im's Espresso expects sales to grow by 10.3% next year. Jim's changes its payout ratio from 90% to 75% of net income next year. When the payout ratio was 90%, there was excess financing in the amount of $4,199. Jim's developed the pro forma financial statements given here LOADING... to reflect the change in the payout ratio to 75%. How will the net new financing change? The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. Income Statement Sales $228,078 Costs Except Depreciation (109,781) EBITDA $118,297 Depreciation (6,574) EBIT $111,723 Interest Expense (net) (474) Pretax Income $111,249 Income Tax (38,937) Net Income $72,312 Balance Sheet Assets Cash and Equivalents $16,446 Accounts Receivable 2,217 Inventories 4,335 Total Current Assets $22,998 Property, Plant and Equipment 11,118 Total Assets $34,116 Liabilities and Equity Accounts Payable $1,654 Debt 4,040 Total Liabilities $5,694 Stockholders' Equity $43,468 Total Liabilities and Equity $49,162
im's Espresso expects sales to grow by 10.3% next year. Jim's changes its payout ratio from 90% to 75% of net income next year. When the payout ratio was 90%, there was excess financing in the amount of $4,199. Jim's developed the pro forma financial statements given here LOADING... to reflect the change in the payout ratio to 75%. How will the net new financing change? The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. Income Statement Sales $228,078 Costs Except Depreciation (109,781) EBITDA $118,297 Depreciation (6,574) EBIT $111,723 Interest Expense (net) (474) Pretax Income $111,249 Income Tax (38,937) Net Income $72,312 Balance Sheet Assets Cash and Equivalents $16,446 Accounts Receivable 2,217 Inventories 4,335 Total Current Assets $22,998 Property, Plant and Equipment 11,118 Total Assets $34,116 Liabilities and Equity Accounts Payable $1,654 Debt 4,040 Total Liabilities $5,694 Stockholders' Equity $43,468 Total Liabilities and Equity $49,162
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Jim's Espresso expects sales to grow by
to reflect the change in the payout ratio to
10.3%
next year. Jim's changes its payout ratio from
90%
to
75%
of net income next year. When the payout ratio was
90%,
there was excess financing in the amount of
$4,199.
Jim's developed the pro forma financial statements given here
LOADING...
75%.
How will the net new financing change?The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career.
Income Statement
Sales $228,078
Costs Except Depreciation (109,781)
EBITDA $118,297
Depreciation (6,574)
EBIT $111,723
Interest Expense (net) (474)
Pretax Income $111,249
Income Tax (38,937)
Net Income $72,312
Sales $228,078
Costs Except Depreciation (109,781)
EBITDA $118,297
Depreciation (6,574)
EBIT $111,723
Interest Expense (net) (474)
Pretax Income $111,249
Income Tax (38,937)
Net Income $72,312
Balance Sheet
Assets
Cash and Equivalents $16,446
Accounts Receivable 2,217
Inventories 4,335
Total Current Assets $22,998
Property, Plant and Equipment 11,118
Total Assets $34,116
Liabilities and Equity
Accounts Payable $1,654
Debt 4,040
Total Liabilities $5,694
Stockholders' Equity $43,468
Total Liabilities and Equity $49,162
Assets
Cash and Equivalents $16,446
Accounts Receivable 2,217
Inventories 4,335
Total Current Assets $22,998
Property, Plant and Equipment 11,118
Total Assets $34,116
Liabilities and Equity
Accounts Payable $1,654
Debt 4,040
Total Liabilities $5,694
Stockholders' Equity $43,468
Total Liabilities and Equity $49,162
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