Question
In: Finance
Consider the following simplified financial statements for the Phillips Corporation (assuming no income taxes): Income Statement...
|
Consider the following simplified financial statements for the Phillips Corporation (assuming no income taxes): |
| Income Statement | Balance Sheet | ||||
| Sales | $25,000 | Assets | $10,000 | Debt | $4,600 |
| Costs | 13,200 | Equity | 5,400 | ||
| Net income |
$11,800 |
Total |
$10,000 |
Total |
$10,000 |
| Phillips has predicted a sales increase of 11 percent. It has predicted that every item on the balance sheet will increase by 11 percent as well. |
| Required: |
| Calculate the dividend paid. (Do not round your intermediate calculations.) |
Solutions
Expert Solution
Net income next year = $11,800 * 1.11 = $13,098
Equity next year = $5,400 * 1.11 = $5,994
Equity next year = Equity today + Net income next year - Dividend paid
$5,994 = $5,400 + $13,098 - Dividend paid
Dividend paid = $5,400 + $13,098 - $5,994
Dividend paid = $12,504
jeff jeffy answered 2 years agoRelated Solutions
Consider the following simplified financial statements for the Phillips Corporation (assuming no income taxes): Income Statement...
Consider the following simplified financial statements for the
Phillips Corporation (assuming no income taxes):
Income Statement
Balance Sheet
Sales
$27,000
Assets
$10,800
Debt
$4,600
Costs
12,800
Equity
6,200
Net income
$14,200
Total
$10,800
Total
$10,800
Phillips has predicted a sales increase of 10 percent. It has
predicted that every item on the balance sheet will increase by 10
percent as well.
Required:
Calculate the dividend paid. (Do not round your
intermediate calculations.)
Multiple Choice
$15,000
$14,969
$14,975
$14,981
$23,740
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Consider the following simplified financial statements for the
Yoo Corporation (assuming no income taxes):
Income Statement
Balance Sheet
Sales
$
46,100
Assets
$
24,300
Debt
$
6,300
Costs
39,630
Equity
18,000
Net
income
$
6,470
Total
$
24,300
Total
$
24,300
The company has predicted a sales increase of 10 percent. Assume
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Costs and assets vary with sales, but debt and equity do not.
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Income Statement
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Costs
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Balance Sheet
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Debt
$37803
Equity
?
The company has predicted a sales increase of 14 percent. It has
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Consider the following simplified financial statements for the
Wims Corporation (assuming no income taxes)
Income Statement
Balance Sheet
Sales
$
45,700
Assets
$
21,900
Debt
$
5,900
Costs
40,100
Equity
16,000
Net income
$
5,600
Total
$
21,900
Total
$
21,900
The company has predicted a sales increase of 6 percent. Assume
the company pays out half of net income in the form of a cash
dividend. Costs and assets vary with sales, but debt and equity do
not.
Prepare...
Consider the following simplified financial statements for the Yoo Corporation (assuming no income taxes): Income Statement...
Consider the following simplified financial statements for the
Yoo Corporation (assuming no income taxes):
Income Statement
Balance Sheet
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$
39,600
Assets
$
23,800
Debt
$
6,800
Costs
31,800
Equity
17,000
Net income
$
7,800
Total
$
23,800
Total
$
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Consider the following simplified financial statements for the
Fire Corporation (assuming no income taxes):
Income Statement
Sales
$38,804
Costs
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Balance Sheet
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Debt
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Equity
?
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percent as well.
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Costs $24,400
Net Income $7,600
Balance Sheet
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Debt $5,800
Equity $19,500
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The company has forecast a sales increase of 15 percent. Fire
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What is the plug variable here?
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millions)
Net sales
$
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Cost of goods sold
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Other expenses
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Depreciation
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Earnings before interest and taxes (EBIT)
$
2,410
Interest expense
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Dividends
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BALANCE SHEET
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End of Year
Start of Year
Assets
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$...
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Other expenses
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Depreciation
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Earnings before interest and taxes (EBIT)
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Interest expense
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BALANCE SHEET
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Assets
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in a recent year: INCOME STATEMENT (Figures in $ millions) Net
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