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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 2 years agoRelated Solutions
Stevens Textile: Balance Sheet as of December 31, 2006 (Thousands of Dollars) Cash $ 1,080 Accounts...
Stevens Textile: Balance Sheet as of December 31,
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(Thousands of Dollars)
Cash
$ 1,080
Accounts Payable
$ 4,320
Receivables
6,480
Accruals
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Inventories
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Notes payable
2,100
Total current assets
$16,560
Total current liabilities
$ 9,300
Net fixed assets
12,600
Mortgage bonds
3,500
Common stock
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Retained earnings
12,860
Total assets
$29,160
Total liabilities and equity
$29,160
Stevens Textile: Income Statement as of December 31,
2006
(Thousands of Dollars)
Sales
$36,000
Operating costs
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Earnings...
Krogh Lumber: Balance Sheet as of December 31, 2016 (Thousands of Dollars) Cash $1,800 Accounts payable...
Krogh Lumber: Balance Sheet as of December
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Cash
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Accounts payable
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Receivables
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Notes payable
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Inventories
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Accrued liabilities
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Total current assets
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$13,192
Mortgage bonds
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Net fixed assets
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Common stock
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Retained earnings
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Total assets
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Total liabilities and equity
$46,800
Krogh Lumber: Income Statement for December
31, 2016 (Thousands of Dollars)
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
Operating costs including depreciation 30,783
Earnings before interest and taxes $5,217...
Dansko Integrated Balance Sheet As of December 31, 2019 (amounts in thousands) Cash 99,000 Accounts Payable...
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
10,000
Property Plant & Equipment, Gross
235,000
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
Total Liabilities & Equity
366,000
Dansko Integrated
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January 1 to March 31, 2020
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Lightspeed Industries
Balance Sheet
As of December 31, 2019
(amounts in thousands)
Cash
106,000
Accounts Payable
26,000
Accounts Receivable
32,000
Debt
30,000
Inventory
41,000
Other Liabilities
7,000
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
70,000
Total Equity
326,000
Total Assets
389,000
Total Liabilities & Equity
389,000
Lightspeed Industries
Statement of Cash Flows
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Stealcase’s Balance Sheet, as of December 31(thousands of dollars)
Stealcase’s Balance Sheet, as of December 31(thousands of
dollars)
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
$2,000. The equipment has a useful life of 5 years and has a
salvage value of $500. The company uses double-declining
depreciation method.
2. On March 1 st, 2019, ABC Corp received $2,400...
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
On January 1st, 2019, ABC Corp bought an equipment
for $2,000. The equipment has a useful life of 5 years and has a
salvage value of $500.
On May 1st, 2018, ABC Corp received $1,200 cash for
services to be performed in the future....
Acme Company Balance Sheet As of January 5, 2018 (amounts in thousands) Cash 14,300 Accounts Payable...
Acme Company Balance Sheet As of January 5, 2018 (amounts in
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4,100 Debt 3,200 Inventory 5,800 Other Liabilities 4,000 Property
Plant & Equipment 14,800 Total Liabilities 9,100 Other Assets
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,
which occur on January 6, 2018 1. Sell product for $20,000 with
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Valley Technology Balance Sheet As of March 11, 2018 (amounts in thousands) Cash 9,700 Accounts Payable...
Valley Technology Balance Sheet As of March 11, 2018 (amounts in
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4,500 Debt 2,900 Inventory 3,800 Other Liabilities 800 Property
Plant & Equipment 16,400 Total Liabilities 5,200 Other Assets
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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