handsomeball
Nov 28, 2008, 12:06 AM
S&S Air INC.
2006 income statement
$
Sales: 21,785,300
Cost of goods sold: 15,874,700
Other expenses 2,762,500
Deprection: 976,200
EBIT: 2,171,900
Interest: 341,600
Taxable income: 1,830,300
Taxes(40%) 732,120
Net income: 1,098,180
Dividends $439,272
Add to retained earning 658,908
S&S Air INC.
2006 balance sheet
Current assets:
Cash 315,000
Accounts receivable 506,000
Inventory 740,800
Total current assets 1,561,800
Fixed assets:
Net plant & equipment 11,516,000
Total assets 13,077,800
Currentliability:
Accounts payable 635,000
Notes payable 1,450,000
Total current liabilities 2,085,000
Long term debt 3,800,000
Shareholder equity:
Common stock 250,000
Retained earnings 6,942,800
Total equity 7,192,800
Total liabilities & equity 13,077,800
Q1: Calculate the international growth rate & sustainable growth rate? What do these numbers mean?
Q2: S&S Air is planning for a growth rate of 12 percent next year. Calculare the EFN for the company assuming the company is operating at full capacity. Can the company's sales increase at this growth rate?
2006 income statement
$
Sales: 21,785,300
Cost of goods sold: 15,874,700
Other expenses 2,762,500
Deprection: 976,200
EBIT: 2,171,900
Interest: 341,600
Taxable income: 1,830,300
Taxes(40%) 732,120
Net income: 1,098,180
Dividends $439,272
Add to retained earning 658,908
S&S Air INC.
2006 balance sheet
Current assets:
Cash 315,000
Accounts receivable 506,000
Inventory 740,800
Total current assets 1,561,800
Fixed assets:
Net plant & equipment 11,516,000
Total assets 13,077,800
Currentliability:
Accounts payable 635,000
Notes payable 1,450,000
Total current liabilities 2,085,000
Long term debt 3,800,000
Shareholder equity:
Common stock 250,000
Retained earnings 6,942,800
Total equity 7,192,800
Total liabilities & equity 13,077,800
Q1: Calculate the international growth rate & sustainable growth rate? What do these numbers mean?
Q2: S&S Air is planning for a growth rate of 12 percent next year. Calculare the EFN for the company assuming the company is operating at full capacity. Can the company's sales increase at this growth rate?