This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Outlaws is a general goods retail chain in the High Plains region. Forecast the financial statements ... (Read 59 times)

shenderson6

  • Hero Member
  • *****
  • Posts: 573
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
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by shenderson6 on Apr 25, 2021

kthug

  • Sr. Member
  • ****
  • Posts: 332
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.
Answer Preview
Only 59% of students answer this correctly


shenderson6

  • Member
  • Posts: 573
Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it

bulacsom

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

About 3.2 billion people, nearly half the world population, are at risk for malaria. In 2015, there are about 214 million malaria cases and an estimated 438,000 malaria deaths.

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Did you know?

The horizontal fraction bar was introduced by the Arabs.

Did you know?

Parkinson's disease is both chronic and progressive. This means that it persists over a long period of time and that its symptoms grow worse over time.

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

Mount Logan, Yukon. Environmental conditions and organisms vary greatly from low to high elevations Mount Logan, Yukon. Environmental conditions and organisms vary greatly from low to high elevations
Ethnic Differences in Financial Support for College Based on a sample of 304 emerging adults aged 2 Ethnic Differences in Financial Support for College Based on a sample of 304 emerging adults aged 2
Table 6.1 illustrates the main regime types and their differences. It breaks the regimes into four Table 6.1 illustrates the main regime types and their differences. It breaks the regimes into four
Close-up view of Pluto's mountains, frozen plains and hazes Close-up view of Pluto's mountains, frozen plains and hazes
Body Part, Method of Examination, and Equipment Used During the General Physical Examination Cont Body Part, Method of Examination, and Equipment Used During the General Physical Examination Cont
A genetic map showing the location of revertible (point) mutants of the rll region A genetic map showing the location of revertible (point) mutants of the rll region
Video: Osmosis - Isotonic, Hypotonic, and Hypertonic​ Solutions

For a complete list of videos, visit our video library