Author Question: Blockbuster is a North American video and DVD sales and rental chain. Use the equation approach and ... (Read 50 times)

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
COGS	2,420,700
SG&A	2,708,500
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 Assets	716,400
PP&E	909,000
Goodwill	6,127,000
Total Assets	$ 7,752,400
LIABILITIES AND OWNERS EQUITY
Total Current Liabilities	1,268,800
Long Term Debt	734,900
Total Liabilities	$ 2,003,700
Owners Equity
Common Stock	6,075,800
Retained Earnings	-327,100
Total Stockholder Equity	5,748,700
Total Liabilities and Owners Equity	$ 7,752,400

◦ -$225.363 million
◦ $63.243 million
◦ $125.363 million
◦ $189.900 million
◦ $299.990 million

enass · **Reply #1 on:** Apr 25, 2021

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