, 2018 Assets Liability Cash $6,000 Accounts Payable $3,000...
ABC Corp. Balance Sheet As of December 31,
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Assets
Liability
Cash
$6,000
Accounts Payable
$3,000
Accounts Receivable
$4,000
Stockholders' Equity
Common Stock
$3,000
Retained Earnings
$4,000
Total Liability and Stockholders' Equity
Total Assets
$10,000
$10,000
On January 1st, 2019, ABC Corp bought an equipment
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On May 1st, 2018, ABC Corp received $1,200 cash for
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Acme Company Balance Sheet As of January 5, 2018 (amounts in thousands) Cash 14,300 Accounts Payable...
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700 Paid-In Capital 7,700 Retained Earnings 22,900 Total Equity
30,600 Total Assets 39,700 Total Liabilities & Equity 39,700
Update the balance sheet above to reflect the transactions below,
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Valley Technology Balance Sheet As of March 11, 2018 (amounts in thousands) Cash 9,700 Accounts Payable...
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4,500 Debt 2,900 Inventory 3,800 Other Liabilities 800 Property
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1,700 Paid-In Capital 7,300 Retained Earnings 23,600 Total Equity
30,900 Total Assets 36,100 Total Liabilities & Equity 36,100
Use T-accounts to record the transactions below, which occur on
March 12, 2018, close the T-accounts, and construct a balance sheet
to answer the question....
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