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Author Question: Polaris Industries produces a wide range of outdoor leisure vehicles including all-terrain vehicles ... (Read 75 times)

daltonest1984

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on: Apr 25, 2021
Polaris Industries produces a wide range of outdoor leisure vehicles including all-terrain vehicles (ATV's), motorcycles, and snowmobiles. Forecast the financial statements for Polaris for Year 6. Use the percent of sales method based on Year 5 and the assumptions listed below. Please note the ratios to sales provided in the table which are useful for making the forecast.
Sales decline by 5.5%. The cost of debt is 11.76%. The tax rate is 31%. The depreciation rate is 12%. CAPEX is $28,360. The following accounts are held constant: Goodwill, Long-term debt, and Common Stock. Cash is the PLUG account. No dividends.
Forecast the financial statements for Polaris. What is the change in the cash account from Year 5 to Year 6?

Polaris Industries Inc.
Income Statement and Balance Sheet
As of December 31, Year 5 ($000s)
​Year 5RatiosForecast
Revenue$1,908,459​ $1,803,494 
COGS1,454,3740.762067​
SG&A213,1140.111668​
Dep. Exp.28,632​​
EBIT212,339​​
Int. Exp.4,713​​
Income Before Tax207,626​​
Income Taxes64,348​​
Net Income $143,278 ​​
ASSETS​​​
Cash $19,675 ​​
Accounts Receivable354,3130.185654​
Total current assets373,988​​
PP&E222,336 ​​
Goodwill172,632​172,632
Total Assets $768,956 ​​
LIABILITIES AND OWNERS EQUITY​​​
Total Current Liabilities381,2990.199794​
Long Term Debt18,000​18,000
Total Liabilities$399,299​​
Owners Equity​​​
Common Stock417​417
Retained Earnings369,240​​
Total Owners Equity369,657​​
Total Liabilities and Owners Equity $768,956​ 

◦ -$132.146 million
◦ $135.146 million
◦ $139.157 million
◦ $146.187 million
◦ $154.821 million
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by daltonest1984 on Apr 25, 2021

rosiehomeworddo

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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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daltonest1984

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it

TheNamesImani

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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