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Noah’s ark video games expects sales to grow by 25% next year. Assume that it pays out 95% of its net income. Using the following statements and the percent of sales method, forecast accounts receivable

Noah’s ark video games expects sales to grow by 25% next year. Assume that it pays out 95% of its net income. Using the following statements and the percent of sales method, forecast accounts receivable

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Noah’s ark video games expects sales to grow by 25% next year. Assume that it pays out 95% of its net income. Using the following statements and the percent of sales method, forecast accounts receivable
Year 0 Income Statement 320,000 Sales Costs Except Depreciation (150,000) EBITDA 170,000 (15,000) 155,000 (3,000) 152,000 (53,200) 98,800 Depreciation EBIT Interest Expense (net) Pretax Income Income Tax Net Income Balance Sheet Year 0 Assets Cash and Equivalents 25,000 Accounts Receivable 12,000 Inventories 5,000 42,000 Total Current Assets Property, Plant and Equipment Total Assets 120,000 162.000.
Transcribed Image Text:Year 0 Income Statement 320,000 Sales Costs Except Depreciation (150,000) EBITDA 170,000 (15,000) 155,000 (3,000) 152,000 (53,200) 98,800 Depreciation EBIT Interest Expense (net) Pretax Income Income Tax Net Income Balance Sheet Year 0 Assets Cash and Equivalents 25,000 Accounts Receivable 12,000 Inventories 5,000 42,000 Total Current Assets Property, Plant and Equipment Total Assets 120,000 162.000.
98,800 Net Income Year 0 Balance Sheet Assets 25,000 Cash and Equivalents 12,000 Accounts Receivable 5,000 42,000 Inventories Total Current Assets Property, Plant and Equipment 120,000 Total Assets 162,000 Liabilities and Equity Accounts Payable 45,000 Debt 48,000 Total Liabilities 93,000 Stockholders' Equity Total Liabilities and Equity 69,000 162,000
Transcribed Image Text:98,800 Net Income Year 0 Balance Sheet Assets 25,000 Cash and Equivalents 12,000 Accounts Receivable 5,000 42,000 Inventories Total Current Assets Property, Plant and Equipment 120,000 Total Assets 162,000 Liabilities and Equity Accounts Payable 45,000 Debt 48,000 Total Liabilities 93,000 Stockholders' Equity Total Liabilities and Equity 69,000 162,000
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