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Author Question: Outlaws is a general goods retail chain in the High Plains region. Forecast the financial statements ... (Read 47 times)

shenderson6

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on: Apr 25, 2021
Outlaws is a general goods retail chain in the High Plains region. Forecast the financial statements for Outlaws for Year 7. Use the percent of sales method based on Year 6 and the assumptions listed below. Please note the ratios provided in the table which are useful for making the forecast. 
Sales growth of 5.5%. The cost of debt is 6.25%. The tax rate is 35%. The depreciation rate is 6%. CAPEX is $300 Million. The following accounts are constant: Goodwill and common stock. Long term debt is the PLUG variable. No dividends.
Forecast the financial statements for Outlaws. What are the additional funds needed (AFN) in Year 7? The AFN is the change in the plug account from Year 6 to Year 7.

​Year 6RatiosForecast
Revenue$29,210 ​$30,817 
COGS22,1520.758370​
SG&A5,2450.179562​
Dep. Exp.621​​
EBIT1,192​​
Int. Exp.277​​
EBT915​​
Inc. Taxes288​​
Net Income$627​​
ASSETSYear 6RatiosForecast
Total Current Assets$4,385 0.150120​
PP&E9,637​​
Goodwill678 ​678
Total Assets $14,700 ​​
LIABILITIES AND OWNER'S EQUITY​​​
Total Current Liabilities3,6510.124991​
Long Term Debt4,208​​
Total Liabilities$7,859 ​​
Owner's Equity​​​
Common Stock1,192​1,192
Retained Earnings5,089​​
Total Owner's Equity6,281​​
Total Liabilities & Owner's Equity$14,700 ​ 

◦ -$381 million
◦ -$290 million
◦ -$91 million
◦ $127 million
◦ $189 million
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by shenderson6 on Apr 25, 2021

kthug

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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shenderson6

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)

mcarey591

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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