Homework Clinic

Social Science Clinic => Business => Finance => Topic started by: sam.t96 on Apr 25, 2021

Title: Blockbuster is a North American video and DVD sales and rental chain. Use the equation approach and ...
Post by: sam.t96 on Apr 25, 2021
Blockbuster is a North American video and DVD sales and rental chain. Use the equation approach and Blockbuster's financial statement for Year 2 to calculate additional funds needed (AFN) in Year 3. Assume that sales in Year 3 will be $5.67336 billion. Assume a 0% dividend payout rate.

Blockbuster Inc.
Income Statement and Balance Sheet
As of December 31, Year 2 ($000s)
Revenue $ 5,157,600 
COGS2,420,700
SG&A2,708,500
Dep. Exp.246,600
EBIT-218,200
Int. Exp.78,200
Income Before Tax-296,400
Income Taxes-56,100
Net Income -$   240,300 
ASSETS​
Total Current Assets716,400
PP&E909,000
Goodwill6,127,000
Total Assets$ 7,752,400 
LIABILITIES AND OWNERS EQUITY​
Total Current Liabilities1,268,800
Long Term Debt734,900
Total Liabilities$ 2,003,700 
Owners Equity​
Common Stock6,075,800
Retained Earnings-327,100
Total Stockholder Equity5,748,700
Total Liabilities and Owners Equity$ 7,752,400 

◦ -$225.363 million
◦ $63.243 million
◦ $125.363 million
◦ $189.900 million
◦ $299.990 million
Title: Blockbuster is a North American video and DVD sales and rental chain. Use the equation approach and ...
Post by: enass on Apr 25, 2021
$299.990 million