Question

In: Finance

Garlington Technologies Inc 2016 financial statements are shown below: Balance Sheet as of December 31, 2016...

Garlington Technologies Inc 2016 financial statements are shown below:

Balance Sheet as of December 31, 2016
Cash $180000
Receivables 360000
Inventories 720000
Total current assets 1260000
Fixed Assets 1440000
Accounts Payable $360000
Notes Payable 156000
Line of Credit 0
Accruals 180000
Total current liabilities 696000
Common stock 1800000
Retained earnings 204000
Total liabilities and equity 2700000

Income Statement for December 31, 2016
Sales $3600000
Operating costs 3279720
EBIT $320280
Interest 18280
Pre tax earnings $302000
Taxes 40% 120800
Net Income 181200
Dividends $108000

Suppose that in 2017 sales increase by 15% over 2016 sales and that 2017 dividends will increase to $198000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2016. Use an interest rate of 11% and assume that any new debt will be added at the end of the year. Cash does not earn any interest incime. Assume that the all new debt will be in the form of a line of credit.


Solutions

Expert Solution

EXCEL FORMULA:

jeff jeffy answered 4 months ago
Next > < Previous

Related Solutions

Garlington Technologies Inc.'s 2016 financial statements are shown below: Balance Sheet as of December 31, 2016...
Garlington Technologies Inc.'s 2016 financial statements are shown below: Balance Sheet as of December 31, 2016 Cash $   180,000 Accounts payable $   360,000 Receivables 360,000 Notes payable 156,000 Inventories 720,000 Line of credit 0 Total current assets $1,260,000 Accruals 180,000 Fixed assets 1,440,000 Total current liabilities $   696,000 Common stock 1,800,000 Retained earnings 204,000 Total assets $2,700,000 Total liabilities and equity $2,700,000 Income Statement for December 31, 2016 Sales $3,600,000 Operating costs 3,279,720 EBIT $  320,280 Interest 18,280 Pre-tax earnings $  302,000 Taxes (40%) 120,800...
Garlington Technologies Inc.'s 2016 financial statements are shown below: Balance Sheet as of December 31, 2016...
Garlington Technologies Inc.'s 2016 financial statements are shown below: Balance Sheet as of December 31, 2016 Cash $ 180,000 Accounts payable $ 360,000 Receivables 360,000 Notes payable 156,000 Inventories 720,000 Line of credit 0 Total current assets $1,260,000 Accruals 180,000 Fixed assets 1,440,000 Total current liabilities $ 696,000 Common stock 1,800,000 Retained earnings 204,000 Total assets $2,700,000 Total liabilities and equity $2,700,000 Income Statement for December 31, 2016 Sales $3,600,000 Operating costs 3,279,720 EBIT $ 320,280 Interest 18,280 Pre-tax earnings...
Garlington Technologies Inc.'s 2016 financial statements are shown below: Balance Sheet as of December 31, 2016...
Garlington Technologies Inc.'s 2016 financial statements are shown below: Balance Sheet as of December 31, 2016 Cash $   180,000 Accounts payable $   360,000 Receivables 360,000 Notes payable 156,000 Inventories 720,000 Line of credit 0 Total current assets $1,260,000 Accruals 180,000 Fixed assets 1,440,000 Total current liabilities $   696,000 Common stock 1,800,000 Retained earnings 204,000 Total assets $2,700,000 Total liabilities and equity $2,700,000 Income Statement for December 31, 2016 Sales $3,600,000 Operating costs 3,279,720 EBIT $  320,280 Interest 18,280 Pre-tax earnings $  302,000 Taxes (40%) 120,800...
Financing Deficit Garlington Technologies Inc.'s 2016 financial statements are shown below: Balance Sheet as of December...
Financing Deficit Garlington Technologies Inc.'s 2016 financial statements are shown below: Balance Sheet as of December 31, 2016 Cash $ 180,000 Accounts payable $ 360,000 Receivables 360,000 Notes payable 156,000 Inventories 720,000 Line of credit 0 Total current assets $1,260,000 Accruals 180,000 Fixed assets 1,440,000 Total current liabilities $ 696,000 Common stock 1,800,000 Retained earnings 204,000 Total assets $2,700,000 Total liabilities and equity $2,700,000 Income Statement for December 31, 2016 Sales $3,600,000 Operating costs 3,279,720 EBIT $ 320,280 Interest 18,280...
Financing Deficit Garlington Technologies Inc.'s 2016 financial statements are shown below: Balance Sheet as of December...
