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Calculate the EFN for 15, 20 and 45 percent growth rates. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) EFN 15% 20% 45%

Calculate the EFN for 15, 20 and 45 percent growth rates. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) EFN 15% 20% 45%

Entrepreneurial Finance
Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter5: Evaluating Operating And Financial Performance
Section: Chapter Questions
Problem 9EP
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Complete the pro forma income statements below. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Sales Costs Other expenses EBIT Interest paid Taxable income Taxes (23%) Net income Dividends Add to RE Pro Forma Income Statement 15% Sales Growth 20% Sales Growth $ EFN $ $ $ $ EA 875,150 $ 709,550 32,200 133,400 $ 15% 13,200 120,200 $ 27,646 92,554 $ $ 44,829 47,725 20% 45% Sales Growth 45% 913,200 $ 740,400 33,600 139,200 $ 13,200 126,000 $ 28,980 97,020 $ $ 46,993 50,027 Calculate the EFN for 15, 20 and 45 percent growth rates. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) 1,103,450 894,650 40,600 168,200 13,200 155,000 35,650 119,350 57,808 61,542
Transcribed Image Text:Complete the pro forma income statements below. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Sales Costs Other expenses EBIT Interest paid Taxable income Taxes (23%) Net income Dividends Add to RE Pro Forma Income Statement 15% Sales Growth 20% Sales Growth $ EFN $ $ $ $ EA 875,150 $ 709,550 32,200 133,400 $ 15% 13,200 120,200 $ 27,646 92,554 $ $ 44,829 47,725 20% 45% Sales Growth 45% 913,200 $ 740,400 33,600 139,200 $ 13,200 126,000 $ 28,980 97,020 $ $ 46,993 50,027 Calculate the EFN for 15, 20 and 45 percent growth rates. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) 1,103,450 894,650 40,600 168,200 13,200 155,000 35,650 119,350 57,808 61,542
The most recent financial statements for Crosby, Incorporated, follow. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. Assume the firm is operating at full capacity and the debt- equity ratio is held constant. CROSBY, INCORPORATED 2020 Income Statement Sales Costs Other expenses Earnings before interest and taxes Interest paid Taxable income Taxes (23%) Net Income Dividends $ 38,340 Addition to retained earnings 40,816 Current assets Cash Accounts receivable Inventory Total Total assets $ 25,040 34,440 71,240 $ 130,720 Fixed assets Net plant and equipment $ 218,000 $ 761,000 617,000 28,000 CROSBY, INCORPORATED Balance Sheet as of December 31, 2020 Assets $ 116,000 13,200 $ 102,800 23,644 $ 79,156 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings Total $ 348,720 Total llabilities and owners' equity $ 60,600 17,000 $ 77,600 $ 109,000 $ 104,000 58,120 $ 162,120 $ 348,720
Transcribed Image Text:The most recent financial statements for Crosby, Incorporated, follow. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. Assume the firm is operating at full capacity and the debt- equity ratio is held constant. CROSBY, INCORPORATED 2020 Income Statement Sales Costs Other expenses Earnings before interest and taxes Interest paid Taxable income Taxes (23%) Net Income Dividends $ 38,340 Addition to retained earnings 40,816 Current assets Cash Accounts receivable Inventory Total Total assets $ 25,040 34,440 71,240 $ 130,720 Fixed assets Net plant and equipment $ 218,000 $ 761,000 617,000 28,000 CROSBY, INCORPORATED Balance Sheet as of December 31, 2020 Assets $ 116,000 13,200 $ 102,800 23,644 $ 79,156 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings Total $ 348,720 Total llabilities and owners' equity $ 60,600 17,000 $ 77,600 $ 109,000 $ 104,000 58,120 $ 162,120 $ 348,720
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