Question
In: Accounting
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
Interest 1,017
Earnings before taxes $4,200
Taxes (40%) 1,680
Net income $2,520
Dividends (60%) $1,512
Addition to retained earnings $1,008
Assume that the company was operating at full capacity in 2016
with regard to all items except fixed assets; fixed assets in 2016
were being utilized to only 65% of capacity. By what percentage
could 2017 sales increase over 2016 sales without the need for an
increase in fixed assets? Round your answer to two decimal
places.
%
Now suppose 2017 sales increase by 25% over 2016 sales. Assume
that Krogh cannot sell any fixed assets. All assets other than
fixed assets will grow at the same rate as sales; however, after
reviewing industry averages, the firm would like to reduce its
operating costs/sales ratio to 84% and increase its total
liabilities-to-assets ratio to 42%. The firm will maintain its 60%
dividend payout ratio, and it currently has 1 million shares
outstanding. The firm plans to raise 35% of its 2017 forecasted
interest-bearing debt as notes payable, and it will issue bonds for
the remainder. The firm forecasts that its before-tax cost of debt
(which includes both short- and long-term debt) is 10.5%. Any stock
issuances or repurchases will be made at the firm's current stock
price of $40. Develop Krogh's projected financial statements. What
are the balances of notes payable, bonds, common stock, and
retained earnings? Round your answers to the nearest hundredth of
thousand of dollars.
Krogh Lumber Pro Forma Income Statement December 31, 2017
(Thousands of Dollars)
2016 2017
Sales $36,000 $?
Operating costs (includes depreciation) 30,783
EBIT $5,217 $?
Interest expense 1,017
EBT $4,200 $
Taxes (40%) 1,680
Net Income $2,520 $?
Dividends $1,512 $?
Addition to RE $1,008 $?
Krogh Lumber Pro Forma Balance Statement December 31, 2017
(Thousands of Dollars)
2016 2017
Assets
Cash $1,800 $?
Accounts receivable 10,800
Inventories 12,600
Fixed assets 21,600
Total assets $46,800 $?
Liabilities and Equity
Payables + accruals $9,720 $?
Short-term bank loans 3,472
Total current liabilities $13,192 $?
Long-term bonds 5,000
Total liabilities $18,192 $?
Common stock 2,000
Retained earnings 26,608
Total common equity $28,608 $?
Total liab. and equity $46,800 $?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
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...
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...
Krogh Lumber's 2016 financial statements are shown here. Krogh Lumber: Balance Sheet as of December 31,...
Krogh Lumber's 2016 financial statements are shown here.
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...
Stevens Textile: Balance Sheet as of December 31, 2006 (Thousands of Dollars) Cash $ 1,080 Accounts...
Stevens Textile: Balance Sheet as of December 31,
2006
(Thousands of Dollars)
Cash
$ 1,080
Accounts Payable
$ 4,320
Receivables
6,480
Accruals
2,880
Inventories
9,000
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
3,500
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
32,440
Earnings...
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
Statement of Cash Flows
January 1 to March 31, 2020
(amounts in thousands)...
Lightspeed Industries Balance Sheet As of December 31, 2019 (amounts in thousands) Cash 106,000 Accounts Payable...
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
January 1 to March 31, 2020
(amounts in thousands)...
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...
EXCESS CAPACITY Krogh Lumber's 2016 financial statements are shown here. Krogh Lumber: Balance Sheet as of...
EXCESS CAPACITY
Krogh Lumber's 2016 financial statements are shown here.
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...
EXCESS CAPACITY Krogh Lumber's 2016 financial statements are shown here. Krogh Lumber: Balance Sheet as of...
EXCESS CAPACITY
Krogh Lumber's 2016 financial statements are shown here.
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...
EXCESS CAPACITY Krogh Lumber's 2016 financial statements are shown here. Krogh Lumber: Balance Sheet as of...
EXCESS CAPACITY
Krogh Lumber's 2016 financial statements are shown here.
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...
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