Financing Deficit Garlington Technologies Inc.'s 2016 financial statements are shown below: Balance Sheet as of December 31, 2016 Cash $   180,000 Accounts payable $   360,000 Receivables 360,000 Notes payable 156,000 Inventories 720,000 Line of credit 0 Total current assets $1,260,000 Accruals 180,000 Fixed assets 1,440,000 Total current liabilities $   696,000 Common stock 1,800,000 Retained earnings 204,000 Total assets $2,700,000 Total liabilities and equity $2,700,000 Income Statement for December 31, 2016 Sales $3,600,000 Operating costs 3,279,720 EBIT $  320,280 Interest 18,280 Pre-tax earnings $  302,000 Taxes...
inancing Deficit Garlington Technologies Inc.'s 2016 financial statements are shown below: Balance Sheet as of December...
inancing Deficit Garlington Technologies Inc.'s 2016 financial statements are shown below: Balance Sheet as of December 31, 2016 Cash $   180,000 Accounts payable $   360,000 Receivables 360,000 Notes payable 156,000 Inventories 720,000 Line of credit 0 Total current assets $1,260,000 Accruals 180,000 Fixed assets 1,440,000 Total current liabilities $   696,000 Common stock 1,800,000 Retained earnings 204,000 Total assets $2,700,000 Total liabilities and equity $2,700,000 Income Statement for December 31, 2016 Sales $3,600,000 Operating costs 3,279,720 EBIT $  320,280 Interest 18,280 Pre-tax earnings $  302,000 Taxes...
Financing Deficit Garlington Technologies Inc.'s 2016 financial statements are shown below: Balance Sheet as of December...
Financing Deficit Garlington Technologies Inc.'s 2016 financial statements are shown below: Balance Sheet as of December 31, 2016 Cash $ 180,000 Accounts payable $ 360,000 Receivables 360,000 Notes payable 156,000 Inventories 720,000 Line of credit 0 Total current assets $1,260,000 Accruals 180,000 Fixed assets 1,440,000 Total current liabilities $ 696,000 Common stock 1,800,000 Retained earnings 204,000 Total assets $2,700,000 Total liabilities and equity $2,700,000 Income Statement for December 31, 2016 Sales $3,600,000 Operating costs 3,279,720 EBIT $ 320,280 Interest 18,280...
Financing Deficit Garlington Technologies Inc.'s 2016 financial statements are shown below: Balance Sheet as of December...
Financing Deficit Garlington Technologies Inc.'s 2016 financial statements are shown below: Balance Sheet as of December 31, 2016 Cash $   180,000 Accounts payable $   360,000 Receivables 360,000 Notes payable 156,000 Inventories 720,000 Line of credit 0 Total current assets $1,260,000 Accruals 180,000 Fixed assets 1,440,000 Total current liabilities $   696,000 Common stock 1,800,000 Retained earnings 204,000 Total assets $2,700,000 Total liabilities and equity $2,700,000 Income Statement for December 31, 2016 Sales $3,600,000 Operating costs 3,279,720 EBIT $  320,280 Interest 18,280 Pre-tax earnings $  302,000 Taxes...
Financing Deficit Garlington Technologies Inc.'s 2016 financial statements are shown below: Balance Sheet as of December...
Financing Deficit Garlington Technologies Inc.'s 2016 financial statements are shown below: Balance Sheet as of December 31, 2016 Cash $ 180,000 Accounts payable $ 360,000 Receivables 360,000 Notes payable 156,000 Inventories 720,000 Line of credit 0 Total current assets $1,260,000 Accruals 180,000 Fixed assets 1,440,000 Total current liabilities $ 696,000 Common stock 1,800,000 Retained earnings 204,000 Total assets $2,700,000 Total liabilities and equity $2,700,000 Income Statement for December 31, 2016 Sales $3,600,000 Operating costs 3,279,720 EBIT $ 320,280 Interest 18,280...
Financing Deficit Garlington Technologies Inc.'s 2016 financial statements are shown below: Balance Sheet as of December...
Financing Deficit Garlington Technologies Inc.'s 2016 financial statements are shown below: Balance Sheet as of December 31, 2016 Cash $   180,000 Accounts payable $   360,000 Receivables 360,000 Notes payable 156,000 Inventories 720,000 Line of credit 0 Total current assets $1,260,000 Accruals 180,000 Fixed assets 1,440,000 Total current liabilities $   696,000 Common stock 1,800,000 Retained earnings 204,000 Total assets $2,700,000 Total liabilities and equity $2,700,000 Income Statement for December 31, 2016 Sales $3,600,000 Operating costs 3,279,720 EBIT $  320,280 Interest 18,280 Pre-tax earnings $  302,000 Taxes...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT