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Author Question: Outlaws is a general goods retail chain in the High Plains region. Forecast the financial statements ... (Read 21 times)

shenderson6

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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 Stock1,1921,192
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


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Marked as best answer by shenderson6 on Apr 25, 2021

kthug

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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
Thanks for the timely response, appreciate it


deja

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

 

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