keiuanna78
Oct 30, 2008, 04:04 PM
SKYWALKER ENTERPRISES Sales growth rate 40% Average collection period 14.08
Chapter 9 New PPE $240 Number of days' sales in inventory 107.6
New long-term debt $0 Number of days' purchases in A/P 48.34
Cash dividends $0
Required current ratio 2.0
NOTE: BECAUSE OF SPREADSHEET ROUNDING, NOT ALL OF THE DISPLAYED TOTALS RECONCILE EXACTLY.
Year Forecasted
2008 2009
BALANCE SHEET
Assets
Cash 30 42 natural 40% increase
Investment Securities 70 98 assume increase at same rate as sales
Receivables 81 113 based on expected average collection period
Inventory 459 643 based on expected number of days' sales in inventory
Total Current Assets 640 896
Long-Term Investments 250 350 assume increase at same rate as sales
Property, Plant, & Equipment 597 837 new PPE of $240
Less: Accumulated Depreciation (27) (48) last year plus this year's depreciation expense
570 789
Other Long-Term Assets 40 56 assume increase at same rate as sales
Intangible Assets 100 140 assume increase at same rate as sales
Total Assets 1,600 2,231
Liabilities
Accounts Payable 222 313 based on expected number of day's purchases in A/P
Unearned Revenue 35 49 natural 40% increase
Short-term Loans Payable 30 86 figure to make current ratio equal to 2.0
Total Current Liabilities 287 448
Long-term Debt 671 671 no new long-term debt
Other Long-Term Liabilities 253 354 assume increase at same rate as sales
Total Liabilities 1,211 1,473
Stockholders' Equity
Paid in Capital 200 528 balancing figure
Retained Earnings (as of 12/31) 117 158 computed from net income and $0 dividends
Less: Treasury Stock (60) (60) no new repurchases
Accumulated other comprehensive income 132 132 best estimate is unchanged balance
Total Liab. and Equities 1,600 2,231
Retained Earnings (as of 1/1) 93 117
+ Net Income 24 41
- Dividends 0 0 $0 dividends
Retained Earnings (as of 12/31) 117 158
INCOME STATEMENT
Sales 2,100 2,940 increase of 40%
Cost of Goods Sold 1,557 2,180 same percentage of sales as in prior year
Gross Profit 543 760
Depreciation Expense 15 21 increase in proportion to increase in PPE
Other Operating Expenses 465 651 same percentage of sales as in prior year
Operating Income 63 88
Interest Expense 27 27 same as last year; no new long-term debt
Income Before Taxes 36 61
Income Tax Expense 12 20 same percentage of pre-tax income as last year
Net Income 24 41
STATEMENT OF CASH FLOWS
Operating Activities
Net Income 41
Depreciation 21
Change in A/R -32
Change in Inventory -184
Change in Other Long-Term Assets -16
Change in A/P 91
Change in Unearned Revenue 14
Change in Other Long-Term Liabilities 101
Cash from operating activities 36
Investing Activities
Purchase of new PPE -240
Purchase of intangible assets -40
(Purchase) sale of long-term investments -100
(Purchase) sale of investment securities -28
Cash from investing activities -408
Financing Activities
New short-term loans payable 56
New long-term debt 0
New paid-in capital 328
Cash paid for treasury stock purchases 0
Cash dividends 0
Cash from financing activities 384
Net change in cash 12
Chapter 9 New PPE $240 Number of days' sales in inventory 107.6
New long-term debt $0 Number of days' purchases in A/P 48.34
Cash dividends $0
Required current ratio 2.0
NOTE: BECAUSE OF SPREADSHEET ROUNDING, NOT ALL OF THE DISPLAYED TOTALS RECONCILE EXACTLY.
Year Forecasted
2008 2009
BALANCE SHEET
Assets
Cash 30 42 natural 40% increase
Investment Securities 70 98 assume increase at same rate as sales
Receivables 81 113 based on expected average collection period
Inventory 459 643 based on expected number of days' sales in inventory
Total Current Assets 640 896
Long-Term Investments 250 350 assume increase at same rate as sales
Property, Plant, & Equipment 597 837 new PPE of $240
Less: Accumulated Depreciation (27) (48) last year plus this year's depreciation expense
570 789
Other Long-Term Assets 40 56 assume increase at same rate as sales
Intangible Assets 100 140 assume increase at same rate as sales
Total Assets 1,600 2,231
Liabilities
Accounts Payable 222 313 based on expected number of day's purchases in A/P
Unearned Revenue 35 49 natural 40% increase
Short-term Loans Payable 30 86 figure to make current ratio equal to 2.0
Total Current Liabilities 287 448
Long-term Debt 671 671 no new long-term debt
Other Long-Term Liabilities 253 354 assume increase at same rate as sales
Total Liabilities 1,211 1,473
Stockholders' Equity
Paid in Capital 200 528 balancing figure
Retained Earnings (as of 12/31) 117 158 computed from net income and $0 dividends
Less: Treasury Stock (60) (60) no new repurchases
Accumulated other comprehensive income 132 132 best estimate is unchanged balance
Total Liab. and Equities 1,600 2,231
Retained Earnings (as of 1/1) 93 117
+ Net Income 24 41
- Dividends 0 0 $0 dividends
Retained Earnings (as of 12/31) 117 158
INCOME STATEMENT
Sales 2,100 2,940 increase of 40%
Cost of Goods Sold 1,557 2,180 same percentage of sales as in prior year
Gross Profit 543 760
Depreciation Expense 15 21 increase in proportion to increase in PPE
Other Operating Expenses 465 651 same percentage of sales as in prior year
Operating Income 63 88
Interest Expense 27 27 same as last year; no new long-term debt
Income Before Taxes 36 61
Income Tax Expense 12 20 same percentage of pre-tax income as last year
Net Income 24 41
STATEMENT OF CASH FLOWS
Operating Activities
Net Income 41
Depreciation 21
Change in A/R -32
Change in Inventory -184
Change in Other Long-Term Assets -16
Change in A/P 91
Change in Unearned Revenue 14
Change in Other Long-Term Liabilities 101
Cash from operating activities 36
Investing Activities
Purchase of new PPE -240
Purchase of intangible assets -40
(Purchase) sale of long-term investments -100
(Purchase) sale of investment securities -28
Cash from investing activities -408
Financing Activities
New short-term loans payable 56
New long-term debt 0
New paid-in capital 328
Cash paid for treasury stock purchases 0
Cash dividends 0
Cash from financing activities 384
Net change in cash 12