| You have the 2023 financials for Bulldawg Enterprise in the tab of this worksheet titled "Project1". | |||||||||||
| Based on that and the additional information included in the worksheet: | |||||||||||
| 1) | Compute the projected income statement for 2024. | ||||||||||
| 2) | Complete the balance sheet for 2024, except for the cash amount. | ||||||||||
| Note that we will not be "plugging" any balance sheet items. That means since you have the information needed to determine each | |||||||||||
| line item on the balance sheet, none of the balance sheet amounts should be determined by adding up all the Asset and | |||||||||||
| Liability items and "plugging" the remaining item. | |||||||||||
| This will allow you to determine if your Cash Flow Statement is correct, since the cash balance calculated by your Cash Flow Statement | |||||||||||
| should provide the number that balances your balance sheet. | |||||||||||
| 3) | Complete the Cash Flow Statement for 2024. | ||||||||||
| Use the cash increase or decrease from the Cash Flow Statement for 2023 to determine the cash balance for the end of year 2024 cash | |||||||||||
| balance, thus finishing your balance sheet for 2024 as well. | |||||||||||
| 4) | Compute a two-way data table which produces the Cash at end of 2024: | ||||||||||
| Use I48 to N58 as marked in yellow for the data table. | |||||||||||
| Analyze possible sales increases from 1% to 10% in increments of 1%, storing these values in the column (I49:I58). | |||||||||||
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Analyze possible tax rates from 20% to 40% in increments of 5%, storing these values in the column (J48:N48).
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| Project 1: Spring 2024 | |||||||||||
| Balance Sheets | |||||||||||
| 2023 | 2024 | ||||||||||
| Assets | |||||||||||
| Cash | $ 50,000 | Cash computed from Cash Flow Statement | |||||||||
| Accounts receivable | 350,000 | 380,000 | A/R as given | ||||||||
| Inventories | 700,000 | 760,000 | Inventory as given | ||||||||
| Total current assets | $ 1,100,000 | $ 1,140,000 | |||||||||
| Gross fixed assets | 700,000 | 770,000 | Gross Fixed assets as given | ||||||||
| Less: accumulated depreciation | 150,000 | A/D calculated based on depreciation | |||||||||
| Net fixed assets | $ 550,000 | ||||||||||
| Total assets | $ 1,650,000 | ||||||||||
| Liabilities and equity | |||||||||||
| Accounts payable | $ 150,000 | $ 180,000 | A/P as given | ||||||||
| Notes payable | 200,000 | 150,000 | N/P as given | ||||||||
| Accruals | 100,000 | 100,000 | Accruals as given | ||||||||
| Total current liabilities | $ 450,000 | ||||||||||
| Long-term debt | 400,000 | 425,000 | LTD as given | ||||||||
| Total debt | $ 850,000 | $ 425,000 | |||||||||
| Common stock (100,000 shares) | 600,000 | 600,000 | C/S as given | ||||||||
| Retained earnings | 200,000 | R/E calculated | |||||||||
| Total common equity | $ 800,000 | $ 600,000 | |||||||||
| Total liabilities and equity | $ 1,650,000 | $ 1,025,000 | |||||||||
| Balance check | $ - | Balance check should be zero | |||||||||
| Income Statements | 2023 | 2024 | |||||||||
| Sales | $ 3,432,000 | 2023 Sales increase by | 10.0% | ||||||||
| Cost of goods sold | 2,864,000 | Cost of goods percentage constant for all years | |||||||||
| Other expenses | 358,672 | Other expenses remain the same for 2024. | |||||||||
| Total operating expenses excluding depreciation | $ 3,222,672 | $ - | |||||||||
| Depreciation | 120,000 | Depreciation constant for both years. | |||||||||
| Earnings before interest and taxes (EBIT) | $ 89,328 | ||||||||||
| Interest expense | 45,000 | Interest expense remains constant for both years. | |||||||||
| Earnings before taxes (EBT) | $ 44,328 | ||||||||||
| Taxes | 15,515 | The tax rate for both years is | 35.0% | ||||||||
| Net income | $ 28,813 | ||||||||||
| Earnings Per Share | $ 0.288 | EPS should be calculated | |||||||||
| Dividends Per Share | $0.000 | Dividends are | 0.0% | of net income for all both years | |||||||
| Shares outstanding | 100,000 | 100,000 | |||||||||
| Two-way data table | |||||||||||
| Statement of Cash Flows | |||||||||||
| 2024 | |||||||||||
| Operating Activities | |||||||||||
| Net Income | |||||||||||
| Depreciation and amortization | |||||||||||
| Change in accounts payable | |||||||||||
| Change in accruals | |||||||||||
| Change in accounts receivable | |||||||||||
| Change in inventories | |||||||||||
| Net cash provided by operating activities | $ - | ||||||||||
| Long-Term Investing Activities | |||||||||||
| Additions to property, plant, and equipment | |||||||||||
| Net cash used in investing activities | |||||||||||
| Financing Activities | |||||||||||
| Change in notes payable | |||||||||||
| Increase in long-term debt | |||||||||||
| Payment of cash dividends | |||||||||||
| Net cash provided by financing activities | |||||||||||
| Summary | |||||||||||
| Net increase (decrease) in cash | |||||||||||
| Cash at beginning of the year | |||||||||||
| Cash at end of the year | |||||||||||
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