1 answer

Construct Albert Retail Co's Pro Forma Income Statement and Balance Sheet for Years 1 to 3...

Question:

Construct Albert Retail Co's Pro Forma Income Statement and Balance Sheet for Years 1 to 3 under the following policies:

COGS+SG&A+Depreciation = 60% of Revenue

Dividend Payout = 50%

Current Assets = 40% of Revenue

Net Fixed Assets = 60% of Revenue

Current Liabilities = 70% of Current Assets

Corporate Tax Rate = 21%

Year
0 (2018) 1 2 3
Revenue 150.0 195.0 253.5 253.5
   COGS+SG&A+Depreciation 90.0
EBIT 60.0
   Tax (21%) 12.6
Net Income 47.4
Dividends 23.7
Addition to Retained Earnings 23.7
Current Assets 60.0
Net Fixed Assets 90.0
Total Assets 150.0
Current Liabilities 42.0
Long-Term Liab - Debt 30.0
Owners' Equity 78.0
Total Liabilities and Owners' Equity 150.0
Assets – Liabilities &Owners Equity 0.0

What would you do for Year 2?

Question 19 options:

Nothing, there will be an excess of cash for $20

Finance shortfall with Notes Payable for $20

Finance shortfall with Notes Payable for $8.7

Nothing, there will be an excess of cash for $8.7


Answers

1
Year
0 (2018) 1 2 3
Revenue 150 195 253.5 253.5
   COGS+SG&A+Depreciation 90 117 152.1 152.1
EBIT 60 78 101.4 101.4
   Tax (21%) 12.6 16.4 21.3 21.3
Net Income 47.4 61.6 80.1 80.1
Dividends 23.7 30.8 40.1 40.1
Addition to Retained Earnings 23.7 30.8 40.1 40.1
Current Assets 60 78.0 101.4 101.4
Net Fixed Assets 90 117.0 152.1 152.1
Total Assets 150 195.0 253.5 253.5
Current Liabilities 42 54.6 71.0 71.0
Long-Term Liab - Debt 30 31.6 33.7 -6.4
Owners' Equity 78 108.8 148.9 188.9
Total Liabilities and Owners' Equity 150 195.0 253.5 253.5
Assets – Liabilities &Owners Equity 0 0.0 0.0 0.0
.

