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In: Finance

1. Bien Company has the following financial statements for 2018:              Income statement                 &nb

1. Bien Company has the following financial statements for 2018:

             Income statement                                               balance sheet                          

       Sales                 $ 36,000               Assets       $ 28,300      Debt          $   7000

       Costs                   27,500                                                     Equity        21,300

       Net income       $   8,500               Total          $ 28,300      Total             $28,300

The company has no dividend currently. It expects 10% sales, costs and income increase in 2019. It also predicts assets increase by 10% as well.   

  1. Create a pro forma 2019 income statement and balance sheet

  1. calculate the new debt level in order to balance the 2019 balance sheet;

  1. In 2019, Bien decides to pay out 40% of income as dividend. Cost, income and assets will increase by 10% as sales, and debt stays constant.

What’s the EFN?

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Expert Solution

jeff jeffy answered 1 year ago
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