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Author Question: Q9 Networks is a leading provider of outsourced data center infrastructure such as web-servers and ... (Read 64 times)

stock

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Q9 Networks is a leading provider of outsourced data center infrastructure such as web-servers and data storage. Forecast the financial statements for Q9 Networks 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. Forecast the financial statements for Q9. What is the change in the cash account from Year 5 to Year 6?
Sales growth of 20%. The cost of debt is 4%. The Tax rate is 35%. The depreciation rate is 5%. CAPEX is $4,000,000. Cash is the plug account. The following accounts are held constant: Long-term debt and Common Stock. No dividends are paid in Year 6.

Q9 Networks
Income Statement and Balance Sheet
As of December 31, Year 5 ($ 000s)
Year 5RatiosYear 6
Revenue $37,829 $45,395
COGS25,8400.683074
SG&A11,163
Dep. Exp.535
EBIT291
Int. Exp.136
EBT155
Provision for Income Taxes55
Net Income100 
AssetsYear 5Year 6
Cash71,301 
Other Current Assets5,0460.133390
Total Current Assets76,347
PP&E36,757
Total Assets113,104 
Liabilities & Stockholders' Equity
Total Current Liabilities7,6880.203230
Long-Term Debt4,0914,091
Total Liabilities11,779 
Shareholders' Equity
Common Stock178,328178,328
Retained Earnings-77,003
Total Owners Equity101,325
Total Liabilities and Owners Equity113,104  

◦ $2.292 million
◦ $1.301 million
◦ -$2.220 million
◦ -$6.702 million
◦ -$7.081 million


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Marked as best answer by stock on Apr 25, 2021

javimendoza7

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stock

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Reply 2 on: Apr 25, 2021
YES! Correct, THANKS for helping me on my review


meganmoser117

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

 

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