Answer:
Jim's Espresso
The forecasted costs will be :___________
a. Costs = $110,168
b. Depreciation = $6,575
c. Net Income = $70,482
d. Cash = $16,600
e. Accounts receivable = $2,283
f. Inventory = $4,511
g. Property, plant, and equipment = $11,085
Explanation:
a) Data and Calculations:
Sales growth = 10.3%
Balance Sheet
Assets Percentage of sales
Current Forecast
Cash and Equivalents $15,050 0.07357 $16,600
Accounts Receivable 2070 0.01012 2,283
Inventories 4090 0.01999 4,511
Total Current Assets $21,210
Property, Plant and Equipment 10,050 0.04913 11,085
Total Assets $31,260
Liabilities and Equity:
Accounts Payable $1,580
Debt 3930
Total Liabilities $5,510
Stockholders' Equity 25750
Total Liabilities and Equity $31,260
Income Statement: Current % Forecast
Year
Sales $204,560 1 $225,630
Costs Except Depreciation (99,880) 0.48827 (110,168)
EBITDA $104,680 0.51173
Depreciation (5,960) 0.02914 (6,575)
EBIT $98,720 0.48260
Interest Expense (net) (410) 0.00200
Pretax Income $98,310 0.48059
Income Tax (34,409) 0.16821
Net Income $63,901 0.31238 $70,482
The forecasts are based on sales of the current year and the next year.