Similar Solved Questions

1 answer
His Question: 3 pts 23 of 26 (1 complete) Given that the index is 4 smplify...
his Question: 3 pts 23 of 26 (1 complete) Given that the index is 4 smplify the following. Assume that all variables are nonnegative real numbers. 1792x18,35 216 1792x18,35 ,16 (Type an exact answer, using radicals as needed. Simplify your answer.)...
1 answer
ROUND ANSWER TO THE FOURTH DECIMAL PLACE IF NEEDED Question 10 (1 point) AR-C series circuit...
ROUND ANSWER TO THE FOURTH DECIMAL PLACE IF NEEDED Question 10 (1 point) AR-C series circuit is connected to a 12 volt battery. Initially the capacitor has zero charge. Assume R= 17 12, C= 1,043 uF. When the circuit is closed, calculate the time (in Millisecond) when the capacitor voltage will be...
1 answer
In January 2017, installation costs of $5,800 on new machinery were charged to Maintenance and Repairs...
In January 2017, installation costs of $5,800 on new machinery were charged to Maintenance and Repairs Expense. Other costs of this machinery of $29,000 were correctly recorded and have been depreciated using the straight-line method with an estimated life of 10 years and no salvage value. At Decemb...
1 answer
GDP с s lg х M AE 360 352 8 28 50 100 70 380 368...
GDP с s lg х M AE 360 352 8 28 50 100 70 380 368 12 28 50 100 70 400 384 16 28 50 100 70 420 400 20 28 50 100 70 440 416 24 28 50 100 70 460 432 28 28 50 100 70 480 448 32 28 50 100 70 When GDP = 360, AE=? Ą When GDP = 380, AE=? Ą When GDP=400, AE=? Ą When GDP=420, AE=? &#...
1 answer
(8) 20 pts) Use Green's theorem to evaluate f yi d- y dy where C ia gven in en in the figure 2 山 2 (8) 20 pts) Use Green's theorem to evaluate f yi d- y dy where C ia gven in en in...
(8) 20 pts) Use Green's theorem to evaluate f yi d- y dy where C ia gven in en in the figure 2 山 2 (8) 20 pts) Use Green's theorem to evaluate f yi d- y dy where C ia gven in en in the figure 2 山 2...
1 answer
Need help uestion With respect to transcription of the lac operon, O it is activated when...
need help uestion With respect to transcription of the lac operon, O it is activated when the lac repressor releases the inducer molecule ® it is inactivated by CAP binding to the operator it is inactivated by cAMP's presence ( it requires RNA polymerase O all of the above are true LiC n...
1 answer
1. (25 points) Atlantic Company has purchased both shares of stock and a bond instrument from...
1. (25 points) Atlantic Company has purchased both shares of stock and a bond instrument from Bay Company. Bay shares sell at S8.00 per share. The bond purchased cost $94,000 and pays 6% per year in cash interest on a maturity value of $100,000. Atlantic bought the bond to yield 7% annually. The bon...
1 answer
30. A truck on a straight road starts from rest and accelerates at 2.9 m/s? until...
30. A truck on a straight road starts from rest and accelerates at 2.9 m/s? until it reaches a speed of 32 m/s. Then the truck travels for 33 s at constant speed until the brakes are applied, stopping the truck in a uniform manner in an additional 20.0 s. (a) How long is the truck in motion? (b) Wha...
1 answer
A prominent argument against the use of price ceilings is: 48.45 o they are unfair o...
A prominent argument against the use of price ceilings is: 48.45 o they are unfair o they lead to rent seeking o they lead to a surplus and a waste of society's resources. o they raise corporate profits....
1 answer
The order of the genes in bacteriopage alpha is: A B C D E att int...
The order of the genes in bacteriopage alpha is: A B C D E att int xis N CI O P Q S R Given the bacterial attachment site , att, is between gal and bio in the bacterial chromosome, what is the prophage gene order? A mutant phage is found to have the reverse gene order in the prophage as in the wildt...
1 answer
Problem 3 A parallel-plate capacitor with plate area 5.00 cm2 and air-gap separation 0.29 mm is...
Problem 3 A parallel-plate capacitor with plate area 5.00 cm2 and air-gap separation 0.29 mm is connected to a 12.00 V battery, and fully charged. The battery is then disconnected (a) What is the charge on the capacitor? 1.83x10-10 (c You are correct. Computer's answer now shown above Your recei...
1 answer
Get on Google and search for information on interviewing tips and techniques. Come up with one go...
Get on Google and search for information on interviewing tips and techniques. Come up with one good question that you need answered that wasn’t in your research. “What do you do if…?” “Do you need to…?...
1 answer
Predict which substance of each pair has the higher boiling point, and explain your reasoning. Then...
Predict which substance of each pair has the higher boiling point, and explain your reasoning. Then look up the substances in the Handbook of Chemistry and Physics to see if you were correct....
1 answer
On June 1, Musicland Inc. purchases 125 CDs at $4.08 each on account from its distributor...
On June 1, Musicland Inc. purchases 125 CDs at $4.08 each on account from its distributor for a total of $510. The credit terms of the purchase were 2/10 n/30. Also on June 1, Musicland paid freight charges of $22.18 cash for delivery of the CDs. On June 4, Musicland returned 15 defective CDs for an...
1 answer
Three charged particles are located at the corners of an equilateral triangle as shown in the...
Three charged particles are located at the corners of an equilateral triangle as shown in the Figure P23.15. Calculate the total electric force on the 7.00-mC charge....
1 answer
True or False? Leverage is created when a company accumulates significant amounts of Cash. Companies have...
True or False? Leverage is created when a company accumulates significant amounts of Cash. Companies have experienced significant increases in accounts receivable because of cash based sales in direct to consumer businesses. Long-term Marketable Securities are not as liquid as Shor...
1 answer
Bnone of the above QUESTION 16 Which of the following fluids should be used to treat...
bnone of the above QUESTION 16 Which of the following fluids should be used to treat cerebral edema? O a. 0.9% NaCl O b. 0.45 % NaCl O C. 3.0 NaCI d. None of the above click Save ond Submic to save ond sionit Cick Save All nswers to sove al answers...